Gambling on Pot Stocks — Are They Worth the Risk?
by Angel Clark
It’s somewhat alarming when a friend, one who has never had a passing thought about the stock market, asks me to show her how to buy “pot stocks.” I saw dollar signs glowing like neon lights in her pupils. Apparently, my friend’s co-worker was boasting to everyone in the office that her profits on a Cannabis stock she recently bought would end up paying for her kids to go to college. (I thought to myself, “Is she high?”)
Her co-worker bought shares of a $0.05 cannabis company that has since hit an incredible high (pardon the pun) of $0.20. I didn’t quiz my friend on the details of the trade, but let’s suppose her co-worker bought 100,000 shares of CBIS at $.05 (just to give you some idea, the 50-day moving average of volume has increased from 3 million to 26 million in just the past month).