No. of Recommendations: 10
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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No. of Recommendations: 2
From avoiding marijuana stocks to being the Marijuana Maverick

:)
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No. of Recommendations: 3
Ha! It has been eye-opening learning about the cannabis industry. Still a ton of froth and hype, but with Canada on the cusp of legalization I think a Foolish, business-focused, long-term approach can finally be applied. We'll quickly know which companies are walking the walk vs. just talking the talk about how great they'll be.

In Marijuana Mavericks we're looking for companies with some sort of differentiated model/strategy, experienced/invested leadership, and healthy balance sheets. It's still a riskier category -- considering track records for these early cannabis companies are minimal at best -- but I'm looking forward to applying a VC approach and investing in a basket of some of the promising early leaders.

Really excited with what we've put together in Marijuana Mavericks. Will be fascinating to watch this category unfold over the next year and beyond!

Foolishly,
David K
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