One company is taking cannabis deliveries to the next level. Plus, we answer two questions from our members about cannabis options and dividend payments.
As part of normalization, we’re going to see cannabis products delivered just like Amazon packages across the United States. It will be quick and efficient.
That day may now get here much sooner than expected.
Vireo Health International Inc. (CSE: VREO, OTC: VREOF) announced that patients living in the New York City metro area, Westchester County, and Nassau County can receive free, same-day marijuana deliveries.
Vireo Health has made more than 25,000 home deliveries to patients, and it is the first company in New York to offer this type of service.
With all the setbacks in the Big Apple thus far, this is a positive step forward for the industry. I know that some medical patients may have difficulties getting to a dispensary because of debilitating conditions. I’m glad that, at least in this instance, they won’t have to pay an extra cost to get their medicine.
This also plays well into Vireo spreading the word about its services, so it’s a savvy marketing move.
I haven’t had much reason to talk about Vireo until now, but with this news and the fact that it was added to the Horizons Emerging Marijuana Growers Index ETF (HMJR), I’m going to take a closer look at the company’s full operations.
In fact, looking at different investment opportunities – like this one – is something I want to talk about today.
Your Questions Answered
When I released a report about how to profit off Canopy Growth Corp. (NYSE: CGC), I received a question about options trading.
Jeffrey H. asked: “How do you feel about options for Canopy or even STZ? I don’t see any recos for options from you all on some of these high flyers. Wouldn’t that be a good way to play some of your unreachables? STZ looks tasty.”
Thanks for the question, Jeffrey. As you’ve seen through my recommendations, I’ve never talked about making an options trade. Options can be risky, and making those kinds of investments won’t be for everyone.
I know it can also be tough for an investor to look at a $40 stock or a $200 stock and see a value play, which is what I think you are referring to when you say the company is “unreachable.” But as I’ve mentioned before, I’d rather have 30 shares of Canopy Growth or handful of shares of Constellation Brands (NYSE: STZ) to start out with than 1,000 shares of a penny stock just because it seems “cheap.”
Remember that over time, you can always build a bigger position.
However, I know we also have more advanced traders in our midst who want to learn about something you have seen referred to as Cannabis Lots. Tom Gentile, Board Member of the National Institute for Cannabis Investors, is known as a master of developing rules-based trading strategies.
Since 2009, Tom has taught more than 300,000 traders the specific secrets of spotting high-probability and low-risk trade opportunities, and now he is going to use his years of experience to pick winners to share with you.
Thanks for the question, and I hope that helps!
Next, I wanted to answer a question about cannabis companies paying a dividend…
Cannabis Dividend Payments
There’s already one company that pays a cannabis dividend, but it’s not a common practice in the industry.
Jerome T. says: “Greg, will cannabis stocks start to pay dividends when it becomes legal in the U.S? Thanks, Jerry.”
Jerry, I love this question because it gives me a chance to explain my long-term view for cannabis stocks.
The answer is that cannabis stocks will eventually pay dividends. In fact, 10 or 15 years from now, cannabis stocks (or the very large consumer packaged goods companies and drug companies that have a cannabis division) will be seen as defensive stocks.
That will be due to secure dividend payments and a relatively low response to downturns in the economy. We aren’t there right now, but we will get there.
Cannabis stocks will eventually be lumped in with alcohol stocks, utilities, and healthcare stocks.
However, that won’t happen right when full federal legalization does.
When the federal government removes cannabis from Schedule I of the Controlled Substances Act, there will be a period when cannabis companies need cash more than ever. That’s because there will be an even bigger wave of acquisitions. Most of the better cannabis companies will try to be the acquirers in that wave, but some marijuana executives of high-profile companies will eventually sell to large firms not in the cannabis sector.
They will be raising debt, shaving costs, and issuing shares to afford all the acquisitions they want to make.
It’s only after that phase starts to cool off that a cannabis company will pay a dividend.
In the meantime, you can get cannabis dividends now by buying Innovative Industrial Properties Inc. (NYSE: IIPR), a REIT that must distribute most of its profits as dividends by law.
And if federal banking reform passes before full legalization, I expect to see some more innovative vehicles to get dividends to those investors who want them.
As a reminder, I had my staff put together a free guide about IIPR. You can access that right here.
I’m on my road trip to California and Nevada, but I’ll still be checking in next week and will have even more updates about California 2.0 and the important Las Vegas market upon my return.
Enjoy the rest of your weekend,
Executive Director, National Institute for Cannabis Investors
3 responses to “Free Cannabis Deliveries in New York”
July 20 2019