CANNAINVESTOR Magazine October / November 2016 - Page 33

QUICK REVIEW OF PAST REFERENCED CASE STUDIES AS WELL AS COMPANIES REFERENCED IN THE RETAIL INVESTOR ARTICLES.

How do these nine companies measure up to the basic tenets (refer to the August issue page 25) of investing in this industry? Please review each company in full on your own before making any consideration as you and you alone are responsible for any investment decision that you may make. Here is an example taken from the above table:

Tinley Beverage Company:   

⦁Proven management with years of experience in the beverage and alcohol industries. 

⦁Flagship Hemplify drink on sale in stores and online and was listed recently as the only beverage in a top 5 Hemp food/beverage list.

⦁Unveiled on September 30 their unique line of THC beverages that will not only appeal to recreational users but also to many medical patients (who do not want to smoke, vape, or cook/bake).  Can be produced and sold under license in any jurisdiction where it is legal to so and by legal manufacturers/distributors.  This turnkey initiative minimizes risk to the company while producing a royalty driven revenue stream.

THE CANNABIS INDUSTRY AND THE PREPARED RETAIL INDUSTRY.

A September 30 article titled “2016: The Year of the Marijuana ‘Dot Bong’ Bubble” appeared on moneymorning.com and summarizes the valuation of the industry as follows:

⦁Bank of America as well as Merrill Lynch estimate the legal cannabis industry to be grow to $35 billion per year by 2020 and that many experts see it as potentially becoming, in time, a $150-$200 billion industry.

⦁Michael Robinson, a former member of a Silicon Valley venture capital firm stated that he was going “all in” in legal cannabis and stated succinctly “On November 8th, a historic number of states are set to vote in a single day on a new marijuana legislation” and how “average Americans from naval veterans to former bikini models, and even Nuns and Rabbis are buying stocks in marijuana companies …”

⦁Because no fewer than 44 companies have had their stocks experience 1000% gains in recent years, there is indeed those “dot.com” era comparisons and the inevitable question “is this green bubble about to burst?” …the response to this question from a veteran of venture capital …. “You ain’t seen nothing yet”.

I had completed writing this article before the above appeared on moneymorning.com but given its relevance, timing and conclusion, I felt its inclusion affords that one more level of comfort to you, the Retail Investor.

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