High-flying and volatile cannabis stocks have caught the attention of both the Main street and Wall Street this year. Recently, Canada became the second country to legalize recreational cannabis and Michigan joined nine states and Washington, DC, in allowing full use of marijuana.
Money manager Ken Mahoney explains why 'pick-and-shovel' companies are a great way to take advantage of the opportunities that cannabis brings while avoiding the volatility of weed stocks. High-flying and volatile cannabis stocks have caught the attention of both the Main Street and Wall Street this year, especially as Canada and the Michigan have recently legalized the recreational use of marijuana. While traders are embracing the opportunities of the "green rush," they should be aware of the high volatility of pot stocks, said Ken Mahoney, CEO of the New-York based Mahoney Asset Management.
Mahoney, who offers clients retirement solutions, says his experience shows smaller investors always end up in the wrong direction when a new concept comes to the market because there's always a high level of uncertainty.
So, instead of buying individual cannabis stocks such as Tilray , Aphria , Cronos Group , Aurora Cannabis and Canopy Growth , Mahoney recommends using a "pick-and-shovel" strategy, which involves investing in the underlying technology needed to produce cannabis, rather than in the final product. According to Mahoney, most weed stocks are new to the market and don't have a record of revenues and profits to support their "outrageous valuations.
Ticker: IIPR. The first marijuana-related real-estate firm to be publicly traded, Innovative Industrial Properties IIPR provides real-estate solutions and capital for the medical-use cannabis industry.
With big bank and direct equity investments hard to come by due to strong federal laws and regulations, IIPRs sale and leaseback option is becoming increasing popular in the industry. It currently runs over 10 properties and has more than half a dozen growers in operation. Ticker: SMG. A manufacturing firm with a year history.
Scotts Miracle-Gro offers fertilizers, plant foods, seeds, soils and pest controls. Coupled with the recent law changes in Canada and some US states legalizing marijuana, its hydroponics business, which is the process of growing any plant, including marijuana, has been improving.
SMG has more than 1, retail locations spread across major legal marijuana states in the US, so any soil, fertilizer, pest control, or even simple gardening products bought will most likely fall under the SMG brand. Ticker: GWPH. A British bio-pharmaceutical company recognized for its use of cannabinoid-based drugs for medical treatments. In , one of its products was approved and used in the UK to help treat multiple sclerosis. But more recently June , here in the United States, it was the first drug-maker to be approved for a cannabis derived drug by the US Food and Drug Administration.
Ticker: KSHB. The parent company to Kush Supply Co, a sales and distribution outfit that has become the United States' largest distributor of packaging, supplies, and vaporizer products in the marijuana industry. KushCo doesn't deal with cannabis directly, and instead provides nearly everything else.
From packaging to compliance and marketing to gas canisters it handles everything behind the scenes, so its clients can focus on growing the best marijuana. KushCo holds first mover advantage and pricing power in this niche market, but like most of these stocks we are relying on the fact marijuana sales will skyrocket following less legislation and increased popularity. It also must be noted, KushCo is ticking along at a significantly cheaper price than other stocks mentioned in this piece.
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In the spring ofa fellow named Samuel Brannan was about to become the first millionaire of the California Gold Rush. Nor would he ever mine for gold. Whwt, Mr. Brannan became wealthy by supplying the California Gold Rush with literal picks and shovels. And, in doing so, he went down in economic history.
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Add shovel to one of your lists below, or create a new one. A frog in my throat: talking about voices. Definitions Clear explanations of natural written and spoken English. Click on the arrows to change the translation direction. Follow us. Choose a dictionary. Clear explanations of natural written and spoken English. Word Lists. Choose your language.
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Add shovel to one of your lists below, or create a new one. A frog in my throat: talking about voices. Definitions Clear explanations of natural written and spoken English.
Click on the arrows to change the translation direction. Follow us. Choose a dictionary. Clear explanations of natural written and spoken English. Word Lists. Choose your language. My word lists. Tell us about this example sentence:. This is a good example of how the word is used. The word in the example sentence does not match the entry word. The sentence contains offensive content.
Cancel Submit. Your feedback will be reviewed. C2 a tool consisting of a widesquare metal or plastic bladeusually with exampel raised sidesattached to a handlefor moving loose material such as sandcoalor snow.
Should I put another shovelful of coal on the fire? You can also find related words, phrases, and synonyms in the topics: Machines - parts.
Measurements of volume: informal. Would you give me a hand shovelling the snow away from the garage door? Removing and extracting. Idiom shovel sth into your mouth. Sally is outside shoveling snow away from the driveway. Examples of shovel.
Bonfires and rusting shovels look quite different, but the underlying mechanism that produces them is exactly the eample oxidization. From Cambridge English Corpus. The libretti list a ' ballo wbat stonecutters with hammers and chisels around the statue' and a ' ballo by restorers with shovels and hoes'.
These examples are from the Cambridge English Corpus and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors. Too often the popular misconception has been that council operations are typified by workmen leaning on shovels. From the Hansard archive.
Example from the Hansard archive. Contains Parliamentary information licensed under the Open Parliament Licence v3.
Finally, aid must be provided in a way that gives those economies a long-term future, rather than shovelling money for no proper purpose. They provided a method of proceeding against persons who shovelled garbage into harbours.
In most cases this is done, although sometimes the fireman has to be employed on his task of shovelling in coal.
They were shovelling money abroad because they could make a faster buck there than by investing in this web page people of this country. Are 20 or 30 people to take picks and shovels and set out bitcoin emp after to happens what an do it?
They borrowed picks and shovels, in the dark. Now he has to fight him with pickaxes and shovels. They were shovelled by agreement of the parties in thousands into certain divisions arbitrarily chosen with which shovwls had no shvels. However, these days pupils are shovelled out of the school building as soon as the ink has dried on the examination papers.
We have mobilised bulldozers, scrapers and shovels for open-cast mining. Any modern doctor will readily agree that food shovelled down children's mouths loses a substantial portion of its shivels. See all examples of shovel. Translations of shovel in Chinese Traditional. Need a translator? Translator tool. What is the pronunciation of shovel? Browse shove sb. Test your vocabulary with our fun image quizzes.
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How to Avoid Risky Biotech Stocks: Picks and Shovels Companies
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Gardner: Awesome. Micheal writing in on Twitter. But some cryptocurrencies, particularly those that meet my COINN criteria, described below, have excellent long-term prospects. All Rights Reserved. He has contributed as an advisor on capital markets to the U. Let me explain my position a little more… One of the most familiar metaphors on Wall Street is the distinction between gold miners and those who supply the gold miners with the picks and shovels needed to. Neither ARM nor Imagination are still listed. Read More. Gluckman circled back to Project Concord, noting these aspects of decentralization, "throughput," "high trust security," and "scalability" for these large players. Thirdly, it will have a strong balance sheet so there are no what is the picks and shovels example for bitcoin about debt, and a cushion to take the company through any temporary recession. Meanwhile, all of the miners — both rich and poor — need equipment and supplies. Bush: A couple of weeks ago I was with a few of my friends -- there are four of us -- and I was like, "Guys, let me show you something really quickly.