Look! Over there! Did you see them? A whole group of lemmings following each other over a cliff. But there's something different about them.
- Scott Phillips
- MARCH 17 2017 - 2:52PM
They look, well, stoned.....extract....
And it's not just Stemcell United. The ASX's list of speculative medical cannabis companies are having a field day. These companies' share prices are white hot. Smoking, you could say.
And even minerals explorer Queensland Bauxite (ASX:QBL) is getting in on the act, recently announcing that the company "... is pleased to announce the progress of its investment in Medical Cannabis Limited" which is "furthering its plans within the Australian medical cannabis and hemp seed research and supply industry".
No, I have no idea what bauxite and cannabis have in common, either. But the share price of Queensland Bauxite has tripled since the company announced that investment in early March.
For the record, I have no doubt these companies have every intention of trying to strike it rich in medical cannabis. There might well be a lucrative market opportunity for someone – or even a few companies. But when a bauxite hopeful and a company that holds patents for orchid stem cells decide that they should instead be in the cannabis business, any sensible investor should be careful.
Foolish takeaway
It's always possible that an unscrupulous operator could just announce a move into cannabis to juice its share price. Or decide that, given the challenges of its current business, a "Hail Mary (Jane)" pass is in order. But investing in such companies is a risky – and frankly, silly – thing to do with anything other than money you've already set aside for the pokies. Like them, it's fun to play, and you might win for a little while – but the odds are well and truly stacked against you.
http://www.theage.com.au/money/inve...he-rage-but-its-a-bubble-20170317-gv0eub.html
- Forums
- ASX - By Stock
- CGB
- Medical cannabis stocks are all the rage, but it's a bubble
Medical cannabis stocks are all the rage, but it's a bubble
-
- There are more pages in this discussion • 37 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CGB (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online