Introduction |
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1 | (1) |
About This Book |
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1 | (1) |
Foolish Assumptions |
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2 | (1) |
Icons Used in This Book |
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3 | (1) |
Beyond the Book |
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4 | (1) |
Where to Go from Here |
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4 | (1) |
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PART 1 GETTING STARTED WITH CANNABIS INVESTING |
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5 | (66) |
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Chapter 1 Taking The Nickel Tour |
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1 | (22) |
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Weighing the Pros and Cons of Investing in Cannabis |
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8 | (3) |
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8 | (1) |
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9 | (2) |
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Deciding Whether to Invest in Businesses That Touch the Plant or Those That Don't |
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11 | (1) |
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Exploring Your Investment Options |
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12 | (4) |
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Starting your own business |
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12 | (1) |
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Investing in cannabis real estate |
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13 | (1) |
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Buying and selling stocks |
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14 | (1) |
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Diversifying with exchange traded funds and mutual funds |
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15 | (1) |
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Considering private investment opportunities |
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15 | (1) |
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Finding Investment Opportunities |
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16 | (1) |
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Researching Investment Opportunities |
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17 | (2) |
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Planning Your Investment Strategy |
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19 | (1) |
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Investing in a Cannabis Business |
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20 | (3) |
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Chapter 2 Exploring Cannabis Business Types |
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23 | (16) |
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Choosing Sides: Medical or Adult-Use? |
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24 | (2) |
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Investing in medical marijuana |
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24 | (1) |
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Investing in adult-use marijuana |
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25 | (1) |
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Recognizing Different Cannabis Business Types |
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26 | (5) |
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27 | (1) |
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28 | (2) |
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30 | (1) |
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30 | (1) |
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31 | (1) |
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Considering Ancillary Businesses |
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31 | (8) |
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32 | (1) |
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Banking, payroll, and other cash management services |
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32 | (2) |
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Blockchain and other technologies |
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34 | (1) |
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34 | (1) |
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Grow equipment manufacturers and suppliers |
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35 | (1) |
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Marketing, public relations, and advertising firms |
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35 | (1) |
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Professional employer organizations |
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36 | (1) |
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Pharmaceutical and biotech companies |
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36 | (1) |
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37 | (1) |
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Security services and security equipment suppliers |
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38 | (1) |
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38 | (1) |
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Chapter 3 Understanding The Political, Cultural, And Regulatory Landscape |
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39 | (18) |
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Recognizing the Impact of Laws on the Industry |
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40 | (6) |
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Getting up to speed on U.S. federal law and enforcement |
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40 | (4) |
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Brushing up on state cannabis laws |
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44 | (1) |
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Considering local laws, too |
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45 | (1) |
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Examining cannabis laws in other countries |
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46 | (1) |
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Riding the Waves of Politics and Culture |
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46 | (7) |
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Checking the nation's pulse |
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47 | (2) |
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Debunking misconceptions of cannabis and users |
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49 | (1) |
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50 | (2) |
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Tuning into cannabis culture |
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52 | (1) |
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Accounting for the High Costs of Doing Business |
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53 | (4) |
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Regulatory and compliance costs |
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53 | (1) |
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Federal, state, and local taxes |
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54 | (1) |
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55 | (2) |
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Chapter 4 Sizing Up The Risks And Rewards Of Cannabis Investing |
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57 | (14) |
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58 | (9) |
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Falling victim to con artists |
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58 | (2) |
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Investing in an overvalued company |
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60 | (1) |
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Accounting for dilution risks |
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61 | (1) |
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Weighing the risks of potential commoditization |
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62 | (1) |
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Recognizing the possibility of changes in how federal marijuana laws are enforced |
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63 | (1) |
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Considering the impact of state and local regulation and enforcement |
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64 | (1) |
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Evaluating risks associated with obtaining banking and financial services |
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65 | (1) |
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Anticipating the impact of possible supply and demand imbalances |
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65 | (2) |
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Considering the possibility of business failure |
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67 | (1) |
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Assessing the Potential Rewards |
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67 | (1) |
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Deciding Whether Investing in Cannabis Is Right for You |
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68 | (3) |
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Considering your investment goals |
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68 | (1) |
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Assessing your own risk tolerance |
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69 | (2) |
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PART 2 DOING YOUR HOMEWORK |
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71 | (76) |
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Chapter 5 Exploring Your Investment Options |
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73 | (16) |
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Comparing Public versus Private Investment Options |
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74 | (5) |
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Understanding how companies raise capital |
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74 | (2) |
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Investing in private companies |
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76 | (2) |
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Investing in public companies |
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78 | (1) |
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Investing Domestically or Abroad? |
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79 | (2) |
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Investing in Cannabis or Ancillary Businesses? |
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81 | (2) |
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Buying and Selling Cannabis Stocks |
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83 | (5) |
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Going mainstream with listed stocks |
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83 | (1) |
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Bargain hunting with unlisted, over-the-counter stocks |
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84 | (1) |
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Diversifying with exchange traded funds |
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84 | (2) |
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Betting on an index with exchange traded notes |
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86 | (1) |
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86 | (1) |
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Buying and selling shares of Canadian cannabis companies |
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87 | (1) |
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Investing as a Venture Capitalist |
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88 | (1) |
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Chapter 6 Digging Up Cannabis Investment Opportunities |
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89 | (14) |
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Using Online Investment Tools and Apps |
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90 | (6) |
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91 | (1) |
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91 | (1) |
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92 | (1) |
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92 | (1) |
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93 | (1) |
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93 | (1) |
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93 | (1) |
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94 | (1) |
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94 | (1) |
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94 | (1) |
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95 | (1) |
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Staying Abreast of Cannabis Industry News |
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96 | (4) |
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Scoping Out Opportunities in Exchange Traded Funds |
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100 | (1) |
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Finding Private Equity and Venture Capital Funds and Firms |
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101 | (1) |
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Getting Investment Leads from a Broker |
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102 | (1) |
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Chapter 7 Researching Cannabis Businesses And Stocks: Fundamental Analysis |
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103 | (22) |
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Grasping Fundamental Analysis Basics |
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104 | (2) |
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Researching Any Company You're Thinking of Investing in |
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106 | (15) |
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Assessing the management team |
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106 | (3) |
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Evaluating the company's financial health |
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109 | (2) |
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Evaluating startups and investments in licenses |
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111 | (1) |
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Looking at the company's business strategy |
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112 | (3) |
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Checking out the company's competitive position |
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115 | (1) |
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Checking any insider buying or selling |
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116 | (1) |
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Looking into warrants and convertible securities |
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117 | (2) |
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Following analyst coverage and conference calls |
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119 | (1) |
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120 | (1) |
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Evaluating Cannabis Cultivation Businesses |
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121 | (4) |
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Sizing up the grow master |
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121 | (1) |
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Checking a grower's cost per gram |
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122 | (1) |
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123 | (1) |
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Considering the cultivator's clientele |
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123 | (2) |
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Chapter 8 Analyzing Market Trends: Technical Analysis |
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125 | (22) |
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Comparing Technical and Fundamental Analysis |
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126 | (5) |
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Grasping the principles of technical analysis |
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126 | (2) |
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Weighing the pros and cons of technical analysis |
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128 | (1) |
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Combining the best of both worlds |
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129 | (1) |
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130 | (1) |
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Spotting and Monitoring Trends |
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131 | (5) |
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Examining different trends |
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131 | (3) |
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134 | (1) |
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134 | (1) |
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Looking for resistance and support |
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135 | (1) |
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Referencing Technical Charts |
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136 | (7) |
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Getting to know the different chart types |
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136 | (2) |
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Identifying chart patterns |
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138 | (5) |
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Interpreting Technical Indicators |
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143 | (4) |
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The Relative Strength Index |
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143 | (1) |
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144 | (1) |
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144 | (1) |
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Moving average convergence divergence |
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144 | (1) |
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145 | (2) |
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PART 3 BUYING AND SELLING CANNABIS STOCKS, ETFS, OR MUTUAL FUNDS |
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147 | (54) |
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Chapter 9 Choosing A Broker Or Advisor |
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149 | (12) |
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Defining the Broker's Role |
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150 | (1) |
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Distinguishing between Full-Service and Discount Brokers |
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150 | (4) |
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At your disposal: Full-service brokers |
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151 | (2) |
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Just the basics: Discount brokers |
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153 | (1) |
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Deciding Whether to Fly Solo or Consult a Broker or Advisor |
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154 | (1) |
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Finding a Cannabis-Sawy Broker or Advisor |
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155 | (1) |
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Evaluating Brokers and Advisors |
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155 | (6) |
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156 | (1) |
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Comparing quality and service |
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156 | (1) |
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157 | (1) |
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158 | (3) |
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Chapter 10 Using Screening Tools |
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161 | (16) |
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Searching the Marijuana Stock Universe |
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162 | (3) |
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Getting Up to Speed on the Different Exchanges and Markets |
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165 | (2) |
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Browsing through the Daily Marijuana Observer's List of OTC Cannabis Stocks |
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167 | (1) |
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Checking Out Other Stock Screeners |
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168 | (2) |
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Screening Cannabis Investment Funds |
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170 | (2) |
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172 | (4) |
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First up: The major categories |
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172 | (1) |
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The main event: Specific filters |
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173 | (2) |
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175 | (1) |
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176 | (1) |
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A Few Final Points to Keep in Mind |
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176 | (1) |
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Chapter 11 Placing Buy And Sell Orders For Cannabis Stocks And Etfs |
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177 | (14) |
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Understanding the Bid-Ask Spread |
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178 | (1) |
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Placing an Order to Buy or Sell Shares |
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179 | (3) |
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182 | (1) |
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182 | (1) |
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182 | (1) |
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182 | (1) |
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Understanding the Different Order Types |
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183 | (4) |
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184 | (1) |
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184 | (1) |
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185 | (1) |
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186 | (1) |
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187 | (4) |
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187 | (1) |
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188 | (1) |
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188 | (1) |
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188 | (1) |
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189 | (1) |
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189 | (2) |
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Chapter 12 Exploring Advanced Trading Techniques |
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191 | (10) |
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191 | (4) |
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Registering to buy on margin |
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192 | (1) |
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Examining marginal outcomes |
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193 | (1) |
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Striving for success on margin |
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194 | (1) |
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195 | (6) |
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196 | (1) |
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Taking a hit when the stock price keeps rising |
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197 | (1) |
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Responding when you feel the squeeze |
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198 | (1) |
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Recognizing the ups and downs of shorting cannabis stocks |
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198 | (3) |
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PART 4 EXPLORING CANNABIS INVESTMENT STRATEGIES |
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201 | (46) |
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Chapter 13 Following The Money: Momentum Investing (Aka Speculating) |
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203 | (10) |
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Spotting Opportunities to Buy: Upward Momentum |
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204 | (3) |
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Watching for Signals to Sell: Downward Momentum |
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207 | (1) |
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Following the Smart Money |
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208 | (1) |
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Avoiding Some of the Risks Inherent in Momentum Investing |
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209 | (4) |
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Watching out for the short squeeze |
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209 | (1) |
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Steering clear of pump-and-dump scams |
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210 | (1) |
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Avoiding cannabis stock and industry bubbles |
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211 | (1) |
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Knowing when momentum investing works and when it doesn't |
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211 | (2) |
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Chapter 14 Investing In Canadian Cannabis Companies |
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213 | (8) |
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Deciding Whether to Invest in Canadian or U.S. Cannabis Businesses |
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214 | (3) |
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The pros and cons of the Canadian cannabis market |
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214 | (2) |
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The pros and cons of the U.S. cannabis market |
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216 | (1) |
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Scoping Out the Four Leading Canadian Cannabis Companies |
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217 | (4) |
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Canopy Growth Corporation |
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217 | (1) |
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218 | (1) |
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218 | (1) |
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219 | (2) |
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Chapter 15 Investing In Countries Where Marijuana Is Legal |
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221 | (16) |
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222 | (1) |
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223 | (1) |
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224 | (1) |
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224 | (1) |
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225 | (1) |
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226 | (1) |
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226 | (1) |
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227 | (1) |
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227 | (1) |
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228 | (1) |
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228 | (1) |
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229 | (1) |
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230 | (1) |
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230 | (1) |
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231 | (1) |
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232 | (1) |
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232 | (1) |
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233 | (1) |
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233 | (1) |
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233 | (1) |
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234 | (1) |
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234 | (1) |
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235 | (2) |
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Chapter 16 Minimizing Risks While Maximizing Gains |
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237 | (10) |
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Staying Plugged in to the Industry |
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238 | (1) |
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Investing in the People, Not the Plant |
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239 | (1) |
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Performing Your Due Diligence |
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239 | (1) |
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Trading Cannabis Stocks on Private Markets |
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240 | (1) |
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Investing in the Biggest Markets |
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241 | (1) |
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Diversifying Inside and Outside the Industry |
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241 | (1) |
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Investing in Multi-state Operators |
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242 | (1) |
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Keep an Eye on the ETFs % |
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243 | (1) |
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Invest in Innovative Companies |
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244 | (1) |
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Use Different Stock Order Types to Your Advantage |
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245 | (1) |
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246 | (1) |
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247 | (26) |
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Chapter 17 Ten Ways To Profit When The Market Drops |
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249 | (6) |
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250 | (1) |
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250 | (1) |
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250 | (1) |
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251 | (1) |
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251 | (1) |
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251 | (1) |
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Find Potential Treasures with Bond Ratings |
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252 | (1) |
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252 | (1) |
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252 | (1) |
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Write a Covered Call Option |
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253 | (2) |
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Chapter 18 Ten Reasons Not To Invest In Marijuana Stocks |
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255 | (6) |
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Marijuana Is Still Federally Illegal in the U.S. |
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256 | (1) |
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Marijuana Investment Scams Are Rampant |
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256 | (1) |
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Earning a Profit as a Cannabis Business Is a Huge Challenge |
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257 | (1) |
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Illegal Operations Undermine Demand for Legal Products |
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258 | (1) |
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The Industry Is Very Fragmented |
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258 | (1) |
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Oversupply Is More Likely Than Not |
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258 | (1) |
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Bad News Is Just Around the Corner |
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259 | (1) |
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Marijuana Laws Are Slow to Change |
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259 | (1) |
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Company Shares Are Being Diluted |
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260 | (1) |
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260 | (1) |
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Chapter 19 Ten (Plus One) Criteria For Choosing A Cannabis Investment |
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261 | (6) |
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Experienced and Successful Management Team |
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262 | (1) |
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262 | (1) |
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263 | (1) |
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Comparatively Low Price-to-Earnings Ratio |
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263 | (1) |
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Positive Money Flow Indicator |
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264 | (1) |
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264 | (1) |
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Operations in Other States or Countries |
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264 | (1) |
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265 | (1) |
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265 | (1) |
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Positive Reputation in the Industry |
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266 | (1) |
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266 | (1) |
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Chapter 20 Ten Mistakes To Avoid |
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267 | (6) |
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Failing to Diversify Sufficiently |
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267 | (1) |
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Relying Solely on Online Information |
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268 | (1) |
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Not Performing Due Diligence |
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268 | (1) |
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Believing Federal Legalization Will Happen Soon |
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269 | (1) |
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Failing to Account for Regulations |
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269 | (1) |
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Failing to Consider the Possibility of Bad News |
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269 | (1) |
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Buying or Selling Too Late or Too Early |
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270 | (1) |
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Ignoring Business Fundamentals |
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270 | (1) |
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Expecting All Marijuana Stocks to Be Winners |
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271 | (1) |
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Buying a Stock Just Because It's Cheap |
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271 | (2) |
Index |
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273 | |