CIIX ON SEEKING ALPHA !!!
Chineseinvestors.com, Inc. (OTCQB:CIIX)
The final company on the list differs from the others in that it offers direct exposure to a marijuana grower. At the core of its operations, Chineseinvestors.com provides Chinese language real-time market commentary, analysis and educational related services, mainly through the web. On February 12, however, the company announced it had entered into a new business venture with Medicine Man of Denver, one of the first businesses in Colorado to be granted a recreational use license for growth and distribution of Marijuana. Chineseinvestors.com's role in the new venture will be focused on the development of licensing protocols alongside development of the company's harvest process.
According to an interview shown on NBC, which you can see here, the owners of Medicine Man are attempting to turn the current marijuana production process into an industrial operation. The company's goal is to create a national chain of marijuana growers/retailers if, and when, other states follow the lead of Colorado and Washington. By establishing a scalable supply and distribution platform, Medicine Man can ensure its first mover advantage in other states. Analysts are promoting the company as having the potential to become the "Costco of marijuana."
Chineseinvestors.com offers investors direct exposure to the marijuana retail industry, through its partnership with an established, reputable retailer, with the potential for nationwide expansion and exponential growth as other states pass recreational marijuana laws.
The risks associated with Chineseinvestors.com are a combination of those mentioned in the other sections, plus a couple unique to the company. Its stock has risen in line with that of its peers, inflating 130% since the beginning of the year, suggesting a short-term correction could be due. In addition, the company offers exposure to the retail side of the industry, which will put it in competition with the numerous independent retail outlets also licensed in Colorado. Finally, the company has just 5.97M shares outstanding with a float of 5.32M. Tight share supply could serve up extensive volatility in the value of the company's stock, and in turn, the holdings of any early investors.
