Being a retail investor in the cannabis space is like standing outside of a private concert where you’re not allowed in, but, when the performer has a heart attack on stage, you’re left with the hospital bill.
Most companies rave about their retail investors in their press releases, but only a handful allow them to participate in private placements, blocking them from actually making the serious gains, while exposing them to all the risks.
So why is the system so fucked up?
You Usually Can’t Get In Early
The short answer: companies don’t really care about you unless you can write a cheque with a lot of zeros. But, as you have seen in the news, many companies want fast money and get into bed (**cough Bridgemark **cough MMCAP) with bad people and it ends up ruining them in the long run.
Let’s go a bit deeper as to why this is, and exactly what you can do about it to start making serious gains in the stock market.
With hundreds of millions being raised by hedge funds in the Bahamas, or by crooks in high towers on West Hastings – many companies have looked for the big pay cheques, which often leads to the demise of their share price.
WA few whales owning your stock is the quickest way to raise cash, but it’s risky.
They can short the stock and quickly dump their shares as they make money on the way up, and on the way down. One way to avoid this is to de-risk a company by gaining an army of retail investors.
However, these companies know that retail investors are often the least prepared and knowledgable about the sector and will often buy on the way up while everyone who got in early sell. One of the grave errors newer investors make is buying into strength and selling out of weakness, companies use this to their advantage as they know average Joe is willing to hold the bag for the opportunity to ride the rollercoaster.
One of my biggest pieces of advice to new investors is to get in early, this often best accomplished by knowing people in the industry and keeping your ear to the ground.
How To Get In Now To The Next TGOD
Hemptown has already raised $23 Million pre IPO and is now opening up a private placement to the public. You can click here to find out more information.
Hemptown USA is exciting because its exposure to the US cannabis market. The company is currently growing in over 1,600 acres in Oregon, Kentucky and Colorado in 2019, while projecting a crop yield of up to 3,000,000 pounds in late September 2019. Projected revenue for 2020 currently sits at $204 million as the company will be constantly adding more and more acres as the demand for hemp CBD products continues to climb rapidly.
Here are some of the projections the company has laid out in its pitch deck.
Finding companies that will allow smaller retail investors into their system can be difficult, TGOD was the first large cannabis company to do it, and before their IPO they had around 4,000 retail investors.
The one’s who got in early before TGOD went on its massive run made serious bank. Despite us and many other outlets criticizing TGOD’s execution of its buildout in Hamilton, those who bought in back in 2017 know that the Hamilton facility could have burned to the ground and they still would have come out on top.