The Lemon Fool

So I'd like to invest in the Cannabis/Marijuana business. A lot seems to be happening abroad, i.e. US and Canada. Now whilst I'm aware of firms such as Aphria (TSE: APHA), I'd rather not go through the aggro and risk of the currency conversion for a single firm. What I'd be happier to consider is some kind of Fund or IT which wraps up a whole basket of stocks in such firms, de-risking exposure to any one firm in particular.

Does anyone know of such a fund/IT available to simple purchase in the UK? Or am I clearly stoned out of my mind to even consider the existence of such a thing?

many thanks
Matt

The only one I know of is Sativa Investments. It is listed on the NEX exchange growth market, which is AIMs little brother for early stage companies. So all the warnings about AIM apply with knobs on.

Market cap. £33 million. Share price 6.25p. I don't know any more than that.

I wouldn't dismiss American and Canadian shares. It's not much more difficult to buy them than UK listed shares and the currency risk is the same as owning them via a fund.

I think that it's still a bit early for a fund, IT or ETF.

Things are moving very fast in this area. The IC did a piece on the subject and a podcast. Try a search to find them.
Since then I know a number of tobbaco companys have been investing.

However remember what I said about it being fast moving. The article is 3 months old!
Cannabis is grown*, legally, in this country. However export restrictions mean that it can't be exported except as a processed drug for medical purposes. The same is true as far as I know even for countries who have legalised recreational use.

We really need WTO, UN, INCB and others to wise up in this area. Not just on Cannabis. There is, or was, serious concern about the legal opium supply. Illegally it's grown all over the place, but a bad harvest in one country could produce world wide shortages of the legal stuff considering that the bulk is produced in just 3 countries and only 5 are licenced to produce.

*Would you believe that British cannabis is grown by the company that owns the clothing shop Primark! I'm not sure that cannabis is yet a significant earner for ABF though.

Thanks people...

SalvorHardin wrote:The only one I know of is Sativa Investments. It is listed on the NEX exchange growth market, which is AIMs little brother for early stage companies. So all the warnings about AIM apply with knobs on.

Market cap. £33 million. Share price 6.25p. I don't know any more than that.

Ok - that's a start.

SalvorHardin wrote:I wouldn't dismiss American and Canadian shares. It's not much more difficult to buy them than UK listed shares and the currency risk is the same as owning them via a fund.

I think, seeing I'm still green re. private investing, a fund will hopefully give me some de-risking diversity. I do like doing Company Analysis, but for one or two sectors, (mining is another area I currently view in the same light), I'd rather start with a fund - ideally.

Urbandreamer wrote:I think that it's still a bit early for a fund, IT or ETF.

Things are moving very fast in this area. The IC did a piece on the subject and a podcast. Try a search to find them.

I do have a recent IC mag with the leaf on the front cover. I read it, but yeah, only discrete stocks mentioned IIRC.

Urbandreamer wrote:Since then I know a number of tobbaco companys have been investing.

Indeed...

http://www.imperialbrandsplc.com/Media2 ... -cann.html

Glad I topped up IMB the other month. Will continue to do so!

Urbandreamer wrote:However remember what I said about it being fast moving. The article is 3 months old!
Cannabis is grown*, legally, in this country. However export restrictions mean that it can't be exported except as a processed drug for medical purposes. The same is true as far as I know even for countries who have legalised recreational use.

We really need WTO, UN, INCB and others to wise up in this area. Not just on Cannabis. There is, or was, serious concern about the legal opium supply. Illegally it's grown all over the place, but a bad harvest in one country could produce world wide shortages of the legal stuff considering that the bulk is produced in just 3 countries and only 5 are licenced to produce.

Yup totally agree! And it will happen....quite soon I think...

Matt

TheMotorcycleBoy wrote:So I'd like to invest in the Cannabis/Marijuana business. A lot seems to be happening abroad, i.e. US and Canada. Now whilst I'm aware of firms such as Aphria (TSE: APHA), I'd rather not go through the aggro and risk of the currency conversion for a single firm. What I'd be happier to consider is some kind of Fund or IT which wraps up a whole basket of stocks in such firms, de-risking exposure to any one firm in particular.

Does anyone know of such a fund/IT available to simple purchase in the UK? Or am I clearly stoned out of my mind to even consider the existence of such a thing?

many thanks
Matt

So in effect a joint investment fund.

Charlottesquare wrote:So in effect a joint investment fund.

Exactly!

There’s a boy down the street who cuts me a good deal...

I notice all the previous posts are 6 months or so old, so things have probably moved on since then. I've been pestered by emails from TMF over the past couple of weeks about the phenomenal opportunities in investing in marijuana stocks. They have done a lot of research into this market and they tell me it's unmissable! The research is not free and I haven't paid to read it, but my feelings about them are they are a relatively conservative team, not a get-rich-quick bunch. I'd love to read what they have to say, but I'm not prepared to pay for it! I think it's possibly a bit too rich for me, at my age.
An article in Daily Telegraph recently suggests investing in recreational cannabis might be illegal in this country.
dp

scottnsilky wrote:I notice all the previous posts are 6 months or so old, so things have probably moved on since then.

Sure. I'm still vaguely in investing in this area. The closest that we have in our foli is a holding in IMB and of course their interest in Oxford Cannabinoid.

I've been pestered by emails from TMF over the past couple of weeks about the phenomenal opportunities in investing in marijuana stocks. They have done a lot of research into this market and they tell me it's unmissable! The research is not free and I haven't paid to read it, but my feelings about them are they are a relatively conservative team, not a get-rich-quick bunch. I'd love to read what they have to say, but I'm not prepared to pay for it! I think it's possibly a bit too rich for me, at my age.

I too have observed a lot of noise in this area from my very brief lurkings on TMF. I do worry if there's a risk of them being the next dot com phenomenon. I have the odd email pal in the States, so I may pester them to see what they reckon.

An article in Daily Telegraph recently suggests investing in recreational cannabis might be illegal in this country.

Interesting. Personally I'd take the view that if this available for investment in my ISA then it's A-OK.

Matt

marijuana is the future!

DenBrown wrote:marijuana is the future!

Certainly was when I was in my teens back in the '80s!

However, as an investment strategy, out of interest, can you elaborate on why you rate it so highly?

thanks Matt

North America’s biggest companies have seen their market values lose billions, prompting comparisons to dotcom bust

https://www.theguardian.com/society/202 ... l-business

And a timely word of warning to those who may be tempted:

https://www.youtube.com/watch?v=zhQlcMHhF3w

RC

ReformedCharacter wrote:

North America’s biggest companies have seen their market values lose billions, prompting comparisons to dotcom bust

https://www.theguardian.com/society/202 ... l-business

And a timely word of warning to those who may be tempted:

https://www.youtube.com/watch?v=zhQlcMHhF3w

RC

What the G article states is insane, how on earth can totally legit growers fail to grow as good (if not better) weed as the black market?

Only good reason I can think of is that registered companies have to limit the potency of their "gear" to comply?

Puzzled.

TheMotorcycleBoy wrote:What the G article states is insane, how on earth can totally legit growers fail to grow as good (if not better) weed as the black market?

Only good reason I can think of is that registered companies have to limit the potency of their "gear" to comply?

Puzzled.

I've not read that there are restrictions about potency. And, yes it is hard to believe that registered businesses cannot compete on choice or quality. I can believe though that there have been too many new entrants into the business. I'd guess that there were already sufficient producers to meet (black-market) demand and that therefore new businesses will have to compete either on price or create more demand which may be harder for them to do than their business models suggested.

RC

I have been using cbd for 8 months and its been great!!