Temper Your Excitement For Pot Stocks

NEW YORK:  It was only a matter of time before this subject came up: What types of investment opportunities does the fledgling legalized marijuana industry offer?

Whatever your position is on legalized marijuana, there’s no question that this is an industry that’s got many people seeing huge dollar signs for the future.

In 2012, Washington and Colorado became the first states to approve recreational use of marijuana.

“If it’s legalized in a number of states, there certainly is a large potential for companies in this industry, whether you agree with it or not,” said Brian Bruce, chief executive and chief investment officer of Hillcrest Asset Management LLC in Dallas. “If suddenly you have 10 states where it’s legal, there’s good revenue potential there.”

But before you take a toke investment-wise, remember that this is an infant industry that faces challenges.

“When you’re in that early stage before a company goes public, that can be very profitable. It can also be incredibly risky,” said Gerri Walsh, senior vice president for investor education at the Financial Industry Regulatory Authority, which last year issued an investor alert for marijuana stock scams.


Read full article @ Dallas News