MJ Stocks Analysis

[nopancakemix]

Sillylung That's Only a Fraction of the Story
Yes there are "high" taxes but the 80% cumulative total is absurdly high and a false correlation. In CO customers are charged 30% on a purchase. That's a decent price to pay for legally purchase cannabis. I equate it to being wealthy in America and paying higher taxes;
I don't mind the premium I pay on my healthy income because I consider it lucky to live in this great country. In the same way it costs me a little extra to live in an expensive area of town, this is the price one pays for good fortune.

As for the comments about "staying MMJ in WA", sure there are a lot of collectives that want to keep cannabis medicinal. In 2008 when CA had an initiative to fully legalize it was the medical dispensaries who were the most vocal against the bill because they wanted to maintain their exclusivity in the market. Subsequently, as city councils across the state grapple with the proliferation of medical clubs, it is often MMJ shop owners pitted against each other. In LA the city council issued a mandate to close newer shops and who do you think was the most vocal in support of shutting down new MMJ facilities? The older established facilities supported it because it eliminated their competition. Now instead of violence in response to "turf battles", MMJ clinics are using legislation. Crazy.

I'm not saying DTC is wrong, he raises valid points about taxes and some of their effects on the legal markets but to claim that 1/8 of cannabis will cost 2-3x more (or even 8-10x more)mbecause of new developments is not going to happen. Nobody is paying $150-200 for a fully legal 1/8 of weed (as high as $600 for an 1/8 at 8-10x more?!?!!!).

That's just not how legalization works. Black market "drug dealers" make so much money because they can charge a serious premium due to risk. Alcohol prices plummeted in the years following the end of prohibition and the same will happen with cannabis. The market will figure itself out in due time but we're a long way off on tripling or octupulating (real word?) the price of an 1/8.