From the vaping crisis to an editorial rebuttal, there’s a lot to discuss this week…

Last week, I talked about how I disagreed with the New York Times editorial piece, “Do We Really Want a Microsoft of Marijuana?”

My answer is yes. We absolutely want a Microsoft of Marijuana!

In the article, the author – Christopher Caldwell – states that he thinks the SAFE Banking Act would disproportionately help giant operators at the expense of smaller companies. That, in turn, would usher in a dystopian future in which multinational businesses develop new flavors and products to turn America’s children into a nation of potheads.

I think he’s wrong, but I want to know what you think.

That’s why, at the end of this article, I’ve created a Twitter poll.

Your opinion matters, and I want to hear yours!

But before you share your input, I have to address the vaping crisis…

The Vaping Crisis

As you saw earlier this week, I sent out an updated report about the vaping crisis, which has turned into an epidemic. Over 400 people may have been affected, and several people have unfortunately died.

Of course, I know a lot of our readers have a lot of questions about this issue.

Keith D. asks: “Greg, what do you think the near term effect will be for the companies in our portfolios that concentrate their business in the vaping market and vaping supplies?”

Thanks for your question.

I’m concerned in the short term.

The publicity surrounding this illness may sweep up many legitimate vape manufacturers into a panic caused by overzealous policymakers and an uninformed press.

I’ve recommended two companies before all of this happened that make all or most of their revenue from vaping products.

One of the model portfolio members in the Cannabis Investor’s Report was already on “HOLD” because of other issues at the company.

The other one – in the Cannabis IPO Insider – I have moved to HOLD for the time being. You can access that report here.

Why not just sell?

In the intermediate to longer term, this issue may turn out to be a huge positive for legitimate vape manufacturers. Consumers and regulators will learn that legal, regulated providers are the best way to prevent bad effects from happening to the public.

Former FDA Commissioner Scott Gottlieb has already spoken out on this issue, and others are starting to follow. The vape industry is starting to react, too.

KushCo Holdings Inc. (OTC: KSHB) CEO Nick Kovacevich, recently talked to Yahoo Finance about the issue. Other vape makers and other press outlets will follow.

While many of the illicit vape consumers will have no options available to them because cannabis is not legal in their states, many others will stop buying on the illicit market and pay up for clean, tested, and safe products.

They’ll have to pay up – the illicit operators don’t pay taxes on their products, and of course, they save a lot of money using untested ingredients.

But when they do, they’ll find that in addition to safety, they get a better product.

Another member had a question concerning threats to CBD investments…

Biosynthesis: Threat or Opportunity?

Clinton J. asks: “Is biosynthesis a threat to our existing investments in CBD?”

It’s not, Clinton. In fact, it could be an opportunity.

Few CBD companies own their own hemp farms. Charlotte’s Web Holdings Inc. (TSX: CWEB, OTC: CWBHF), for example, owns some, but contracts out most of its growing.

Other companies are similar.

So, synthetic cannabinoids might turn out to be a huge headache for farmers, but farming only makes up a tiny fraction of our CBD investments.

The producers of branded products that we’re focused on may be able to buy synthetic cannabinoids for less than they can acquire the cannabinoids from farmers, or they may be able to buy custom cannabinoid combinations, which would be impossible without synthetically produced cannabinoids.

So, one of our companies could sell a face cream with extra CBN, CBA, or whatever turns out to be the most effective cannabinoid for treating facial skin.

Thanks again for the question.

There’s a lot of pharmaceutical companies and wellness companies out there vying for your attention, and there will be a few that have revolutionary breakthroughs.

That’s why one of the sub-sector categories in our NICILytics stock rating system is “Pharmaceutical.” We’re closing in on 200 ratings for different companies, and you’re free to learn more about our system here.

Current Lifetime Members can access NICILytics through this link.

Share Your Thoughts

Before you enjoy the rest of your weekend, I promised that I would share a poll to get your input.

Do you think the industry needs a Microsoft of cannabis stocks?

Let me know below.

Take care,

Greg Miller

Executive Director, National Institute for Cannabis Investors


Comments

6 responses to “The Industry Does Need the Microsoft of Cannabis”

  1. I don’t know if Mr. Softy [MSFT] is the best example. I’m thinking more of the major beverage or cigarette players. Clearly one thing is for sure. When it’s all said and done, on Friday after work, “Joe Six-Pack” is losing ground to “Vinnie Vaper”. Produce, market, distribute, retail, repeat… Just a matter of deciphering who’s got the chops to make a national footprint happen. –JG

  2. As a physician, I would like to remind you that the lung pathology causing the deaths does not appear to be isolated to just CBD products. Some nicotine/CBD and nicotine alone products have been involved as well. We really don’t understand the pathology nor what the common link, if there is one, is. Until we know that, vaping products should not be used, in my opinion or used knowing full well there use may kill you or permenently damage your lungs much faster than smoking does.

  3. Hi Greg, thanks for the great updates. what do you think about Evio labs (EVIO)? I think it is a great picks and shovels play in the pot sector.
    Thanks Joe.

  4. Hi Greg, I have some Evio stock. It’s fallen past my 25% stop loss point. Should I sell or hold on. Is there a bright future for this company like I had thought? Thanks, Neale

  5. I was in the hospital last year being treated for cancer and the most relief I got was from “vaping” marijuna in the bathroom! I flushed the toilet when I exhaled and no one seemed to know, and I felt so much better spending 3-4 days 4 times for treatment as chemo takes a toll. The hospitals need to get with the 21 century and provide patients some relief!

  6. I believe, if this market is going to be accepted by the powers to be, the products will have to be produced in GLP/GMP facilities. There will always be illicit producers and products out there. However, once complete controlled / licensed legalization happens, there will be fewer illicits, if enforcement is done correctly. As far as needing a “Microsoft of Cannabis”, yes the industry does. There needs to be a company with integrity, that gets it right, for all to lookup too.

    Thank you,

    Nick

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