While economic cycles come and go, and the lower end of the leisure market suffers from people having less money for fun when times are tough, the pursuit of a good time and the good life are universal goals. While you may feel alcohol or marijuana is socially irresponsible, it is not for investors or traders. We feel there is no reason to sit on the sidelines and miss out on opportunity. Recognizing that both the present state of poor liquidity and volatility of the Cannabis/Marijuana market in equities is still in its early stages, I have created in early 2014 the 'VR Cannabis Vice Letter' which provides investors, portfolio managers and traders diversification not only covering Cannabis/Marijuana but offering recommendations in the entire 'Vice' sub-sector which includes alcohol, weapons and defense, gaming, big pharma, etc. Was it a premonition that caused me to include VICE along with cannabis? Perhaps so, as it was recently reported that Constellation Brands (STZ) one of the largest liquor companies in the world chose to invest $200 million in Canada's leading cannabis company, Canopy Growth (WEED.TO and TWMJF)?. I can assure you more is on the horizon both from liquor companies and the most likely candidate, tobacco! And, let's not forget about medical cannabis and big pharmaceutical companies looking to get a piece of the pie!
CANNABIS STOCKS DOWNSIDE PRICE LEADERS FOR JANUARY 12, 2018:
RECENT STOCK AND INDEX RECOMMENDATIONS (HYPOTHETICAL TRADES):
There are dozens and dozens of publicly traded cannabis and cannabis related stocks most of which have yet to show revenue profits. In addition, twenty-six states and the District of Columbia currently have laws legalizing marijuana in some form. Three other states will soon join them after recently passing measures permitting use of medical marijuana.
Seven states and the District of Columbia have adopted more expansive laws legalizing marijuana for recreational use. Most recently, California, Massachusetts, Maine and Nevada all passed measures in November, 2016 legalizing recreational marijuana. California’s Prop. 64 measure allows adults 21 and older to possess up to one ounce of marijuana and grow up to six plants in their homes. Other tax and licensing provisions of the law will not take effect until January 2018.
Several legislatures in states recently passing legalization measures are debating regulatory proposals around the use and sale of marijuana. Massachusetts lawmakers are weighing bills that would lower the amount that residents can legally possess or place restrictions on retails stores. In Nevada, one proposal calls for businesses to obtain permits allowing for the public use of marijuana.
A number of states have also decriminalized the possession of small amounts of marijuana. Other states have passed medical marijuana laws allowing for limited use of cannabis. Some medical marijuana laws are broader than others, with types of medical conditions that allow for treatment varying from state to state. Others states (not shown on the map below) have passed laws allowing residents to possess cannabis oil if they suffer from certain medical illnesses.
The medicinal use of cannabis is legal in a number of countries including Canada, Czech Republic and Israel. Entry into coffee shops and the sale of cannabis in Amsterdam there remains permissible to anyone over the age of 18. Cannabis is one of the most widely used drugs in Uruguay - possession for personal use is not penalized and the law does not specify quantity for "personal amount". Mexico just approved medical marijuana in mid June, 2017! Hey folks, the train has left the station. There is no going back.
Not only is 'vice investing' fun, but it can be quite financially sound, especially when timing is correct. Companies that derive a significant portion of their revenues from products or services considered socially irresponsible are covered and traded herein. In the U.S., consumers have an appetite for luxury. And, now the legalization of cannabis for both recreational and medical use has created a new 'gold rush' of investment opportunity. Think about a company name, Altria (MO), the cigarette manufacturer of Marlboro. You heard it here first! You will soon find Marijuana Marlboros on the shelf and you see major liquor companies sell cannabis infused drinks. Get out your checkbooks and get a piece of the action here with the VR Cannabis/Vice Newsletter!
Your Editor/Publisher/Market Strategist: Mark Leibovit Bio:
Mark Leibovit, CIMA, is Chief Market Strategist for VRTrader.Com. His technical expertise is in overall market timing and stock selection based upon his proprietary VOLUME REVERSAL (tm) methodology and Annual Forecast Model.
Mr.Leibovit’s extensive media television profile includes seven years as a consultant ‘Elf’ on “Louis Rukeyser’s Wall Street Week” television program, and over thirty years as a Market Monitor guest for PBS “The Nightly Business Report”. He also has appeared on Fox Business News, CNBC, BNN (Canada), and Bloomberg, and has been interviewed in Barrons, Business Week, Forbes and The Wall Street Journal.
Mark Leibovit was ranked Timer Digest’s #2 Gold Market timer for 2011, and has also been named the #1 Gold Market timer for the 5 year period ending in 2010, and the #1 U.S. Market Timer for 2006 and the #1 Intermediate U.S. Market Timer for the ten year period December, 1997 to 2007.
He was a 'Market Maker' on the Chicago Board Options Exchange and the Midwest Options Exchange and then went on to serve as Director of Research at Freehling & Co. and later Director of Technical Research at Rodman and Renshaw (both in Chicago). Mr. Leibovit now publishes a series of newsletters at www.LeibovitVRNewsletters.com and hosts his own weekly national radio talk show - Wall Street Raw through the GCNlive.com network along with affiliated radio stations. He is both a Certified Investment Management Analyst (CIMA) and Accredited Investment Fiduciary (AIF), and is also a member of the Market Technicians Association and CFA Institute.
Mr.Leibovit’s specialty is Volume Analysis and his proprietary Leibovit Volume Reversal Indicator is well known for forecasting accurate signals of trend direction and reversals in the equity, metals and futures markets. He has historical experience recognizing, bull and bear markets and signaling alerts prior to market crashes. His indicator is currently available on the Metastock, eSignal and TradeStation platforms.
His comprehensive study on Volume Analysis, The Trader’s Book of Volume published by McGraw-Hill is a definitive guide to volume trading. It is now also published in Chinese. Mark has appeared in speaking engagements and seminars in the U.S. and Canada and provides customized Volume Analysis for managers and institutions.
His WALL STREET RAW radio program is heard weekly on GCNLIVE.COM, Saturdays 10 am ET and on Sundays 10 am MT on KFNN 1510 Phoenix.
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