Thursday Leverage Social Capital

social leverage

U.S. equities performed well today as the U.S. dollar retreated and oil rallied. Are we finally breaking out of the recent range? Are the bulls ready to make another run at record highs? The S&P 500 posted a solid gain of 1.05% to 2,063.

Cannabis stocks are not feeling the same bullishness of broad markets. Cannabis stocks need to escape purgatory and that requires serious purging of low quality, capital-consuming cannabis stocks. This requires a broad effort of traders, investors and speculators alike to stop participating in companies that are worthless other than trading vehicles. If your MO is to day trade worthless entities, please take your business elsewhere, this is an industry that is actually trying to be something.

Daily Positive: Yesterday we mentioned the lack of the market’s appreciation for the significance of Illinois. Well today, we learned that American Cannabis Company (OTCQB: AMMJ) won two cultivation and dispensary licenses for one of its clients. Once again, the market is lacking interest.

Daily Negative: We warned about the red flags at Medbox (OTCQB: MDBX). In full disclosure, we did not short the stock. However, the stock has been in free fall pretty much since we raised the red flags. Today was potentially capitulation for the stock, as it plummeted on massive volume. Regardless, issues and uncertainties remain, which is not the recipe for investor confidence.

There are many ways to get involved in the industry and several organizations to support to help improve the odds that the industry will continue to gain political favor. The area that some people don’t consider is the importance of leveraging your social capital around the efforts. Giving money is great. Giving money in a way that raises awareness and spreads the word is maybe even better.

Tonight in Brooklyn we are hosting the first Kannaroke (AKA Karaoke for Cannabis) event, bringing together people who are supporters of cannabis, but may not really know the issues. We hope to educate and inform people, while having a good time and raising money for the Marijuana Policy Project.

We are hoping to bring the issues and talking points to more people as a way to help the movement. There are a lot of opportunities to get involved so be sure to leverage your social capital along the way. Capital is a change agent and spreading the word moves it further.


The discussion above is provided for informational purposes only and does not constitute an offer of, or solicitation for, any investment services or products offered by the author. The author is not making any investment recommendations and the opinions above do not constitute investment advice. Reference to above indices [and companies] is based on information provided by sources the author believes to be credible. Investing in the cannabis industry, as with other industries, presents certain risks including the risk of loss on an investment.

Morgan is a Founding Partner and Managing Director of Poseidon Asset Management. He is the Chief Investor of their Cannabis Focused Fund. Morgan previously worked for a privately owned Registered Investment Adviser and earlier was at UBS Financial Services focusing on wealth management. Morgan believes in the potential of the cannabis industry and likes having an active involvement as it develops. You can follow him on Twitter @PoseidonAsset.

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