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<p><b>Introduction</b><b> 1</b></p> <p>About This Book 1</p> <p>Foolish Assumptions 2</p> <p>Icons Used in This Book 3</p> <p>Beyond the Book 4</p> <p>Where to Go from Here 4</p> <p><b>Part 1: Getting Started with Cannabis Investing 5</b></p> <p><b>Chapter 1: Taking the Nickel Tour</b><b> 7</b></p> <p>Weighing the Pros and Cons of Investing in Cannabis 8</p> <p>Pros 8</p> <p>Cons 9</p> <p>Deciding Whether to Invest in Businesses That Touch the Plant or Those That Don’t 11</p> <p>Exploring Your Investment Options 12</p> <p>Starting your own business 12</p> <p>Investing in cannabis real estate 13</p> <p>Buying and selling stocks 14</p> <p>Diversifying with exchange traded funds and mutual funds 15</p> <p>Considering private investment opportunities 15</p> <p>Finding Investment Opportunities 16</p> <p>Researching Investment Opportunities 17</p> <p>Planning Your Investment Strategy 19</p> <p>Investing in a Cannabis Business 20</p> <p><b>Chapter 2: Exploring Cannabis Business Types</b><b> 23</b></p> <p>Choosing Sides: Medical or Adult-Use? 24</p> <p>Investing in medical marijuana 24</p> <p>Investing in adult-use marijuana 25</p> <p>Recognizing Different Cannabis Business Types 26</p> <p>Cultivation 27</p> <p>Manufacturing 28</p> <p>Processed product brand 30</p> <p>Retailers/dispensaries 30</p> <p>Device makers 31</p> <p>Considering Ancillary Businesses 31</p> <p>Breweries 32</p> <p>Banking, payroll, and other cash management services 32</p> <p>Blockchain and other technologies 34</p> <p>Delivery services 34</p> <p>Grow equipment manufacturers and suppliers 35</p> <p>Marketing, public relations, and advertising firms 35</p> <p>Professional employer organizations 36</p> <p>Pharmaceutical and biotech companies 36</p> <p>Real estate 37</p> <p>Security services and security equipment suppliers 38</p> <p>Software companies 38</p> <p><b>Chapter 3: Understanding the Political, Cultural, and Regulatory Landscape</b><b> 39</b></p> <p>Recognizing the Impact of Laws on the Industry 40</p> <p>Getting up to speed on U.S federal law and enforcement 40</p> <p>Brushing up on state cannabis laws 44</p> <p>Considering local laws, too 45</p> <p>Examining cannabis laws in other countries 46</p> <p>Riding the Waves of Politics and Culture 46</p> <p>Checking the nation’s pulse 47</p> <p>Debunking misconceptions of cannabis and users 49</p> <p>Examining activism 50</p> <p>Tuning into cannabis culture 52</p> <p>Accounting for the High Costs of Doing Business 53</p> <p>Regulatory and compliance costs 53</p> <p>Federal, state, and local taxes 54</p> <p>Security costs 55</p> <p><b>Chapter 4: Sizing Up the Risks and Rewards of Cannabis Investing</b><b> 57</b></p> <p>Weighing the Risks 58</p> <p>Falling victim to con artists 58</p> <p>Investing in an overvalued company 60</p> <p>Accounting for dilution risks 61</p> <p>Weighing the risks of potential commoditization 62</p> <p>Recognizing the possibility of changes in how federal marijuana laws are enforced 63</p> <p>Considering the impact of state and local regulation and enforcement 64</p> <p>Evaluating risks associated with obtaining banking and financial services 65</p> <p>Anticipating the impact of possible supply and demand imbalances 65</p> <p>Considering the possibility of business failure 67</p> <p>Assessing the Potential Rewards 67</p> <p>Deciding Whether Investing in Cannabis is Right for You 68</p> <p>Considering your investment goals 68</p> <p>Assessing your own risk tolerance 69</p> <p><b>Part 2: Doing Your Homework 71</b></p> <p><b>Chapter 5: Exploring Your Investment Options</b><b> 73</b></p> <p>Comparing Public versus Private Investment Options 74</p> <p>Understanding how companies raise capital 74</p> <p>Investing in private companies 76</p> <p>Investing in public companies 78</p> <p>Investing Domestically or Abroad? 79</p> <p>Investing in Cannabis or Ancillary Businesses? 81</p> <p>Buying and Selling Cannabis Stocks 83</p> <p>Going mainstream with listed stocks 83</p> <p>Bargain hunting with unlisted, over-the-counter stocks 84</p> <p>Diversifying with exchange traded funds 84</p> <p>Betting on an index with exchange traded notes 86</p> <p>What about mutual funds? 86</p> <p>Buying and selling shares of Canadian cannabis companies 87</p> <p>Investing as a Venture Capitalist 88</p> <p><b>Chapter 6: Digging Up Cannabis Investment Opportunities</b><b> 89</b></p> <p>Using Online Investment Tools and Apps 90</p> <p>Cannabis Stock Trades 91</p> <p>Yahoo! Finance 91</p> <p>Morningstar 92</p> <p>FINVIZ 92</p> <p>ETFdb.com 93</p> <p>FeeX 93</p> <p>FRED 93</p> <p>The Marijuana Index 94</p> <p>Marijuana Stocks 94</p> <p>Barchart 94</p> <p>Apps 95</p> <p>Staying Abreast of Cannabis Industry News 96</p> <p>Scoping Out Opportunities in Exchange Traded Funds 100</p> <p>Finding Private Equity and Venture Capital Funds and Firms 101</p> <p>Getting Investment Leads from a Broker 102</p> <p><b>Chapter 7: Researching Cannabis Businesses and Stocks: Fundamental Analysis</b><b> 103</b></p> <p>Grasping Fundamental Analysis Basics 104</p> <p>Researching Any Company You’re Thinking of Investing in 106</p> <p>Assessing the management team 106</p> <p>Evaluating the company’s financial health 109</p> <p>Evaluating startups and investments in licenses 111</p> <p>Looking at the company’s business strategy 112</p> <p>Checking out the company’s competitive position 115</p> <p>Checking any insider buying or selling 116</p> <p>Looking into warrants and convertible securities 117</p> <p>Following analyst coverage and conference calls 119</p> <p>Digging up dirt 120</p> <p>Evaluating Cannabis Cultivation Businesses 121</p> <p>Sizing up the grow master 121</p> <p>Checking a grower’s cost per gram 122</p> <p>Comparing cost per gram 123</p> <p>Considering the cultivator’s clientele 123</p> <p><b>Chapter 8: Analyzing Market Trends: Technical Analysis</b><b> 125</b></p> <p>Comparing Technical and Fundamental Analysis 126</p> <p>Grasping the principles of technical analysis 126</p> <p>Weighing the pros and cons of technical analysis 128</p> <p>Combining the best of both worlds 129</p> <p>Gathering your tools 130</p> <p>Spotting and Monitoring Trends 131</p> <p>Examining different trends 131</p> <p>Gauging a trend’s length 134</p> <p>Following trendlines 134</p> <p>Looking for resistance and support 135</p> <p>Referencing Technical Charts 136</p> <p>Getting to know the different chart types 136</p> <p>Identifying chart patterns 138</p> <p>Interpreting Technical Indicators 143</p> <p>The Relative Strength Index 143</p> <p>The Money Flow Index 144</p> <p>Moving averages 144</p> <p>Moving average convergence divergence 144</p> <p>Bollinger Bands 145</p> <p><b>Part 3: Buying and Selling Cannabis Stocks, ETFs, or Mutual Funds 147</b></p> <p><b>Chapter 9: Choosing a Broker or Advisor </b><b>149</b></p> <p>Defining the Broker’s Role 150</p> <p>Distinguishing between Full-Service and Discount Brokers 150</p> <p>At your disposal: Full-service brokers 151</p> <p>Just the basics: Discount brokers 153</p> <p>Deciding Whether to Fly Solo or Consult a Broker or Advisor 154</p> <p>Finding a Cannabis-Savvy Broker or Advisor 155</p> <p>Evaluating Brokers and Advisors 155</p> <p>Comparing costs 156</p> <p>Comparing quality and service 156</p> <p>Checking credentials 157</p> <p>Comparing online brokers 158</p> <p><b>Chapter 10: Using Screening Tools</b><b> 161</b></p> <p>Searching the Marijuana Stock Universe 162</p> <p>Getting Up to Speed on the Different Exchanges and Markets 165</p> <p>Browsing through the Daily Marijuana Observer’s List</p> <p>of OTC Cannabis Stocks 167</p> <p>Checking Out Other Stock Screeners 168</p> <p>Screening Cannabis Investment Funds 170</p> <p>What to Screen for 172</p> <p>First up: The major categories 172</p> <p>The main event: Specific filters 173</p> <p>Valuation measures 175</p> <p>Financial Highlights 176</p> <p>A Few Final Points to Keep in Mind 176</p> <p><b>Chapter 11: Placing Buy and Sell Orders for Cannabis Stocks and ETFs</b><b> 177</b></p> <p>Understanding the Bid-Ask Spread 178</p> <p>Placing an Order to Buy or Sell Shares 179</p> <p>Choosing an Action 182</p> <p>Buy 182</p> <p>Sell 182</p> <p>Sell all shares 182</p> <p>Understanding the Different Order Types 183</p> <p>Market orders 184</p> <p>Limit orders 184</p> <p>Stop orders 185</p> <p>Trailing stop orders 186</p> <p>Specifying a Timeframe 187</p> <p>Day 187</p> <p>Good till canceled 188</p> <p>Fill or kill 188</p> <p>Immediate or cancel 188</p> <p>Market on open 189</p> <p>Market on close 189</p> <p><b>Chapter 12: Exploring Advanced Trading Techniques</b><b> 191</b></p> <p>Buying on Margin 191</p> <p>Registering to buy on margin 192</p> <p>Examining marginal outcomes 193</p> <p>Striving for success on margin 194</p> <p>Shorting a Stock 195</p> <p>Setting up a short sale 196</p> <p>Taking a hit when the stock price keeps rising 197</p> <p>Responding when you feel the squeeze 198</p> <p>Recognizing the ups and downs of shorting cannabis stocks 198</p> <p><b>Part 4: Exploring Cannabis Investment Strategies 201</b></p> <p><b>Chapter 13: Following the Money: Momentum Investing (aka Speculating)</b><b> 203</b></p> <p>Spotting Opportunities to Buy: Upward Momentum 204</p> <p>Watching for Signals to Sell: Downward Momentum 207</p> <p>Following the Smart Money 208</p> <p>Avoiding Some of the Risks Inherent in Momentum Investing 209</p> <p>Watching out for the short squeeze 209</p> <p>Steering clear of pump-and-dump scams 210</p> <p>Avoiding cannabis stock and industry bubbles 211</p> <p>Knowing when momentum investing works and when it doesn’t 211</p> <p><b>Chapter 14: Investing in Canadian Cannabis Companies</b><b> 213</b></p> <p>Deciding Whether to Invest in Canadian or U.S Cannabis Businesses 214</p> <p>The pros and cons of the Canadian cannabis market 214</p> <p>The pros and cons of the U.S cannabis market 216</p> <p>Scoping Out the Four Leading Canadian Cannabis Companies 217</p> <p>Canopy Growth Corporation 217</p> <p>Cronos Group 218</p> <p>Aurora Cannabis 218</p> <p>Aphria 219</p> <p><b>Chapter 15: Investing in Countries Where Marijuana is Legal</b><b> 221</b></p> <p>Argentina 222</p> <p>Australia 223</p> <p>Brazil 224</p> <p>Chile 224</p> <p>Colombia 225</p> <p>Czech Republic 226</p> <p>Ecuador 226</p> <p>Germany 227</p> <p>Greece 227</p> <p>Ireland 228</p> <p>Israel 228</p> <p>Italy 229</p> <p>Jamaica 230</p> <p>The Netherlands 230</p> <p>New Zealand 231</p> <p>Norway 232</p> <p>Peru 232</p> <p>Poland 233</p> <p>Portugal 233</p> <p>Switzerland 233</p> <p>Thailand 234</p> <p>United Kingdom 234</p> <p>Zambia 235</p> <p><b>Chapter 16: Minimizing Risks While Maximizing Gains</b><b> 237</b></p> <p>Staying Plugged in to the Industry 238</p> <p>Investing in the People, Not the Plant 239</p> <p>Performing Your Due Diligence 239</p> <p>Trading Cannabis Stocks on Private Markets 240</p> <p>Investing in the Biggest Markets 241</p> <p>Diversifying Inside and Outside the Industry 241</p> <p>Investing in Multi-state Operators 242</p> <p>Keep an Eye on the ETFs 243</p> <p>Invest in Innovative Companies 244</p> <p>Use Different Stock Order Types to Your Advantage 245</p> <p>Don’t Get Greedy 246</p> <p><b>Part 5: The Part of Tens 247</b></p> <p><b>Chapter 17: Ten Ways to Profit When the Market Drops</b><b> 249</b></p> <p>Be Patient, But Vigilant 250</p> <p>Review Your Portfolio 250</p> <p>Cut Your Losses 250</p> <p>Buy More Shares 251</p> <p>Focus on Value Stocks 251</p> <p>Short Bad Stocks 251</p> <p>Find Potential Treasures with Bond Ratings 252</p> <p>Rotate Sectors 252</p> <p>Buy a Call Option 252</p> <p>Write a Covered Call Option 253</p> <p><b>Chapter 18: Ten Reasons Not to Invest in Marijuana Stocks</b><b> 255</b></p> <p>Marijuana is Still Federally Illegal in the U.S. 256</p> <p>Marijuana Investment Scams Are Rampant 256</p> <p>Earning a Profit as a Cannabis Business is a Huge Challenge 257</p> <p>Illegal Operations Undermine Demand for Legal Products 258</p> <p>The Industry is Very Fragmented 258</p> <p>Oversupply is More Likely Than Not 258</p> <p>Bad News is Just Around the Corner 259</p> <p>Marijuana Laws Are Slow to Change 259</p> <p>Company Shares Are Being Diluted 260</p> <p>Demand is Unpredictable 260</p> <p><b>Chapter 19: Ten (Plus One) Criteria for Choosing a Cannabis Investment</b><b> 261</b></p> <p>Experienced and Successful Management Team 262</p> <p>Steady Revenue Growth 262</p> <p>Consistent Profit Growth 263</p> <p>Comparatively Low Price-to-Earnings Ratio 263</p> <p>Positive Money Flow Indicator 264</p> <p>Expanding Free Cash Flow 264</p> <p>Operations in Other States or Countries 264</p> <p>Growing Market 265</p> <p>Increasing Market Share 265</p> <p>Positive Reputation in the Industry 266</p> <p>Manageable Debt 266</p> <p><b>Chapter 20: Ten Mistakes to Avoid</b><b> 267</b></p> <p>Failing to Diversify Sufficiently 267</p> <p>Relying Solely on Online Information 268</p> <p>Not Performing Due Diligence 268</p> <p>Believing Federal Legalization Will Happen Soon 269</p> <p>Failing to Account for Regulations 269</p> <p>Failing to Consider the Possibility of Bad News 269</p> <p>Buying or Selling Too Late or Too Early 270</p> <p>Ignoring Business Fundamentals 270</p> <p>Expecting All Marijuana Stocks to Be Winners 271</p> <p>Buying a Stock Just Because It’s Cheap 271</p> <p>Index 273</p>

<p><b>Steven Gormley</b> is CEO at Radiko Holdings. He's a celebrated expert in the legal marijuana sector and his analyses have been featured prominently in media outlets like <i>Forbes,</i> the <i>Wall Street Journal</i> , and <i>Marketwatch.</i> Steven is also Chief Operating Officer of Silverback Investments, Inc, a management company in the cannabis space.

<ul> <li>Be a pioneer and invest in cannabis</li> <li>Understand the risks and rewards of investing in cannabis</li> <li>Discover the hottest investment categories</li> </ul> <p><b>Get in on the ground floor of legal cannabis</b> <p>Are you looking for an exciting new industry that's ripe for investment? Look no further than the newly emerging market of legal cannabis. Sometimes called the new "gold rush," the striking demand for ownership in new cannabis companies is outpacing supply. However, new investors face a steep learning curve as they approach an industry still in its infancy. Join renowned expert Steven Gormley as he takes you on a deep dive into all aspects of cannabis investing. <p><b>Inside...</b> <ul> <li>Evaluate company strength</li> <li>Choose between public and private</li> <li>Diversify cannabis investments</li> <li>Get fantastic trading tips</li> <li>Understand the regulatory landscape</li> <li>Win with insightful strategies</li> <li>Guidance on investing in countries where cannabis is legal</li> </ul>

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