Executive Director Greg Miller answers more of your burning questions. Find out if he answered yours.
I want to start by thanking everyone who has written in over the past week. We’ve enjoyed reading your comments, and we especially love hearing how the National Institute for Cannabis Investors is helping you on your way to financial security.
We received a number of thoughtful questions, and we love seeing that, too. Our goal at the Institute is to educate you and arm you with everything you need to be successful in cannabis investing, and the more you actively participate in our community, the closer we get to that goal.
With that in mind, my team and I have decided to start a series in which I select a few questions every week to answer. So keep the questions coming.
Now, I won’t have time to respond to everyone’s questions – and remember, I can’t offer any personalized investing advice.
But know that we read every comment, and even if you don’t see an answer to one of your questions here, we may be working on a piece for the future that tells you everything you need to know.
So without further ado, let’s dive right into this week’s Cannabis Profits Daily Q&A.
Jay K. asks: “Do you buy convertible notes through your broker or through the company directly? How do you know when a company is offering convertible notes?”
My story earlier this week on this hybrid security generated a lot of questions like yours, Jay, and that’s understandable. Convertible notes are a complicated topic, but I wanted to share a bit about them with you. The uptick we’ve seen in their use within the cannabis sector demonstrates just how legitimate the industry is becoming as mainstream investors inject their capital into marijuana companies.
Convertible bonds are mostly used by large, sophisticated investors with a lot of resources. Those folks have the tools to maximize their profits from convertibles. Many convertible notes are not even registered and therefore are unavailable to most individual investors. But some individual investors buy registered notes from time to time. An investor who wants to trade an exchange-traded convertible bond can buy and sell them the same way they buy and sell the underlying stock. An investor who wants to purchase them when the bonds are issued must generally be a customer of the brokerage firms which underwrote the note – a note directly issued by a company without an investment banker being involved is very rare.
Henry W. asks: “How can I invest in the NICI 50, NICI Wellness, and NICI US Cannabis funds that show up on the bottom of our emails? As Founders and Elites, we should be able to share a piece of this too, right?”
Another great question, Henry. Our proprietary indices are a great way to see an overview of how different parts of the industry are performing on a day-to-day basis. These are just that, though – indices, and not index funds. There’s nothing to directly trade with any index, but they can act as a valuable tool to guide you to smart investments across the industry. Another thing to know about those indices is that they are designed to be representative of the industry, or of the U.S. part of it, or the health and wellness part of it. They are not designed to be the best companies (though sometimes they are).
And here’s a tip: If you click on the name of an index, a chart will appear, showing that index’s performance since we began tracking it. This is a fantastic way to see the overall health and progress of these markets. You can even zoom in to show the indices’ performance over specific timeframes!
Jose C. asks: “Is there a way to know which stocks I should sell?”
We haven’t recommended the sale of any stocks in our model portfolios for Cannabis Investor’s Report or The Cannabis IPO Insider yet, but as soon as we do, our paid members will receive an alert with suggested sell instructions just as they do for buy alerts. Of course, the precise decision of when to buy or sell, and how much, is ultimately up to you as an investor. I hope that the news and analysis I share in Cannabis Investor’s Report and Cannabis Profits Daily, combined with my general trade advice, helps to make those decisions easier.
Again, I hope all of you continue to write in. The Institute would not be what it is without you.
Thank you for continuing to be an integral part of the National Institute for Cannabis Investors,
Executive Director, National Institute for Cannabis Investors