MJ Stocks Analysis

[nopancakemix]

I'm Just Not Buying It
Current prices at shops are competitive with street values and on a quality v cost basis, the shops vastly exceed what is offered with most black market cannabis. Of course downward pressure squeezes margins but look at the liquor industry post prohibition. During prohibition, alcohol prices clearly had a premium for obvious reasons. After prohibition the prices plummeted yet enormous corporations were still able to develop and thrive as profit margins decline. In fact, today those corporations are among the most powerful in the world, spending hundreds of millions on R&D, acquisitions and other operational expenses with enough leftover to do billions of dollars worth of marketing for a product that pretty much sells itself to consumers. Oh yeah, and there is still enough to spend a few hundred million more in lobbying Congress!

I don't doubt your MJ market experience but I can tell you as someone who made lots of money growing, the current prices generate enough profit. Even after paying rent on the grow house, paying people to help, paying for nutrients, paying for energy, I was still making a margin over 50%.

What I think you are seeing in prospectuses is a new for of greed that has entered the market. Street thugs dress in baggy clothes and use a knife or gun to rob you. White collar thugs dress in suits and use a pen or computer to rip you off.