Mountains Of Money Amassing For Marijuana Investment

The cannabis sector is off to a great start in 2014. I will provide my typical monthly review next week, but I wanted to address a key issue separately. While ending prohibition, which Colorado has done and which Washington is currently implementing, is an obvious first step, it takes a lot more than legal change: It takes capital. The mainstream media is certainly picking up on this, with Time Magazine recently discussing it in a feature story.

The industry is in transformation, with production shifting from the black market to the for-profit sector. As I will describe, this is creating opportunities, though perhaps more for private investors than public investors. Still, as I detail, some publicly-traded cannabis stocks appear to be poised to capitalize on these changes.

I visited Colorado last week and met with both publicly-traded and private companies. I visited Pablo Duran’s “Garden of the Gods” dispensary in Denver and witnessed how a large-scale grow operation works. Here is what it looks like from the outside:

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