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Investing in Cannabis

jagermeister

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Resurrecting this old thread. Funny, as I started it almost exactly two years ago.

My long term investment plan is currently in a great place and so I’ve recently got back into the short term trading idea. The other night I downloaded an app called Robinhood, which is a free e-trading app that links with your bank account. So far, I like the interface. After doing a fair amount of research (hours actually, stayed up way too late going down that rabbit hole lol)... I purchased 50 shares of OrganiGram (OGI) and 25 shares of Aphria (APHA), both being companies involved in the marijuana game and have a fair amount of upside. According to several sources, 2020 could be a solid rebound year for weed. So I’m messing around with it and was curious if anyone else has done the same since this topic last came up.

This has also got my wheels turning about Tesla. Their current price is about $700 per share, so that’s an expensive pill to swallow, but projections say they could be $1500 to $15000 per share in 5 years. The way battery power and electric motor technology is going, I see a tremendous amount of upside in the realm of electric automobiles. Anyone care to share an opinion on this?
 

Chass

Active Member
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The Hills
Tesla is a huge gamble, just look at the EPS. That's a huge price tag for a company that's not profitable with the hope that itll become profitable and not just hype. Personally I'd need to put money there. On top of that theres no dividend which is completely wild.
With the weed game, I did read somewhere that someone mentioned to Trump about the banking issues the legal weed businesses have and that he was unaware of this so there could be changes there soon, we will see. Till then that's another gamble for quite a few reasons. It's not as easy as just growing the weed and shipping it. Theres licensing, testing, real estate, just tons of variables that can shut these businesses down in their tracks. And they're already extremely volatile just like tesla.

I tried my hand at short term trading, it's tough, it drives you crazy. Without a lot of money to play with it makes it nearly impossible unless you're trading for free which let's face it, yours never really trading for free. Then you have taxes, which are completely different for short term trading. I've switched back to 100% long term investments in strong businesses/markets and gotten back all my losses from my short term experiments and thenTesla.

To me 8% yearly with a 3-5% dividend is plenty as i dont see myself closing my positions for decades. If you wanna gamble, stick to vegas. Cause there are massive groups of players that arent gambling on the market with these volatile stocks and the loners are always the ones lining their pockets off loading their own cash hoping to get rich quick.
 
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5Cent

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My position hasn't changed. Still standing on sidelines waiting for Feds to act to make it legal for banks. 2019 was interesting for the industry.
 

jagermeister

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Ohio
Tesla is a huge gamble, just look at the EPS. That's a huge price tag for a company that's not profitable with the hope that itll become profitable and not just hype. Personally I'd need to put money there. On top of that theres no dividend which is completely wild.
With the weed game, I did read somewhere that someone mentioned to Trump about the banking issues the legal weed businesses have and that he was unaware of this so there could be changes there soon, we will see. Till then that's another gamble for quite a few reasons. It's not as easy as just growing the weed and shipping it. Theres licensing, testing, real estate, just tons of variables that can shut these businesses down in their tracks. And they're already extremely volatile just like tesla.

I tried my hand at short term trading, it's tough, it drives you crazy. Without a lot of money to play with it makes it nearly impossible unless you're trading for free which let's face it, yours never really trading for free. Then you have taxes, which are completely different for short term trading. I've switched back to 100% long term investments in strong businesses/markets and gotten back all my losses from my short term experiments and thenTesla.

To me 8% yearly with a 3-5% dividend is plenty as i dont see myself closing my positions for decades. If you wanna gamble, stick to vegas. Cause there are massive groups of players that arent gambling on the market with these volatile stocks and the loners are always the ones lining their pockets off loading their own cash hoping to get rich quick.
I get what you’re saying. But is investing in a company like Tesla truly a short term investment? Risky, sure. But investing in Amazon 20 years ago was probably considered risky too. If you made that investment and held on, long term, you’re sitting pretty dang good with it today. That’s what’s going on in my head I guess. What will Tesla be in 10, or 20 years? They are on the forefront of EV tech and the other auto makers are getting left in the dust.
 

hickslawns

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Tesla's only chance is selling off their parents. As an auto producer and seller they suck. They miss production deadlines. They miss earning a profit. . . .Elon is certainly visionary. I'm not sure he is very business savvy. Getting in the auto industry is a little different than his original business venture.
 

jagermeister

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Ohio
Tesla's only chance is selling off their parents. As an auto producer and seller they suck. They miss production deadlines. They miss earning a profit. . . .Elon is certainly visionary. I'm not sure he is very business savvy. Getting in the auto industry is a little different than his original business venture.
I don’t know, Phil. I think Elon Musk is a smart enough guy to know whether he needs help on the business side of things. Their Model 3 production and deliveries are up over 40%. They’ve got 3 assembly plants in production currently, one more in the construction phase, and another 5 locations in the development phase (including 3 in North America). If you bought stock in Tesla four or five years ago it was around $200 a share. Even less than a year ago it was close to $200 again. Today it closed at $780 a share. They pulled a significant profit in the second half of 2019 and have recently announced partnerships with Panasonic another Chinese company as battery suppliers. It just seems to me like they’re finally getting some momentum. I probably won’t do anything... but I just know I’m gonna kick myself later.
 

bowhunter1023

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I serve on the advisory board for the Ohio IT Association. Telsa was a big part of the conversation at our meeting last month. Telsa sold 400 cars in Columbus in the month of December. They far surpassed their initial market-entry goals. High risk, high reward, but what I heard that day was enough for me to think it's a sensible play.
 
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Jackalope

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I serve on the advisory board for the Ohio IT Association. Telsa was a big part of the conversation at our meeting last month. Telsa sold 400 cars in Columbus in the month of December. They far surpassed their initial market-entry goals. High risk, high reward, but what I heard that day was enough for me to think it's a sensible play.

I see a ton of them driving around Dublin. I happen to think there is a large business segment that would LOVE to see tesla fail. For all of the negative press he gets about delays, issues, crashes, his personality, etc the company and the stock continues to do very well.
 

hickslawns

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He is brass, egotistical, and reckless. Sort of reminds me of Trump. You love him or hate him.

Forgive me for being too lazy to look it up: was the quarter he profited the same quarter he made false accusations and artificially bumped his share price? About the time they were sinking and in need of refinancing some loans? Coaxing employees and investors to double down? Then made some Twitter remarks suggesting things were going to happen which were clearly NOT going to happen? Then he was investigated by (can't remember the name of the stock market police lol)? Securities and regulatory commission or something like that.

I won't disagree with you, Jim. He is not a dummie. If Tesla survives, I see it as sort of a "landlord." They own creative rights, patents, etc to certain batteries or ways these electric cars function. They sell off or rent their ideas to other autos makers and collect royalties for their ideas. I can see them making more money as the innovator of ideas than as a car maker. Another thing to keep in mind. . . They have a lot of competition now. All the big auto makers are playing catch up and gaining ground. Already have the factories and equipment along with decades of car making experience. Toyota, Honda, Mercedes. . .Europe and Asia are way ahead of the US in these areas. Either way, it will be interesting to watch it play out. I'll keep investing long. Massive companies with stable balance sheets. Buy and forget stocks.
 

jagermeister

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He is brass, egotistical, and reckless. Sort of reminds me of Trump. You love him or hate him.

Forgive me for being too lazy to look it up: was the quarter he profited the same quarter he made false accusations and artificially bumped his share price? About the time they were sinking and in need of refinancing some loans? Coaxing employees and investors to double down? Then made some Twitter remarks suggesting things were going to happen which were clearly NOT going to happen? Then he was investigated by (can't remember the name of the stock market police lol)? Securities and regulatory commission or something like that.

I won't disagree with you, Jim. He is not a dummie. If Tesla survives, I see it as sort of a "landlord." They own creative rights, patents, etc to certain batteries or ways these electric cars function. They sell off or rent their ideas to other autos makers and collect royalties for their ideas. I can see them making more money as the innovator of ideas than as a car maker. Another thing to keep in mind. . . They have a lot of competition now. All the big auto makers are playing catch up and gaining ground. Already have the factories and equipment along with decades of car making experience. Toyota, Honda, Mercedes. . .Europe and Asia are way ahead of the US in these areas. Either way, it will be interesting to watch it play out. I'll keep investing long. Massive companies with stable balance sheets. Buy and forget stocks.
If I'm not mistaken, it was back to back quarters 3 and 4 of 2019. No idea about the other stuff. I'm not saying you're wrong. Your stance is somewhat inline with the same apprehensions I have. But every time I am in a large city like Cleveland or Columbus, I see Teslas driving around and sitting in parking garages. I just passed a guy last week on 270 that was on his laptop while his Tesla drove him to his office. My gut tells me that electric will take over the auto industry, and it'll be sooner rather than later. Is it a smarter play to lay your money on Tesla or the components that make up the cars? I don't know... maybe neither. I just can't help but think this might be another tipping point in our technological timeframe. You don't have to look back very far to see these same moments prior to the explosion of things like Google/Alphabet, Apple, Amazon, and more. The advancement into 5G wireless networks might even be another one. What if we could all go back 15 years and let it ride on Google stock? That 2800+% increase by now sure would be nice. Can anyone ever really predict those outcomes or do you just go for it and hope the crazy reckless son of a bitch at the helm doesn't run it into the ground?
 

"J"

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This is what I remember reading a while back, and I’m paraphrasing so take it for what it’s worth. He announced on Twitter (I believe) that he was thinking of taking the company private again too have more control. Stock took off on this announcement and he never followed through and the SEC got involved and fines where levied. The readers digest version....
 
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Chass

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Sorry I cant see how you can make the comparison of an automaker that only does EV autos and solar panels to companies that have their hands in a multitude of business sectors and multiple opportunities per person across numerous industries. That's apples to oranges and as soon as that's realized we will see how over inflated they are. They're gonna have to sell everyone and their 3 unborn kids 2 vehicles and an acre of solar panels. They're struggling now and they pretty much own this corner of the market with next to no competitors. Its gonna get interesting once the real automakers that provide dividends and have a real valuation jump into the game.
 

Jackalope

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Sorry I cant see how you can make the comparison of an automaker that only does EV autos and solar panels to companies that have their hands in a multitude of business sectors and multiple opportunities per person across numerous industries. That's apples to oranges and as soon as that's realized we will see how over inflated they are. They're gonna have to sell everyone and their 3 unborn kids 2 vehicles and an acre of solar panels. They're struggling now and they pretty much own this corner of the market with next to no competitors. Its gonna get interesting once the real automakers that provide dividends and have a real valuation jump into the game.

Don't worry. If the domestic auto makers begin to make advancements the UAW will make sure to bankrupt them again and shareholders will get shit on. Or they'll pay pennies on the dollar to the shareholders and give majority ownership of the company to the UAW to shore up the pension fund, and then the UAW will sell the company to a foreign corporation.
 

Redhunter1012

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Don't worry. If the domestic auto makers begin to make advancements the UAW will make sure to bankrupt them again and shareholders will get shit on. Or they'll pay pennies on the dollar to the shareholders and give majority ownership of the company to the UAW to shore up the pension fund, and then the UAW will sell the company to a foreign corporation.
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Chass

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18% hit in 1 day of trading. Like I said, straight up gamble. Still has a ways to go before it reflects the true value of the company and what they have to offer.
 

Chass

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The Hills
They were talking about Tesla a good bit this morning on a local Detroit talk radio show. Pretty much saying how the stock price doesn't even remotely reflect the profits of the company and the need for the SEC to investigate what is going on there.
I dont understand who invests into them. So many people say omfg the future they will turn into something. Okay but how about now. That's like buying a house and paying 3x the value of the house because maybe in 50 years itll he worth more. Nah I'll pay what it's worth now.... or keep on moving.
 

Quantum673

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With the expansion of the EV models that are set to hit the market in the next couple years I would think Tesla will see slower growth. Just a few of the cars launching. Audi, BMW, Byron (newer Chinese company), Ford F-150, Mustang, Jaguar, Lordstown Endurance, Mazda, Mercedes, Rivian, VW, GMC Hummer. These are just a fraction of the EVs launching in the next 2 years. There are a total of close to 40 that have been announced.

Tesla is definitely the leader in self driving technology but I expect that gap to shrink quickly as 5g launches more wide spread.