The document discusses the trading of marijuana stocks following Colorado's legalization of recreational marijuana. It outlines the state's laws for both recreational and medical use, emphasizing the potential for profit in this emerging market as more states consider similar legislation. The document advises caution due to the volatility of marijuana stocks and stresses the importance of thorough research and monitoring in this sector.

1. Trading
Marijuana
Stocks

2. The state of Colorado has legalized marijuana for
recreational use.

3. Is there money to be made trading marijuana
stocks?

4. Technical analysis of these stocks may be difficult
because of small trading volume.

5. But, if other states adopt similar laws, trading
marijuana stocks could be profitable to get in
before stocks surge and get out before they level
off.

6. So, before we look at trading marijuana stocks let
us look at the law in Colorado.

7. Colorado Law
Regarding Marijuana
Use

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

9. Colorado Amendment 64 says that

10. 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.

11. 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.

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

13. It is the potential for profit from recreational use of
marijuana that is of primary interest in trading
marijuana stocks.

14. Medical Use of
Marijuana

15. 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).

16. 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.

17. 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.

18. Trading Marijuana
Stocks

19. When considering how to trade stocks in this new
arena, one should always consider the adage
from the California gold field days of the mid-19th
century.

20. There is often more money to be made selling
picks and shovels than in digging for gold.

21. There are those who will be growing marijuana,
those who will be selling it or potting plants or
seeds, and there are those who will be providing
the infrastructure needed to sell marijuana.

22. Here are a few examples of folks who may make
money in the world of recreation and medical
marijuana:

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

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

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

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

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

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

29. The potential size of the market is probably in the
tens of billions of dollars albeit illegal at the
current time.

30. The estimated size of the legal market in the USA
is a billion and a half and expected to hit two and
half billion dollars a year with use by marijuana
tourists and users coming in out of the shadows.

31. This includes medical use, primarily in California.

32. When trading marijuana stocks remember that
these are small companies and many are penny
stocks.

33. Data for trading may be scare or lacking.

34. They are prone to being pumped and dumped by
initial investors.

35. This may be an arena in which you will need on
site experience and will need to pay close
attention to daily detail.

36. As always do not be afraid to sit on the sidelines if
trading marijuana stocks makes no sense to you.