Executive Director Greg Millers answers member questions about angel investing, IPO investment sizes, and more…
I hope by now, everyone has had a chance to see yesterday’s story on Severn Bancorp Inc. (Nasdaq: SVBI). This company has a lot of potential, and I think it’s going to do great things for our readers.
Be sure to look out for my update next week on Innovative Industrial Properties (NYSE: IIPR), as well. We have some great news to share, and I don’t want you to miss it.
But for now, let’s take a look at some of the excellent questions you sent in this week.
Edward J. voiced this concern: “I’ve read all the comments and not a single reply. What’s up with that? Do you even read the comments?”
Edward, I want to give you my full assurance that we read every single one of our members’ comments. We greatly value your participation with the National Institute for Cannabis Investors, and we hope you all continue to write in with your thoughts and questions.
Unfortunately, we realized very early on that we just wouldn’t have the time to answer every question, which is why I try to pick out the ones I think our readers will benefit from the most to include in these weekly Q&A’s.
Between talking with cannabis CEOs, shooting videos, creating reports, talking with insiders at conferences, and making sure I’m keeping you as informed as possible, I sadly do not have the time to answer each and every question. On top of that, I can’t offer personalized financial advice.
But even if your particular comment is not directly addressed, know that we are reading it and considering the best way to get you the information you need.
Jean Emmanuel P.: “Hi Greg. Since I am already in with you as an Elite member, and I am very interested in becoming an Angel Investor, can I upgrade to become one? Thanks.”
Hi, Jean. Absolutely you can! We’re currently in the introductory period for our new angel investing service, Cannabis Venture Syndicate. I’m pretty excited about the initial investment and about the companies I’m meeting with for potential investments through the coming year. You can learn all about this one-of-a-kind service by clicking here.
Francis K.: “Did you see ACB today? They are finally looking good!”
They are, aren’t they? The investment by Nelson Peltz is interesting for a couple of reasons. The first is the obvious one: Yet another billionaire – a legendary investor, at that – is getting into the cannabis market. That he chose Aurora Cannabis (NYSE: ACB) is obviously a big endorsement of the company, but it’s also an endorsement of cannabis investing in general. Nelson Peltz in Aurora, the Schottenstein family behind Green Growth Brands (CSE: GGB, OTC: GGBXF), Peter Thiel in Tilray (Nasdaq: TLRY) – these are all examples of big money realizing what we’ve been preaching since we launched the Institute in October. Cannabis is the biggest growth market in the world, and it will make a lot of people very rich if they get in early. And it’s still early.
The second reason the investment is interesting is specific to Aurora and to Mr. Peltz. One of my big concerns about Aurora – the main reason it is not in the Cannabis Investor’s Report model portfolio even though it has a coveted 5 rating in the NICILytics database – is that they have not been as careful with their shares as I’d like them to be. The company doubled its share count in the past year, for example, and most of the shares went for acquisitions that may be beneficial in the future but raise no cash now. Well, Nelson Peltz is an activist investor keenly interested in the cannabis space and an expert about share counts. I expect that Aurora will be far more careful with its shares in the future, now that it has a senior advisor with the right to acquire nearly 20 million of those shares.
Rodney W.: “To buy into an IPO how much would it take?”
This is a question I answered for Rodney a couple of weeks ago in an alert for members of The Cannabis IPO Insider, but we recently received a number of similar questions from our other members. I thought it would be a good idea to share my answer with our Cannabis Profits Daily readers, and I added some additional information you might find useful:
Unfortunately, Rodney, that’s a question I can’t answer for you specifically. Generally, investors can buy shares of a company right after it’s publicly traded, and they can buy as much or as little as they want, just as with other stocks. But each individual has to make his or her own decision depending on their investment goals, personal resources, risk tolerance, and a host of other factors. If you’re looking to get in for very small amounts, I can say that that’s definitely possible – no one will force you to invest more than you are comfortable with.
Private deals, like the ones available to Cannabis Venture Syndicate members, sometimes have investment minimums, but in a public market you can buy as many or as few shares as you like. On the other side, if you’re looking to put a lot of money to work, I’d pay attention to the market capitalizations of the companies you’re looking to invest in. Some of them are pretty small, so putting $1 million into one of those companies, for example, could make the stock price move very quickly and could ultimately cost you money if there’s a sharp selloff after a quick price climb.
I want to thank you all again for your questions and comments. Be on the lookout for that Innovative Industrial update, and we’ll talk soon.
Thank you for being a founding member of the National Institute for Cannabis Investors,
Executive Director, National Institute for Cannabis Investors
14 responses to “Q&A: How Much Does It Take to Buy an IPO?”
March 16 2019