A thought on marijuana...

[Scataphagos]

There has been hype and solicitation about "marijuana millionaires, and you'd better get on board if you want to be one".

Well, so far the hype is overblown. Even with the support of bigger companies, the MJ companies have mostly languished.

Suggest keeping an eye on them... on the back burner. As this recession(?) unfolds, you might be able to pick some up for pennies at a later date.

This is hardly making "pot stock millionaires" so far... except for a few insiders, of course.



FWIW...

 

[Baron]

I know a few people in the industry, and the general consensus is that there's just "too many hands in the pot" (pun intended ). In other words, after you've gone through all the red tape and expense of getting licensed, paid for the products on the wholesale level, covered all of your overhead, and paid the various state and local taxes, there's just not a lot of net profit left over.

 

[Scataphagos]

I know a few people in the industry, and the general consensus is that there's just "too many hands in the pot" (pun intended ). In other words, after you've gone through all the red tape and expense of getting licensed, paid for the products on the wholesale level, covered all of your overhead, and paid the various state and local taxes, there's just not a lot of net profit left over.

Just as the government orchestrated.... poor sucker entrepreneur takes all the risk and pays the freight while the government (in one way or another) rakes off most of the profits.

 

[GRULSTMRNN]

... And understandably so. The more illegal the product the higher the risk premiums. To make money in a legit business one needs to identify a niche with high barriers of entry. Did I forget to mention that working hard does not hurt? The MJ business is quickly becoming a commodity almost like running a beauty or massage parlor. When we look back in 10 years I believe we will smirk at the past MJ hype. I never understood the craze among the general public about MJ. What's so special? Just another way to escape the "daily boredom and frustrations" of the lower middle class. "opium to the small guys".

I know a few people in the industry, and the general consensus is that there's just "too many hands in the pot" (pun intended ). In other words, after you've gone through all the red tape and expense of getting licensed, paid for the products on the wholesale level, covered all of your overhead, and paid the various state and local taxes, there's just not a lot of net profit left over.

 

[GRULSTMRNN]

What's entrepreneurial about growing a few plants? You mean "researching new strands"? Lol, reminds me of the coffee and chocolate hype in America when "boutique coffee shops" and small business chocolate makers sold the uniqueness of their secret brews. In the end it turned out to be stink normal chocolate and coffee.

Just as the government orchestrated.... poor sucker entrepreneur takes all the risk and pays the freight while the government (in one way or another) rakes off most of the profits.

 

[tiddlywinks]

from Drudge, 12/27/18

Why CA doesn't have bustling industry it expected...
https://www.latimes.com/politics/la-pol-ca-marijuana-year-anniversary-review-20181227-story.html

Legal MJ industry had banner year in 2018...
https://www.yahoo.com/news/legal-marijuana-industry-had-banner-2018-060708442--finance.html

 

[fan27]

I actually had a stint in the business in the late 80's early 90's. Things were going great until rabbits looking for a snack ate our crop. Of course there was the risk of confiscation given that the crop was grown on land that was not our own. I wised up and moved to operations indoors which let to capacity problems...you can only fit so many plants in a 4 x 4 closet

 

[Overnight]

Scat, the thread title itself is a juxtaposition...When on marijuana, isn't one not supposed to have thoughts? Just go with the flow? Hehe.

As for the industry growing, just wait until the US gubmint releases THC from the controlled substance list. THAT is when the money will hit the fan. They just did it with CBD, which now allows, on the federal level, .04% THC in a product. A small step in the right direction. But it IS in that direction.

 

[SimpleMeLike]

I know a few people in the industry, and the general consensus is that there's just "too many hands in the pot" (pun intended ). In other words, after you've gone through all the red tape and expense of getting licensed, paid for the products on the wholesale level, covered all of your overhead, and paid the various state and local taxes, there's just not a lot of net profit left over.

Baron,

But isn't the weed growers selling their weed to customers legally?

If an owner is growing their own weed, how can they not make alot of money?

I would think the weed stock to invest in is the weed seller that do everything in house.

 

[Overnight]

Baron,

But isn't the weed growers selling their weed to customers legally?

If an owner is growing their own weed, how can they not make alot of money?

I would think the weed stock to invest in is the weed seller that do everything in house.

Growing copious amounts of high-quality weed on the scale needed to feed an industry requires a lot of land and labor, which costs a lot of money. And it costs a lot of money in taxes, licensure, security, supplies, etc. Not to mention, you have to realize that no federally-protected banks will accept marijuana-infused profits into the banking system, because it is still illegal on the federal level. So there are costs involved with laundering that money as well.