We know that systemic risk cannot be mitigated through diversification and that is a basic tenet to the concept of diversification. Traditionally, hedging is the tool of choice to mitigate some systemic risk. I would like to put forth a hypothesis that investing in the legal cannabis industry may just be another and here is why.
1. We know from past articles and content (including third party), that this is not another dot-com industry because dot-com was the creation of a new industry whereas this represents the transformation of an existing black market into a legal regulated market for recreational. It is also the creation and development of a new medical market. Cannabis as medicine dates back centuries so using the word “new” is somewhat ironic if not misleading. We also know the centuries of proven success of using hemp in textiles, building materials, food, etc.
This transformation is happening faster in more progressive countries (Australia, Canada, Germany, etc) but also within the USA with states such as California, Colorado, and Nevada leading the way. As a warning and this is something we discuss often – although as referenced above this is not a dot-com industry there are facets of this industry that mirror the dot-com era and these can typically be avoided through due diligence. This includes avoiding some paid stock promoters with their paid newsletters and by steering clear of many social media characters.
2. Medical research on various components of cannabis (including hemp) continue to yield encouraging results. Not only are there signs of success across an array of diseases and conditions but the cost of cannabis tends to be lower than the cost of traditional pharmaceuticals.
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Sudden drastic shocks drew upon the terraforming analogy of science fiction and hence the term “Ecoforming” came into existence. These are terms now used by others because they are succinct and instantly convey relevant meaning.
You may recall when NASDAQ declined the listing request of MassRoots Inc (MSRT). In my article at that time I wrote:
… what makes this even more interesting, if that is possible, is the rationale used by NASDAQ to refuse to list MassRoots Inc (OTC:MSRT). The second last paragraph of that Forbes article is of particular interest and relevance: “However as long as marijuana is federally illegal, neither NASDAQ or the New York Stock Exchange is going to list a company related to recreational marijuana”. Has Ecoforming successfully altered
the ecosystem enough that
this statement is in fact no
longer relevant?
[The link embedded in the
word “rationale” takes you to
the Forbes article referenced].
Here we are in March 2018 and on the heels of the NASDAQ approving the Cronos Group Inc (CRON) for listing. Cronos Group Inc is no stranger to these pages and we introduced you to this company back in 2016 when it was known as Pharmacan Capital Corp. Not only is this a 100% medical marijuana company but it is a Canadian company. Two other Canadian industry heavyweights are looking for a similar listing and they are Aurora Cannabis Inc (TSX:ACB; OTC:ACBFF) and Canopy Growth Corp (TSX:WEED; OTC:TWMJF).
That is the power of Ecoforming!
That is the CannaInvestor Magazine advantage as very few openly challenge articles appearing in Forbes.
Ecoforming has created many new business opportunities that albeit unorthodox have low barriers to entry – such as novelty items.