Early investors have experienced gains in the cannabis market like nothing we’ve ever seen…
One of the things I expect to happen in the next six months is for the cannabis market to get a better tone.
With a friendlier environment, we will see even more cannabis IPOs than ever before.
Early adopters know this is an impressive opportunity.
Back in December 2018, we’d found 77 different, everyday people who’d grossed $1 million or more from the cannabis industry. Today, our estimates confidently put that number at more than 239.
So, with more enthusiasm around the stock market and cannabis IPOs in particular, I wanted to share with our members a few quick tips on how to get started in investing in initial public offerings.
After all, this is an industry that could mint a whole new set of millionaires, and we don’t want you sitting on the sidelines.
Cannabis Trading Strategy
The biggest thing to know about cannabis IPO investing right now is that stocks mostly trade either on the CSE or through over-the-counter markets (OTC).
Cannabis is illegal under U.S. federal law, so the NYSE and Nasdaq don’t want to run the risk of listing a U.S. cannabis company. Most cannabis companies, as it stands, will first go public on the CSE or the TSX in Canada, and then they will look to get an OTC ticker later on.
Right now, we’re in the “sweet spot” of cannabis investing – where pennies could return millions. Click here to hear why former Speaker of the House John Boehner is “all in.”
If a company has an OTC symbol, those are normally easily bought through big American brokerage firms. It might take longer to buy an OTC symbol, so that is just something to keep in mind. Depending on the demand for a stock, we’ve found it is often better to wait for it to trade over the counter.
We don’t have specific recommendations on brokers, but we do have a list of ones that allow American investors to buy foreign companies.
In particular, a lot of our members have said that they found TD Ameritrade to be the easiest brokerage firm to work with when it comes to trading Canadian stocks.
For current members of the Cannabis IPO Insider, if you haven’t seen it yet, I wanted to share this special guide I had my staff create for you. For new and current members alike, I hope it helps you get the most out of your subscription.
What’s Ahead for Cannabis IPO Investors
A 50-year study found the average U.S. IPO will be priced 17% cheaper than it should be. So if you buy shares on IPO day – what history tells you is that you’re already up 17% on day one.
It’s not a bad start.
Of course, there are extremes; some companies discount 50% – some a lot more.
But you’re going to want to be there at the very beginning – IPO day.
And a winning IPO comes down to just a handful of things.
In fact, there are really just three. First, you want a company with a really good management team. It’s not the Wild West out there anymore. Retired hippies with greenhouses acting as CEOs just won’t cut it anymore.
Second, you want a company with a great brand and significant distribution channels. Remember, there’s going to be explosive growth over the next couple of years.
The last thing – and it’s a big one – is the share structure of the company.
Because remember, when a company IPOs, it’s new to the market, but it’s not a new company.
Usually, it’s been doing business for years as a private company.
So you only want to get into a company with a well-structured IPO from an experienced management team.
That’s what’s going to give you the shot at those nice, straight-line profits that can turn $1,000 into $2,000, into $20,000, into $50,000, into $1,000,000 or more.
I’m excited you’re here with us on this journey.
Executive Director, National Institute for Cannabis Investors
P.S. As we speak, a potentially $210 billion tidal wave of Cannabis IPOs is knocking on the door of Wall Street – and we expect 42 companies to go public by Labor Day. The investors who get in early? They could see gains of up to 1,000%, practically overnight. And The National Institute of Cannabis Investors has paired up with the foremost expert on IPOs to bring you exclusive recommendations on when and how to get in on these IPOs. This is your chance to build what could be multi-generational wealth. Learn how to get started here.
7 responses to “How to Make the IPO Market Work for You”
June 17 2019