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,

Greg Miller
Executive Director, National Institute for Cannabis Investors


Comments

12 responses to “Q&A: How Much Does It Take to Buy an IPO?”

  1. peace and blessings to you and your family…some people can’t see a blessing when they have it right in their hands I’m greatful for all you shear.blessing.YOUR HUMAN TOO BLESSING…

  2. I am an Elite member at this time and I am considering the invitation to your IPO Insider. How different is the information received on an IPO Hotlist, IPO Action Plan, IPO Dossiers and its other related benefits compared to this new Venture Syndicate service? Is this a different arena of investing?

    • Yes Ann-Marie because they do not charge fees to buy and only charge like 0.00119 to sell. I have some stocks through Robinhood but the problem is that they do not carry or make available most of the cannabis stocks out there. All you have to do is type in the ticker or even the first part of the name and it will either come up or not. I do know that most of the BIG cannabis stocks are on there like Canopy, Cronos, Aphria and some of the others. This being said, you should also have an account with an online broker like eTrade, TD, Fidelity, Schwab, etc… so that you will be able to basically buy any of the publicly traded cannabis stocks. Hope this helps.

  3. Hi,
    I think you have addressed this question before but I am new to the game and I am wondering about buying the cannabis stocks on the CSE versus the OTC. What are the advantages or disadvantages of each? In addition I know that TD requires one to do a trade with assistance to buy on the CSE
    which requires an additional fee. Thanks

  4. I am trying this as a beginner. I am only a small member, not offered much information, like the IPO list, that is what I am interested in.Taking the steps and set up my own account etc. does take some time since I am trying to increase my retirement capital. Research does help though. The yearly memberships are pricey. Thinking about it, that information is needed to get the jump!

  5. Good information. Like one of the comments, “ I am one day new at this. I am starting to learn”. Once I understand how to set up an account, I will investigate how to invest.

  6. I would like to upgrade to the Venture Syndicate how much would the minimum amount be to angel invest? I’m already apart of the IPOs ! I’m new to investing and is it anyway some one could walk me thorough a few things? also do you recommend M1?

  7. I am a very new member as of yesterday, less than 24 hours. I have no Ideal what i am doing or how to even get started. I am retired and on disability with limited income. Is there a step by step of how to get started investing in cannabis that is cheap enough for me to purchase enough shares that will actually benefit me?

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