We don't think anyone should invest in just one company, you should have a diversified approach to investing in the Cannabis sector. A mix between growers and vertically integrated companies is probably the best approach. In the new year, we will update our site with some additional companies which are services oriented, they should do really well next year.

We have a watch list on our site which was created in the summer and needs to be updated, but you can view it here...

www.investinmj.com/stock-watch-list-portfolio

We plan on updating it by next week so you may want to look at it then, or subscribe to our free news letter to get additional information on the companies and the sector in general. As we have suggested in the comments below, there is probably no rush to get invested as many of the stocks will remain flat for awhile until we see more excitement come back into the sector. But now is a great time to research the companies and start building a longer term portfolio for a buy and hold.

Actually there are quite a few opportunities in the US market, even with growers. We are speaking with 2 companies right now which will be raising capital in the next month. One is in Washington State and the other is in Illinois. There will be no shortages of investment opportunities in every State in the US which as legalized medical MJ. Since the final product is not allowed to be sold across State lines, every state will have the need for growers and dispensaries. There is a huge opportunity for a whole new industry to open up, only if the US Federal Gov't would get on board and the DEA get out of the way.

The money that is being raised via Private Placements are for accredited investors, so the average retail investor won't be able to participate in them. However, there are some companies listed on the OTC in the US and several companies in Canada which are gaining US exposure, they may be the best for retail investors at the moment.

If you are going to invest in this sector, look for companies who are generating revenues or will be in the near future. Stay away from companies who are looking to enter the space and applying for a license and focus on ones that are already licensed to produce.

Regards

At the moment we aren't aware of any tax implications besides regular capital gains to be paid on any normal investment profits. However that is not to say the IRS won't flag investments in growers, similar to being on the DEA's watch list like this article states back in Oct....

finance.yahoo.com/.../...interested-110809730.html

We have spoken to many people and investors in the industry and it would be tough for them to pursue and prosecute investors since many banks and brokers are already raising capital and allowing for investment transactions. Plus there are many politicians and their family members getting involved in the industry, so the chance of any prosecution or investors is slim.

However, I would suggest speaking to your accountant and lawyer first and get legal professional opinions before investing in actual growers. The vertical market for integrated products and services should be fine since they are not actually doing anything with the actual plant.

Hi Tracey, glad to see your interest in the #MJ sector. Actually most of the stocks are NOT hot right now, in fact many of the companies are down 80% from their peak back in March. However the sector is basing now and it’s probably a good time to evaluate the companies, see which ones are or will be creating revenues near term and slow pick away for longer term holds. As for individual stocks, we save most of the company evaluations and recommendation for our subscribers. I have been warning them from August that most of the stock prices will come down and that year end selling is a good time to buy… and we sure are getting some bargains now compared to 9 months ago. You can start looking by looking at some of the Canadian licensed growers, their stock price and charts at http://www.investinmj.com/directory/growers. However, I really like companies who are vertically integrated into the sector that are offering services and products, they should also do really well over the coming year. Merry Christmas.