By Justin Spittler, editor, Casey Daily Dispatch
7,455% in a month.
That’s how much a little-known investment returned between October 2012 to November 2012.
See for yourself.
That’s what analysts like myself call “going parabolic.” But this high-flier wasn’t a junior gold stock, a tiny uranium miner, or even a cryptocurrency.
It was a company called Medbox.
• Medbox sold marijuana vending machines…
Five years ago, it was the hottest marijuana stock on the planet. But it never should have been.
That’s because the company’s founder used illegal stock sales to inflate its revenues. Its sales were bogus.
Medbox got away with this for a while. But the feds eventually caught on. The Securities and Exchange Commission (SEC) found that 90% of the company’s sales were fraudulent.
In other words, the company was one big scam.
• When investors learned this, Medbox went down in flames…
Its stock plunged 90% in one day.
The company is now worthless.
Its downfall has served as a warning to anyone thinking about investing in marijuana stocks. But let’s be clear about something…
Medbox isn’t the only marijuana scam story.
• Fusion Pharma did almost the exact same thing…
Fusion Pharma was a tiny marijuana company with operations in Denver. It sold steel shipping containers for growing marijuana.
It sounded like a great business. So, investors piled into the stock.
But the company was a farce, just like Medbox. In fact, it also used illegal stock sales to inflate its revenues.
When investors learned this, Fusion Pharma’s stock plummeted. It stopped trading in 2014.
I’m telling these horror stories because a lot of people are itching to get rich off pot. And I can’t blame them.
The legal marijuana industry is booming.
The average marijuana stock more than doubled in value last year. The best ones went up more than 300% over the same period. And that’s just a taste of what’s to come.
Over the next five years, the marijuana market is poised to grow by more than 25% per year. That will make it the fastest-growing U.S. consumer industry since broadband internet went mainstream in the early 2000s.
• This is why investors are champing at the bit to buy marijuana stocks…
And it’s why readers have flooded our mailbox asking how to cash in on the “green gold rush”…
“Seriously thinking about it on a small scale to get my toes wet!”
“I think it has explosive potential.”
“Please send info ASAP!”
Look, I get the excitement. The marijuana industry is being born before our eyes. Opportunities like this are rare. They only come along every decade or so.
Investors don’t want it to slip through their fingers.
But you must understand something before you invest a dime in this industry.
• It’s not easy to make money in marijuana…
You see, there are still a lot of crooks and scam artists in the industry.
But that shouldn’t come as a surprise. After all, marijuana’s been a street drug for decades. It’s only now attracting legit businessmen.
That’s why you need to be careful about which marijuana stocks you own.
And that’s where we can help…
• Last year, I made one of the most important decisions of my life…
I sold most of my belongings. I packed up my car. And I hit the road to learn more about the booming marijuana market.
I’ve come to the front lines of this industry for a simple reason.
Legal marijuana is truly a once-in-a-lifetime investment opportunity.
Early investors stand to make an absolute fortune, but you’ll only strike it rich if you know what you’re doing. And here’s how to stack the odds in your favor…
Don’t fall for hype. If a marijuana stock sounds too good to be true, it probably is. Don’t buy a marijuana stock on a whim or hot tip.
Watch for scams. Like I said earlier, the marijuana industry attracts shady characters. So, perform due diligence before investing in any marijuana stock. Make sure you understand the business model inside and out. More importantly, get to know the management team. If you discover any red flags, avoid the stock at all costs.
Investors who follow this advice will be in the best position to profit from the coming marijuana boom.
January 10, 2018
P.S. Marijuana is the fastest-growing industry on earth. And pot stocks are going through the roof. But as I said above, most people still don’t know the best stocks to invest in.
If you agree marijuana legalization is inevitable and want to become a marijuana millionaire in the biggest pot bull market of our lifetime, then you’re invited to join Doug Casey, Crisis Investing editor Nick Giambruno, and me TONIGHT at 8 p.m. ET for a special online event: the Marijuana Millionaire Summit.
There, you’ll learn about the top 5 marijuana stocks for 2018. And you can attend for free by clicking here.
Today, readers weigh in with their thoughts on the marijuana boom:
As someone who spent 35 years working with teens in mental health, I can tell you that 8 of ten know where to get pot. 4 are actually using it and only Two out of ten are clueless.
While I'm not an advocate of pot use under say 21, I do think the bogyman tactics have increased use. The marvelous tinctures for people with serious illness is not adequately published.
All in all teenagers think we adults are stupid in our grand scheme to stop drug use. Has not worked and won't work. Makes me wonder who in Washington is getting rich by supporting the cartels.
Please continue your excellent work in covering and recommending the companies that produce Marijuana! Legal marijuana continues to cut into the illegal marijuana drug traffic trade and eventually legal cannabis will kill off the illegal marijuana trade for all intense purposes.
The next benefit of this will be to free up the heavy burden of policing and imprisoning all of the people who are convicted of this non-violent crime. The cost benefit to society will be immense as will the tax revenue made from the legal sale of cannabis. The medicinal aspects of marijuana are well documented with new and amazing treatment benefits on the horizon, and for the 'marijuana is a gateway drug', that argument has been discredited now for over 40 years.
To have this once in a lifetime opportunity to be able to invest in what is going to be a massive growth industry for decades, to see the new treatments that will continue to emerge from the cultivation and development of cannabis based drugs and, if all of that wasn't exciting enough, to be able to majorly reduce the strain on over-crowded courts and prisons and then to not only save all of that money but to have the additional windfall of tax revenue from the sale of this substance is incredible.
Then, the cherry on top of the icing, we can make loads of money from all of this! Well, I already have made loads of money from this, but the profits are just beginning. Soon I'll be able to cover my nephew's college tuition, buy my niece a home, take a wonderful vacation and increase my donations to charities. Indeed, please up the terrific work!
I have invested in several marijuana stocks, all Canadian except one. I bought the first stocks mid-summer and the gains thus far have been impressive, with the best stock having tripled, while some others have doubled.
I agree with your assessment that the Feds will be unable to stop this tidal wave of change. Although I don't plan to use any marijuana products personally, I wouldn't rule out using them for medical purposes should I have that need in the future. I also don't use alcohol or tobacco either, but it seems to me that my tax dollars could be better spent policing the responsible usage of legal marijuana (ie. arresting those who drive while under the influence of any substance that impairs their ability to drive safely, whether it be marijuana, alcohol, or any prescription drug or controlled substance) than by trying pin a felony conviction on someone for possessing a joint!!!
Clear the "war on drugs" has failed after spending billions of dollars. Legislating morality has never worked and never will! Legalize, regulate, and tax it. Prohibition created more problems than it solved, the war on drugs has been an international failure, time to go a different direction!
I continue to be baffled as to why there are some very negative remarks as feedback to your opinions. If these people are so at odds with what you are saying, why do they continue to read your stuff? They can do what some have done on my Facebook page. They have simply unfriended me!
As always, send in any questions or suggestions for the Dispatch right here.