31
It is due diligence including ongoing monitoring that allows the successful Retail Investor to remove much of the “confusion and uncertainty” and navigate the “minefield” that Nic Easley warned of. Tetra Bio-Pharma Inc’s (TSX:TBP; OTC: GRPOF) homepage best encapsulates the fact that the green rush is not only anything but the dot.com era repeated but is actually suitable to any investor so long as due diligence is undertaken:
What was once an unregulated industry is now at the forefront of venture business activity in North America. Massive market potential and large profit margins make the cannabis industry an attractive asset for any investor to add to their portfolio – but with any new industry, comes confusion and uncertainty.
LESSONS LEARNED FROM THE DOT.COM ERA & AVOIDING PITFALLS
⦁This is not another new economy but rather it is the black market slowly transformed into a legal market valued by some to be in excess of $50 billion in the USA alone. But yes, as referenced within this article by example (Fusion Pharm Inc), there are those individuals who may be running fraudulent companies and others will simply fail consistent with the Consolidation Curve. Due diligence weeds them out!
⦁Have past issues of CANNAINVESTOR MAGAZINE on hand as you undertake your due diligence as each issue has articles instrumental to the successful Retail Investor. Each issue has articles written by different writers to assist.
⦁Know when to open and exit positions. The top 20 short term and long term lists in each issue of CANNAVINVESTOR MAGAZINE should be a starting point and don’t forget the list of stocks to watch. For many, those lists are all that is needed.
⦁Diversify may be key: by sector (medical marijuana, hemp, producers, pharmacies, technology, and so forth); by geography (different States or internationally); etc. If internationally, be sure to understand what is legal and what is not. For example, store front dispensaries in Canada are illegal yet some are advertising investment opportunities including franchising.
⦁Continuously monitor your portfolio including important news about the companies in it and about the industry itself (including ballot measures and the election). In late September, a study from Mexico demonstrated a dramatic reduction in seizures in epilepsy involving using medical cannabis. A study published in Molecular Cancer Therapeutics found that cannabinoids could play a role in treating one of the most aggressive brain cancers in adults.
⦁Invest in the team. Proven leadership with breadth and depth is cornerstone to executing a successful business plan and adapting as needed because they also know Ecoforming can and will dramatically alter their landscape.
⦁Full analysis of Financial statements is critical. The notes to the Financial statements are often more important than the actual numbers. Look for concerns threatening the company as a going concern; toxic financing; fully diluted verses issued/outstanding market capitalization; contingent liabilities; legal and regulatory obstacles, and so forth.