http://www.profitableinvestingtips.com/investing-tips/beware-of-marijuana-stocks Beware of Marijuana Stocks Now that Colorado has legalized marijuana for recreational use, should you jump in with both feet or beware of marijuana stocks. We are, by the way, discussing investment in marijuana related businesses and not your own recreational use! Is there money to be made investing in marijuana stocks? Fundamental analysis of these stocks is, well, fundamental. Marijuana is legal for medical use in California and New York may also make medical marijuana legal. Colorado is the first to legalize the plant for recreational use but others may follow. Which businesses will be profitable and which will be able to scale up when the opportunity arises? But, before looking at a couple of stocks, here is a bit about the law in Colorado. Colorado Marijuana Use Law Colorado has two sets of laws regarding marijuana. These have to do with recreational use and medical use. Colorado Amendment 64 states: Adults aged twenty-one or older can grow up to three immature and three mature cannabis plants privately in a locked space, legally possess all cannabis from the plants they grow (as long as it stays where it was grown), legally possess up to one ounce of cannabis while traveling, and give as a gift up to one ounce to other citizens 21 years of age or older. Consumption is permitted in a manner similar to alcohol, with equivalent offenses proscribed for driving. Public consumption remains illegal. Amendment 64 also provides for licensing of cultivation facilities, product manufacturing facilities, testing facilities, and retail stores. This law allows for sales of marijuana for recreational use, taxation of profits from these facilities, and various ordinances relating to such establishments. It is the potential for profit from recreational use of marijuana that is of primary interest for those investing in marijuana stocks. Beware of marijuana stocks that do not comply with the law in Colorado.

2. Now that Colorado has legalized marijuana
for recreational use, should you jump in with
both feet or beware of marijuana stocks.

3. We are, by the way, discussing investment
in marijuana related businesses and not
your own recreational use!

4. Is there money to be made investing in
marijuana stocks?

5. Fundamental analysis of these stocks is,
well, fundamental.

6. Marijuana is legal for medical use in
California and New York may also make
medical marijuana legal.

7. Colorado is the first to legalize the plant for
recreational use but others may follow.

8. Which businesses will be profitable and
which will be able to scale up when the
opportunity arises?

9. But, before looking at a couple of stocks,
here is a bit about the law in Colorado.

10. Colorado Marijuana Use Law

11. Colorado has two sets of laws regarding
marijuana. These have to do with
recreational use and medical use.

12. Colorado Amendment 64 states:

13. adults aged twenty-one or older can grow up to three
immature and three mature cannabis plants privately in
a locked space, legally possess all cannabis from the
plants they grow (as long as it stays where it was
grown), legally possess up to one ounce of cannabis
while traveling, and give as a gift up to one ounce to
other citizens 21 years of age or older. Consumption is
permitted in a manner similar to alcohol, with equivalent
offenses proscribed for driving. Public consumption
remains illegal. Amendment 64 also provides for
licensing of cultivation facilities, product manufacturing
facilities, testing facilities, and retail stores.

14. This law allows for sales of marijuana for
recreational use, taxation of profits from
these facilities, and various ordinances
relating to such establishments.

15. It is the potential for profit from recreational
use of marijuana that is of primary interest
for those investing in marijuana stocks.

16. Beware of marijuana stocks that do not
comply with the law in Colorado.

17. Medical Use of Marijuana in
Colorado

18. Colorado Amendment 20 allows for the use of marijuana in the state
for approved patients with written medical consent. Patients may
possess up to 2 ounces of medicinal cannabis and may cultivate no
more than six cannabis plants (no more than three of these mature
flowering plants at a time). Conditions recognized for medical cannabis
in Colorado include: cachexia; cancer; chronic pain; chronic nervous
system disorders; epilepsy and other disorders characterized by
seizures; glaucoma; HIV or AIDS; multiple sclerosis and other
disorders characterized by muscle spasticity; and nausea. Colorado
medical cannabis patients cannot fill prescriptions at a pharmacy
because under federal law, cannabis is classified as a schedule I drug.
Instead, patients may get medicine from a recognized caregiver or a
non-state-affiliated club or organization, usually called a dispensary.

19. Beware of marijuana stocks that focus on
providing marijuana for a handful of people
with rare diseases.

20. This may well be a laudable social goal but
not especially profitable. Too often really
bad stock investments come from really
good intentions.

21. Invest in or Beware of
Marijuana Stocks

22. Remember when checking out new stocks
in a new market niche that more folks made
more money selling picks and shovels
during the gold rush than made money
digging for gold.

23. Here are a few companies that may make
money in the world of recreation and
medical marijuana:

24. GreenGro Technologies sells growing
systems and equipment to marijuana
farmers. Its stock went up fifty percent of
late

25. GW Pharmaceuticals deals with medicines
derived from marijuana. Its stock rose a few
percent at best.

26. Hemp, Inc grows industrial hemp and sells
hemp seeds as food went up fifty percent.

27. MedBox makes high-security storage and
dispensing machines for controlled
medicines. Its stock rose by fifty percent.

28. MediSwipe Inc sells financial processing
systems to the medical industry. Its share
price recently climbed by about 70%.

29. Two California firms dealing with marijuana
for medical use rose in price,Medical
Marijuana Inc. and Cannabis Science.

30. Total market size is perhaps ten billion for
recreational marijuana.

31. However, it remains to be seen how many
illegal users of pot will convert to legal users
and submit to what they may see is
nitpicking restrictions.

32. As always consider the intrinsic value of
stock and beware of marijuana stocks that
do not have a clear forward looking income
stream!