I WILL TELL YOU WHAT IS BAKED IN
I have seen a lot of ridiculous arguments on this message board, but the silliest one I have seen thus far is that everything positive that may happen in the future is already baked in
Are cans of Major Hemp Brown Ale also baked in?
Are sales in multiple states also baked in?
Is national distribution also baked in?
Is an acquisition by a craft brewer who wants to get in on the cannabis-infused beer craze baked in?
Of course not
None of these things are already baked in — future certainties can legitimately be said to be baked in, but future uncertainties are NEVER baked in because that is the exact opposite of the very meaning of the phrase “baked in”
Of course when dealing with any stock, certain things are already baked in — due to the extremely difficult regulatory environment surrounding the production and distribution of Hemp-infused Beer, here is what is currently baked into SIPC’s current price of .03:
Strong doubt about SIPC being able to put Major Hemp Brown Ale in cans
Strong doubt about selling Major Hemp Brown Ale outside of Colorado
Strong doubt about Major Hemp Brown Ale becoming a national brand
These baked-in doubts are why SIPC is only trading at .03
It is important to note that all craft beermakers that have made it, like Sam Adams, started out with the same list of doubts, so these are typical doubts one sees with any startup craft beer company
The difference between SIPC and a private startup craft beermaker is that its doubts are playing out in the public domain instead of in the secrecy of the private sector — which gives all of us the possibility to have a public debate about those doubts on this message board
If the above 3 doubts didn’t exist, SIPC would most likely be trading in the .20-.30 range right now
Now that’s my list for stock-specific doubts
Here is my list for sector-specific doubts that are currently baked into the current price:
Hemp Legalization will not happen because it has been illegal for 81 years
Hemp Legalization will not happen because it is a form of cannabis and Republicans aren’t ready to legalize any form of cannabis
Hemp Legalization will not happen because it is not in the House’s version of The 2018 Farm Bill and therefore won’t wind up in the final version that Trump signs
Hemp Legalization will make it into The 2018 Farm Bill, but it won’t be signed by Trump into law
Those sector-specific doubts, coupled with the lack of awareness in the prospective investing public of the heavily favored probability of Hemp Legalization this summer, are all baked into SIPC and why it is only trading at .03 right now
— — —
For every doubt that gets removed, SIPC’s future prospects will obviously improve, SIPC will become a better investment for the rest of 2018, and SIPC’s stock price will have nowhere to go but up from here
I am betting heavily that SIPC begins to remove these stock-specific doubts, one by one, starting this summer
I am also betting heavily that sector-specific doubts regarding Hemp Legalization will immediately evaporate after Trump signs The 2018 Farm Bill and Hemp Legalization into law in the July/August timeframe
And at the same time, I am betting that the national media attention surrounding the signing into law of Hemp Legalization by Trump will attract a consistently increasing stream of new investors interested on cashing in on the Hemp Gold Rush, naturally leading into a bona fide Hemp-specific Mania
So I really like SIPC at these levels and will continue to accumulate
Sleek
