If SA comes out with a DSS article tomorrow then $$$
Boiler Room: The Official Stock Market Discussion
gubment smells the potential tax revenue down the road
Marijuana Banking Regulations on the Way
By THE ASSOCIATED PRESS
JAN. 23, 2014, 6:38 P.M. E.S.T.
WASHINGTON — Attorney General Eric Holder says the Obama administration is planning to roll out regulations soon that would allow banks to do business with legal marijuana sellers.
During an appearance Thursday at the University of Virginia, Holder said it is important from a law enforcement perspective to enable places that sell marijuana to have access to the banking system so they don't have large amounts of cash lying around.
Currently, processing money from marijuana sales puts federally insured banks at risk of drug racketeering charges.
Because of the threat of criminal prosecution, financial institutions often refuse to let marijuana-related businesses open accounts.
The issue has taken on some urgency now that Colorado and Washington have become the first states to legalize recreational use of marijuana.
Marijuana Banking Regulations on the Way
By THE ASSOCIATED PRESS
JAN. 23, 2014, 6:38 P.M. E.S.T.
WASHINGTON — Attorney General Eric Holder says the Obama administration is planning to roll out regulations soon that would allow banks to do business with legal marijuana sellers.
During an appearance Thursday at the University of Virginia, Holder said it is important from a law enforcement perspective to enable places that sell marijuana to have access to the banking system so they don't have large amounts of cash lying around.
Currently, processing money from marijuana sales puts federally insured banks at risk of drug racketeering charges.
Because of the threat of criminal prosecution, financial institutions often refuse to let marijuana-related businesses open accounts.
The issue has taken on some urgency now that Colorado and Washington have become the first states to legalize recreational use of marijuana.
January 23, 2014 4:33 pm
The risks and rewards of a newly legal high
By Emma Jacobs
Brendan Kennedy’s venture capital firm expects to raise more money following the legalisation of cannabis in Colorado
Three years ago Brendan Kennedy sat his parents down to tell them of his career change.After spending almost half a million dollars on his education (a degree in architecture at Berkeley, a masters in engineering from Washington University and an MBA from Yale Management School), his mother and father – both in their eighties – were baffled by his decision to quit his well-paid job providing valuations of Silicon Valley technology companies to set up a venture capital firm that invests in the cannabis industry.
Despite living in San Francisco, Mr Kennedy’s parents missed out on the hippy era. They were too busy bringing up their seven children and holding down jobs (his father was a science teacher, his mother a relationships counsellor). They could not see the appeal to their son of an industry that was then largely illegal.
Yet Mr Kennedy was convinced. After years in Silicon Valley, researching and analysing the financial value of nascent industries, he felt that the legitimate cannabis business, like electric cars and the social media companies he had seen in their embryonic stages (“it felt like having a crystal ball to see into the future”), would also prove to be profitable and ultimately mainstream.
After discussing his idea with two peers (one from school, another from Yale) who ultimately became his business partners, he decided to start researching the idea of setting up a venture capital firm to invest in legal cannabis businesses, both medical and recreational, while he was still employed at SVB Analytics.
“I had access to every industry database you could imagine and could get no information on the market. There was no research. I started to read dry legal reports.” It was “real boots-on-the-ground research”, he says. Attendees at academic and cannabis business conferences gave him a wide berth, believing that with his smart suit, athletic build and short hair, he worked for drug enforcement agencies. “I certainly met a cast of characters,” he laughs.
Reflecting on the business proposals he has received, he says: “Most propositions are awful.” The companies he came across were “immature”, the entrepreneurs behind them were “unprofessional”. A few asked him to inspect their illegal crops hidden away on farms. Others kept wads of cash. Many people approached him with the same idea, thinking they were the first to have it. “I know more about cannabis-infused chocolate than I ever thought I would,” he reflects.
The 41-year-old spent a great deal of time figuring out the legal position, given that federal law says possession, manufacture and sale is illegal but states vary in their approach.
More than three years later, the Seattle resident, whose company Privateer Holdings has raised $7m in investments and hopes to raise up to $50m more this year, believes his convictions have been vindicated. Cannabis went on sale in stores in Colorado at the beginning of this year, while Washington state is expected to allow sales later this year after voting to legalise the use and possession of cannabis for people aged over 21. The two states are among 20 to have approved marijuana for medical use. The legal market in the US is predicted to reach $2.3bn this year, according to ArcView Group, a cannabis investor network. It calculates that the market will be worth $10.2bn by 2018.
Initially, it was difficult getting investment. The founders all had backgrounds in banking, so drew on their networks and found the best way to meet potential investors was through “blind introductions”, meaning that the people they met were only told they would find the business opportunity interesting but not what it was. “We surprised a few people, but no one kicked us out,” he says. Interested investors generally opted to hold back until they knew if the legalisation initiatives in Washington and Colorado would be passed. “Once those initiatives passed in November 2012, it was much easier – investors started coming to us.”
They deliberately kept their ambitions for funds modest because it was so hard to find sound investments. “We couldn’t trust them [cannabis entrepreneurs]. They had worked illegally for years. It doesn’t make them bad business people.”
So far, Privateer has bought three companies: Leafly, an online ratings site for dispensaries and marijuana strains; Lafitte Ventures, a Canadian operation growing medical marijuana; and Arbormain, which will lease warehousing for legal cannabis businesses.
In all the Privateer companies’ marketing materials there are no depictions of cannabis leaves, no joints and “definitely no Grateful Dead”, he says. “We believe that by investing in smart, professional brands we can hasten change. None of us are hippies, most people who consume cannabis aren’t hippies.”
Mr Kennedy says a lot of people are in the industry because “they want access to the product and culture”. He insists that he is not interested and had not touched cannabis since the age of 19. However, when he started the business he decided he should reacquaint himself with the product. “I tried a few indicas and sativas [two types of cannabis plant] – I felt I needed to see the difference.”
It has been hard to find savvy business people willing to take the risk and work in this new and occasionally murky industry. “It’s not like we could bring a successful CEO in from a public company.” A lot of his effort has gone into building teams and “hand-holding to get things done professionally and legally”.
Mr Kennedy recently brought in a former drugs enforcement officer to work on compliance. “It is a maze even for people who know about the legislation,” he says. Banks have been cautious about getting involved with companies, fearing they might be charged under drugs racketeering or money laundering rules.
Jeffrey Miron, senior lecturer at Harvard’s economics department and author of Drug War Crimes: The Consequences of Prohibition, believes many businesses are wary because the existing laws in these states have restrictions and no one knows “how long federal tolerance will last”. He adds: “A new president, only three years away, can reimpose federal intervention. So rational businesses are still wary of legalisation because it’s not quite real legalisation.”
While Mr Kennedy is concerned with the return on investment, he is also in the business because he strongly believes in the social case for legalisation. “The damage done by the drug laws is worse than the drug itself. The war on drugs leads to high incarceration levels and cannabis prohibition perpetuates race discrimination in the country.”
The “social return” as well as the “capital return”, he says, is what unites his investors, who range from “left-leaning progressives to right-leaning libertarians who would disagree on every topic except for this”. Most prefer to be anonymous. His investors are “motivated” but perhaps, most importantly, patient.
Kris Kane, managing director of 4Front advisers, which advises high-end retailers offering medical marijuana, says the risk attached to the legal status of cannabis means those seeing it as a purely rational business investment are likely to be scared off. Yet like any high-risk business, the rewards could be high if you are able to lay the foundations and become a market leader.
Mr Kennedy says he and his co-founders feel like “agents of change”, adding: “We know cannabis prohibition will end in our lifetime.”
The risks and rewards of a newly legal high
Brendan Kennedy’s venture capital firm expects to raise more money following the legalisation of cannabis in Colorado
Three years ago Brendan Kennedy sat his parents down to tell them of his career change.After spending almost half a million dollars on his education (a degree in architecture at Berkeley, a masters in engineering from Washington University and an MBA from Yale Management School), his mother and father – both in their eighties – were baffled by his decision to quit his well-paid job providing valuations of Silicon Valley technology companies to set up a venture capital firm that invests in the cannabis industry.
Despite living in San Francisco, Mr Kennedy’s parents missed out on the hippy era. They were too busy bringing up their seven children and holding down jobs (his father was a science teacher, his mother a relationships counsellor). They could not see the appeal to their son of an industry that was then largely illegal.
Yet Mr Kennedy was convinced. After years in Silicon Valley, researching and analysing the financial value of nascent industries, he felt that the legitimate cannabis business, like electric cars and the social media companies he had seen in their embryonic stages (“it felt like having a crystal ball to see into the future”), would also prove to be profitable and ultimately mainstream.
After discussing his idea with two peers (one from school, another from Yale) who ultimately became his business partners, he decided to start researching the idea of setting up a venture capital firm to invest in legal cannabis businesses, both medical and recreational, while he was still employed at SVB Analytics.
“I had access to every industry database you could imagine and could get no information on the market. There was no research. I started to read dry legal reports.” It was “real boots-on-the-ground research”, he says. Attendees at academic and cannabis business conferences gave him a wide berth, believing that with his smart suit, athletic build and short hair, he worked for drug enforcement agencies. “I certainly met a cast of characters,” he laughs.
Reflecting on the business proposals he has received, he says: “Most propositions are awful.” The companies he came across were “immature”, the entrepreneurs behind them were “unprofessional”. A few asked him to inspect their illegal crops hidden away on farms. Others kept wads of cash. Many people approached him with the same idea, thinking they were the first to have it. “I know more about cannabis-infused chocolate than I ever thought I would,” he reflects.
The 41-year-old spent a great deal of time figuring out the legal position, given that federal law says possession, manufacture and sale is illegal but states vary in their approach.
More than three years later, the Seattle resident, whose company Privateer Holdings has raised $7m in investments and hopes to raise up to $50m more this year, believes his convictions have been vindicated. Cannabis went on sale in stores in Colorado at the beginning of this year, while Washington state is expected to allow sales later this year after voting to legalise the use and possession of cannabis for people aged over 21. The two states are among 20 to have approved marijuana for medical use. The legal market in the US is predicted to reach $2.3bn this year, according to ArcView Group, a cannabis investor network. It calculates that the market will be worth $10.2bn by 2018.
Initially, it was difficult getting investment. The founders all had backgrounds in banking, so drew on their networks and found the best way to meet potential investors was through “blind introductions”, meaning that the people they met were only told they would find the business opportunity interesting but not what it was. “We surprised a few people, but no one kicked us out,” he says. Interested investors generally opted to hold back until they knew if the legalisation initiatives in Washington and Colorado would be passed. “Once those initiatives passed in November 2012, it was much easier – investors started coming to us.”
They deliberately kept their ambitions for funds modest because it was so hard to find sound investments. “We couldn’t trust them [cannabis entrepreneurs]. They had worked illegally for years. It doesn’t make them bad business people.”
So far, Privateer has bought three companies: Leafly, an online ratings site for dispensaries and marijuana strains; Lafitte Ventures, a Canadian operation growing medical marijuana; and Arbormain, which will lease warehousing for legal cannabis businesses.
In all the Privateer companies’ marketing materials there are no depictions of cannabis leaves, no joints and “definitely no Grateful Dead”, he says. “We believe that by investing in smart, professional brands we can hasten change. None of us are hippies, most people who consume cannabis aren’t hippies.”
Mr Kennedy says a lot of people are in the industry because “they want access to the product and culture”. He insists that he is not interested and had not touched cannabis since the age of 19. However, when he started the business he decided he should reacquaint himself with the product. “I tried a few indicas and sativas [two types of cannabis plant] – I felt I needed to see the difference.”
It has been hard to find savvy business people willing to take the risk and work in this new and occasionally murky industry. “It’s not like we could bring a successful CEO in from a public company.” A lot of his effort has gone into building teams and “hand-holding to get things done professionally and legally”.
Mr Kennedy recently brought in a former drugs enforcement officer to work on compliance. “It is a maze even for people who know about the legislation,” he says. Banks have been cautious about getting involved with companies, fearing they might be charged under drugs racketeering or money laundering rules.
Jeffrey Miron, senior lecturer at Harvard’s economics department and author of Drug War Crimes: The Consequences of Prohibition, believes many businesses are wary because the existing laws in these states have restrictions and no one knows “how long federal tolerance will last”. He adds: “A new president, only three years away, can reimpose federal intervention. So rational businesses are still wary of legalisation because it’s not quite real legalisation.”
While Mr Kennedy is concerned with the return on investment, he is also in the business because he strongly believes in the social case for legalisation. “The damage done by the drug laws is worse than the drug itself. The war on drugs leads to high incarceration levels and cannabis prohibition perpetuates race discrimination in the country.”
The “social return” as well as the “capital return”, he says, is what unites his investors, who range from “left-leaning progressives to right-leaning libertarians who would disagree on every topic except for this”. Most prefer to be anonymous. His investors are “motivated” but perhaps, most importantly, patient.
Kris Kane, managing director of 4Front advisers, which advises high-end retailers offering medical marijuana, says the risk attached to the legal status of cannabis means those seeing it as a purely rational business investment are likely to be scared off. Yet like any high-risk business, the rewards could be high if you are able to lay the foundations and become a market leader.
Mr Kennedy says he and his co-founders feel like “agents of change”, adding: “We know cannabis prohibition will end in our lifetime.”
Domingo Halliburton
Handmade in USA
i feel like i should buy more amd here. PCs and video games are here for awhile.
sbux is a wall st. darling i still believe in them.
Who knows what effect it will have, but could be time to buy EPE. Just disclosed that insider Len Blavatnik, 22nd richest man in the world, bought about 3.7 million shares at $18.15 on Tuesday.
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Its definitely a good entry point for AMD. The turn around is inevitable, just not sure how long it will take.
Domingo Halliburton
Handmade in USA
AMD isn't a big company (relatively speaking) but wall st really uses it to gauge how the the industry is doing.
Domingo Halliburton
Handmade in USA
futures down again today. looks like it could be another ugly open.
The one your down 1200 onWho knows what effect it will have, but could be time to buy EPE. Just disclosed that insider Len Blavatnik, 22nd richest man in the world, bought about 3.7 million shares at $18.15 on Tuesday.
Finally got the courage to buy some weed stock..in fspm at 3 bucks..any dips velow and I'll buy
BBRY and ARIA this week
ARIA!!!
also, I told some of your guys that GOLD should be purchased in the long-term....this is the reason. Additionally, once China and India are done hording all the gold resources ----whew
GoogleMe
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ARIA. Still holding from $2+ average. Buyout rumors with $20 being the rumored price. 25%+ short-interest. This might be a "sell the news" scenario. Careful takeover chatter initiated by Daily Mail
Congratulations my friends.
