BUDZ is a marijuana stock. Set California aside for a minute; we’ll get back to it later, public opinion on legalization is changing. All it is going to take is a few more old politicians to die off. All it is going to take is for a few more of the kids these days to actually vote. All it is going to take is a serious look at how addiction works and whether or not we want to continue to have an "opioid crisis," or if we want to allow people to have the freedom to do what they want in a responsible manner. All it is going to take is a few more people waking up to the idea that the War on Drugs is expensive and not something we are going to win. All it is going to take is more local governments realizing how much tax revenue they are leaving on the table to enforce their own morality. All it is going to take is more entrepreneurs and agricultural workers to realize how many jobs are being squandered. Legalization is coming.
On October 30th (2017) I was thinking of investing in BUDZ, but they were nearly literally a penny stock. They were trading at $1.30 on October 30th.
They are what is called an OTC (over the counter) or a "pink slip" stock. Generally these are not good places to park your money as they are risky, volatile, and a good way to lose everything.
They are also fun. For a measly $130 bucks you could have bought 100 shares, but honestly, I would never spend so little. I spend around $7 a trade, so that's like a 5% loss out of the gate, and since I also get hit with a commission when selling, that’s another percentage. Basically, the stock would need to go up like fifteen cents for me to even break even. Like a poker rake, it’s generally better to play at the higher stakes tables if you actually want to make any money. On October 30th I had ~$4,500 sitting in my brokerage account. Realistically, if I were going to move in, I would have moved all in. Feeler bets are for cowards. So I woud have bought 3,500 shares (I don’t buy in odd lots).
Today those shares would be worth ~$47,460. And yes, I would be selling today. I would be taking my money off the table and laughing all the way to the bank.
Yeah, I am kicking myself. I was kicking myself when the damn stock hit $3 (more than doubling your money is never a bad thing).
Now, this stock is on a precipice, and it’s way too late to get in on, so don’t go shoving your chips in on pot odds.
Back to California. They legalized on the 1st of the year for recreational use. They basically said, “Fuck you, Jeff Sessions,” and pulled the trigger. I think this is why you are seeing the spike, and I think this stock will collapse in the coming months. But I could be wrong. Nothing I say should ever be construed as advice on where to put your money. If I knew what I was doing I would have done it.
Woulda, shoulda, coulda.