How cannabis investing has changed over the last five years
It’s a little embarrassing but we missed our fifth birthday. On April 4, 2014, the first issue of our newsletter was published. It hardly seems possible that it has been five years already. I thought I would share some of the changes that have taken place over what is a reasonably short period of time.
Edition #1 of the Let’s Toke Business newsletter was titled ‘Mary Jane’s Blog Spot’ and was all of 829 words long. This week’s ‘Question of the Week’ feature is longer than that! The Let’s Toke Business name was adopted in week two, Edition #2. This week is Edition #262.
A feature comment in Edition #1 was the announcement that Tweed Marijuana, Inc. (TSXV: TWD) started trading on April 4, 2014 as well. Management indicated trading might commence at $.85 per share. TWED raced to an intraday high of $4.60 before closing at $2.59 per share. TWD was the 4th most active trading 9.64 million shares.
Tweed or TWD would go on to become the leader of the Canadian cannabis industry and along the way it changed its name to Canopy Growth (TSX: WEED) (NYSE: CGC). Canopy’s stock did not rocket up right away so there was lots of opportunity to buy it in the $2.50 to $5.00 a share range. It has since hit a high of $76.68 per share and recently at over $56.00 per share.
Prior to Tweed, most “marijuana” companies were mining shell companies that discovered announcing you were considering going into the cannabis business would give your shares a bump to around $.05 per share and enable you to raise $50,000 to $100,000. After raising some money, many of these companies forgot about marijuana and went back to mining exploration.
The initial bull market in cannabis stocks started in 2013 and ran through to around April 2014. This was a wild and crazy time. For example, the Let’s Toke Business Marijuana Composite Index rose eightfold from December 31, 2013 to an interim high on April 4, 2014. This was unsustainable and the April 4, 2014 high would not be surpassed until September 30, 2016 - 29 months later.
Many people know that April 20th is a special day for marijuana aficionados. It is actually a day of protest when marijuana smokers would gather in a peaceful protest demonstration against laws that made cannabis illegal. Starting with Edition #3 on April 18, 2014, we began to put together a history of 420. See this year’s Let’s Toke Business (Edition #263) for a full historical review.
For Canadians, 2019 will be the first 420 celebration in which smoking marijuana is legal. There are also now a dozen states in which adult-use marijuana is “legal” as defined by state law. This includes: Alaska, California, Colorado, Delaware, Maine, Massachusetts, Michigan, Nevada, Oregon, Rhode Island, Vermont and Washington as well as the District of Columbia. There will undoubtedly still be laws broken as there are restrictions on where you can toke up and most gatherings will be in public parks or beaches.
In the early months, I had to scramble around to find cannabis news of interest to readers. Today, the hardest job is to decide which news items to omit. In the early days, it didn’t matter. Very few people were reading us anyway. Today we have readers in 36 countries around the world and our numbers increase every week.
We hope our little letter is of interest to you and will continue to be worth your valuable time to read it weekly. If you like Let’s Toke Business, we are always on the lookout for readers who are interested in cannabis and investment. If you know of such a person, I would consider it a birthday present if you recommended us to a friend or associate who shares our interest.