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2018-10-11 07:00 by Karl Denninger
in Market Musings , 108 references Ignore this thread
If You Buy Weed Stocks....
[Comments enabled]

.... you should consider investing in this as well.

You're going to need it, IMO.

These stocks are ridiculously overpriced and they will crash.  When they do you're going to want one big fat bong-riff, right here and now, to make up for the loss of value in your portfolio.

Don't get me wrong -- the legal cannabis market for both CBD (doesn't get you high) and THC (does) based products is real.  It's going to expand like a big fat bong riff in your lungs but price is always the issue with any investment.

Simply put the market isn't that big and shifting it from illegal marijuana sales to legal cannabis sales channels can't possibly result in enough revenue and thus profits to justify these valuations.

No way, no how, no matter what you do.

I'd like the idea of buying some PUTs on these companies except that their implieds are quite unfavorable and thus the POTential gains are not what I'd like.... after all these firms are not likely zeros -- just way, way overpriced.

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