The world has turned for marijuana, and the genie is out of the bottle, or should we say the smoke is out of the bong. May 2013 was a big month for those who actually inhale.
Colorado Governor John Hickenlooper signed two crucial bills, House Bills 1317 and 1318, stemming from the recent ballot initiative, Amendment 64, legalizing the recreational use of pot in Colorado, which lay out regulations for the sale and taxation of marijuana.
In Seattle, Reuters reports that ex-Microsoft strategist Jamen Shively announced plans to establish the first American pot brand, importing the weed legally from Mexico and retailing it in a chain of medical dispensaries and, where legal, retail outlets.
Shively's plans have the moral support of former Mexican President Vicente Fox, a conservative. Right now Shively is undertaking a press blitz in Mexico, where he plans to source his marijuana.
Very soon, Nevada could become the 14th state to legalize some form of medical marijuana. Governor Brian Sandoval is expected to sign legislation, SB 374, paving the way for opening medical marijuana dispensaries in the Silver State - up to 40 in Las Vegas alone.
And around the country events have transpired that suggest recreational marijuana may have a bright, lucrative future. The New York Police Department said they intend to de-prioritize pot busts, with pot-related arrests expected to drop a full 20% by the end of 2013.
The NYPD isn't alone. Police chiefs in big cities throughout the country have stated their preference to at least de-criminalize marijuana or put a lower priority on bot busts and focus on harder drugs. According to a Gallup poll, nationwide support for outright pot legalization has crossed the pivotal 50% threshold. A vigorous, healthy debate is underway across the country.
Marijuana: The Numbers Are Hard To Ignore
As events unfold, a bona fide emerging market in pot is taking shape. And the market is set to be big. The Colorado Futures Center estimates - conservatively - that the taxation regime outlined in the new Colorado marijuana laws could bring in as much as $650 million per year, much of that from a burgeoning new industry, pot tourism.
Colorado is noted for its rather low taxes, but it will be taxing marijuana aggressively and at many points in the production cycle, from grower to retail outlet. For instance, Colorado's sales tax is a modest 2.9%. Marijuana, however, will be assessed a 15% excise tax, as well as a 15% "special" sales tax - on top of the 2.9% state tax and any local taxes.
According to the Colorado Futures Center study, there's money to be made in that weed. Adults who choose to indulge can expect to pay around $185 per ounce. The study finds that the market will bear a wholesale cost of about $600 per pound, and retailers can expect a 175% markup.
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GW Pharmaceuticals also just had a new IPO on the Nasdaq. ticker symbol gwph and trades on the pink sheets gwprf. It is the same company gwprf was trading first and the difference between the stock prices is approx. 12 to 1.
Well spotted, Ellen! You're exactly right. I tended to use the London shares because they're a bit more established, with a nice, (relatively) long track record. GWP is making a pretty compelling bet, and their science is dead-on. There's a lot left to discover in this unassuming little plant, and we're just scratching the surface. -Ed.
Greg Madison your headline does not match the article. You did not list any retailers or wholesalers that an investor can invest.
@Peter Hallman. I don't know what to tell you. You might want to go back and re-read the part where it says "emerging market." Let it sink in. As of now, there aren't any wholesalers or retailers that you can invest in, unless you head out to Colorado and slide some money across one of these chaps desks. Believe me, I checked. They made me. It's likely that one WILL be able to invest in the wholesale/retail side eventually, but again, this is an emerging market that's something like two weeks old. If you want to play marijuana now, you're going to have to play with what the market gives you; science firms, paraphernelia distributors, and low-level dispensary outfitters. That's what there is. The science/lab segment is where to look first. That, like the headline says, is how you invest in marijuana at the moment.
Then tell us which of those science firms, paraphernelia distributors, and low-level dispensary outfitters we can invest in, and who do we give the money to to do so. Have things changed enough to invest in this emerging market
Lets roll a joint for common sense.
America's debt & social security problems will be to be solved by the legalization and taxation of marijuana, lol.
What about CBIS ?
@R. Doan. Thanks for writing! When I did the research for this, I analyzed a whole pot, er, basket of stocks in the marijuana sector, including Cannabis Science (CBIS). Let me repeat: This sector is a doozy. It is brand new, really, and it is shot right through with very iffy stocks. You'll note above how I say there are a lot of really volatile penny stocks throughout. I said that with good reason. CBIS trades at about $0.04 and has for the past year. It has profoundly underwhelming technicals, and nothing really mind-blowing (pun 100% intended) in the pipeline (no pun intended). I'd look for it to do… nothing much at all. That's not to say it's a bad company, but the stock is worth giving a miss. Unless you've got the intestinal fortitude to withstand the volatility and make highly speculative moves on these stocks. In that case, mazel tov. Let us know how you do either way. Meanwhile, I think GW Pharma. is the horse to bet on in this sector. Big time science, big time possibilities.
This Greg Madison fellow is writing some very informative and entertaing articles. I have to thnk big tobacco will be the first to get their paws on marijuana. Also, look for hemp to take a bit out of the cotton consortium.
What is your thought on MDBX?
Commenters appear to have the wrong idea and the author does as well. Investing in the marijuana trade is as easy as growing it yourself. We should not feel compelled to continue inflating the criminal pharmaceutical empire but rather to seize the reigns of access to this plant by simply growing it yourself. Work with community members, biochemists, botanists, engineers and so forth to learn what you can do with cannabis and what gifts that it can provide to your community without lending your support to the criminal empire. Invest in cannabis by growing it, using it, trading it and decentralizing any aspect of its gifts!
i bought mjna,erbb and nvlx
how did that work out for you?