Don’t Count on Resurrection

You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We no longer send these by email as we did in the past, but we post this and all of the newsletters on our website here.

Friends,

Sunday is Easter, and it is also 4/20 Day. The last time that Easter, the day that celebrates the resurrection of Jesus, was on April 20th was in 2014, just a few months after Colorado became the first state to begin sales of adult-use cannabis. The next time will be in 2087. Many readers will be celebrating their last 4/20 Day on Easter on this Sunday.

Cannabis investors and traders used to get excited about 4/20, but it is very difficult for cannabis investors to get excited about much these days. The term “420” evolved in the early 1970s in California. It became a day to celebrate cannabis consumption. I was well aware of the term when I created my subscription service in 2013 for those interested in cannabis stocks, but I have been regularly surprised that traders and investors get excited by the day 4/20, which does see a spike in demand.

The climate remains extremely negative for the cannabis industry. I was very careful not to get sucked in by the bullishness around the “impending” end of 280E taxation almost a year ago on 4/30, when the DEA revealed that it was in the process of rescheduling. The New Cannabis Ventures Global Cannabis Stock Index closed that day at 11.72, and it closed at 4.73 yesterday, down 59.6%. While our newsletter warned then, we became more optimistic a bit too early.

A month ago, when I wrote an article about PharmaCann failing again to pay rent to IIPR, I heard from an executive at another Cannabis REIT.  The written conversation ended with this:

Folks typically consume financial media to learn to make money. There has been almost none of that for 4 years. I’m suggesting that writing about the few ways to make money in cannabis may interest readers more than the brutal losses that are written about daily.

To him and to all of the readers who want only the positive stories, I pass. I believe that NCV has been objective about the information it has conveyed, and there has been some good news.

Happy 4/20. readers! Enjoy some cannabis, but don’t get overly excited about the stocks at this time. Maybe the cannabis stocks, which are extremely cheap, will experience resurrection, but I am not counting on it. The challenges to the industry go beyond just 280E. We have shared some alternative ideas that could work.

Sincerely,

Alan

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published this past week:

Exclusives

Michigan Cannabis Sales March Lower

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