Tag Archives: investing

How To Make Money On Legal Marijuana

pot

Faithful Readers,
We thank your for all your recent support by visiting this blog and hope you will keep it up…we promise to keep writing if you do. Today we want to talk about how to make money…a lot of people hate money but want it. They blame one percent of everybody else for taking their money…this may well be true but there are ways to get your cash back, legal ways in case anybody from the law enforcement community perked up their ears when they saw this title.
First, we have the legislation from the FED last week which allows banks to fund pot growers in legal states…this is the biggest read-between-the-lines green light that the USA could get as regards the future of our fav weed. People make livings from it and raise families here. They buy new cars and lighting systems, soil and pots. They put money back into the economy and they have hope in their eyes. They are not waiting for a pension and know they have averted the dead end that most young people find themselves facing these days when thinking about a ‘career’…what a word!
But you do not even have to grow it or smell it or even touch it to make money. You can buy stocks through your favorite brokerage which will put you in the pot business, more or less. But how to make moey? Buy low and sell high is the logic.
At this point the stocks sell at incredibly low prices, like 3 or four shares for a dollar. The first such stock we cashed in on was Medical Marijuana Inc (MJNA) which is kind of a stinker and we are happy we got out with our pants on that one but we did make a few hundred dollars. When we first heard about it, Bruce Perlowin, the Prince of Pot, was at the helm. It looked like a good thing and Perlowin talked it up on CNBC but jumped ship and now runs HEMP, Inc (HEMP). Due to his dodgy ways we do not recommend either one of these but prefer to stick to rowlife, Inc. (PHOT) at this time…
Growlife, Inc., the indoor lighting/hydroponic/cash-lending-to-growers conglomerate is our new favorite and they stand more to gain than any company from the FED decision to allow mariuana lending.
They have been buying up major growershop chains and were the first company to announce that they would lend money to new grow operations to get set up. All summer long it languished at under five cents a share as we told everybody we knew to go and buy some. Now it is at forty cents a share and that represents roughly a 1400% gain on your money in the six month period from today back to August 18, when it was three cents a share. Compare that to the dismal 1-2% return on a 15-month CD!
Of course, playing with penny stocks is like playing with fire but the idea is to buy a bunch when it is at a low point and sell a portion when it hits a high – a large enough portion so that the remaining shares are yours for free. It is still at a price where you can do that
This is new industry. Do you realize how rare a new industry in the USA is? What was the last one…computers/internet services? Was that a money-maker for those who got in early? As of December 2103, Growlife has a former Microsoft/Yahoo! executive running operations and some other high-tech moneyed names are also lurking in the background. There is a lot of cash to be made here. Of course money is evil but you need money to live.
Live is evil spelled backwards.
If the ‘one percenters’ are taking all the money, why not grab a few crumbs as they flake of the sides of the monopoly money stacks. Why let them make all the money and complain?
So while we do not promote rich pigs running our lives, we do like to pick their pockets and when we see them piling onto something, we look for loose change on the ground…morepot

This is a free blog so do not look at the typos…

Advertisements

Leave a comment

Filed under business and finance, essays, news, related subjects, Uncategorized

My Stock Blog Redux ~ DOW, DNN, SD, HERO, MPEL

     Kind Readers,

     No, we are not dead.  We are still dealing with the mysteries of the PC and why we can no longer load photos on here the way we are supposed to, as well as other matters of universal importance.

     After our last stock blog, you probably thought us to be insane.  All the stocks we listed went down.  Well, if you look further, you will see that the whole market went down and not just in the USA but all around the world.  What this does is to create a ‘buying opportunity’.  When quality stocks get low in price, you do not sell them, you buy them from idiots who think they are not good, based on their perception of performance.

     The market has turned from Bear to Bull today and a rising tide lifts all ships.  That is an expression Mark Haines used to use a lot.  He was a morning commentator on CNBC and died yesterday at age 65.  CNBC tells you what they want you to hear but Haines was a regular guy and went for the cheap jokes a lot. We will miss him.

     So let us take a look at the damages.  The first stock we mentioned was Dow Chemical (DOW), which was around $40 a share when we told you about it.  At the moment, it is up .95 cents at $36.05, digging its way back up from the correction.  DOW is the least of our worries and we almost wish it would stay low until the end of June, so that we get more shares when the quarterly dividend is paid out.  Watch for it to keep climbing, though.  Now India has drought that threatens to make cotton even more expensive and DOW has the answer to drought.

     Hercules Offshore Drilling (HERO) was $6.10 a share when we told you to buy it.  It took a dive but always held above that six dollar mark, like a winner.  Since then, Obama has turned around on American oil and natural gas, so expect these oil service companies to thrive.  At the moment, it is at $6.43 a share, up almost 5% for the day.  It will keep going up but even if you had only bought a thousand shares and sold them now, after three weeks, it would still get you a $330 profit…but that is small potatoes as you will see in days to come.

     Similarly, Sandridge Energy (SD) is up to $10.88, also showing around a 5% gain today.  We did not tell you about this one yet but now is the time to buy.  We own it.

     The casino group Melco Crown Entertainment (MPEL) took a dive, too, but is up almost 7% today on active trading. It is at $10.64 and it was $10.63 when we told you about it so, if nothing else, it held firm while many stocks floundered and continue to do so.  This one is going to really take off later in the year.  Their most recent yearly report, issued last week, shows that MPEL has swung to a profit, after posting losses for a number of reporting terms.  It was not much of a profit, a penny a share, but it repressents the swing from losing money to making money, which is what it is all about.  They crossed the threshold and are ready to rock.

     Speaking of rocks, look at Denison Mines (DNN).  It is holding its own, considering the badmouthing and backsassing that uranium mines are getting these days.  It is at $2.12, down .07 cents from when we told you about it but this is a long term play and an entry level of $2-something is excellent.  Uranium and other raw materials will be needed to help build the new world intrastructure, no matter how dangerous people think nuclear power is this month.  The fact is that nuclear energy is never going away, so invest in it while it is cheap and get some oil stocks to carry you until we are past the use of fossil fuels.

     Added May, 26, 2011 3:13pm EST

     We are adding this note to point out the significance of Sandridge Energy (SD). At this time, the price per share is $11.97usd.  If you had bought it yesterday, when we said it was up to $10.88, and sold it today (at today’s high of $12.13) you could have shown a profit of $1250.00 in 24 hours on a $1,088.00 investment.  That is about a 13% gain overnight…try making that percentage on a CD!!!

2 Comments

Filed under business and finance, news, related subjects