No. of Recommendations: 9
Hi Fools,

Here's a piece I wrote recently outlining why I'm avoiding marijuana and "crypto" companies, and what I'm looking for that would change my mind: https://www.linkedin.com/pulse/why-im-avoiding-marijuana-cry...

One snippet, centering on why I see low insider ownership with these sorts of companies as a red flag:

Watch for the red flags

When I see a young, fast-growing “buzzword” company with such low insider ownership right out of the gate, I assume:

1. The economics of the business are so terrible, the only way the company can raise cash is by issuing a boatload of new shares (severely diluting shareholders in the process).

And/or:

2. The entrepreneurs/founders behind the company aren’t approaching the business with a long-term perspective.

And/or:

3. The leaders of the business are more interested in making a quick buck than creating a lasting, sustainable business that will thrive for years to come.


Full article: https://www.linkedin.com/pulse/why-im-avoiding-marijuana-cry...

Foolishly,
David K
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