A fight worth winning

Wednesday, 11 April 2018
Melbourne, Australia
By Ryan Clarkson-Ledward

  • Puff protest
  • Can’t harsh our mellow
  • Fight for your right

Hello there, Ryan Clarkson-Ledward here, covering for Bernd Struben as he takes some well-earned time away with his family.

I’m not to be confused with our other Ryan (Dinse) at Port Phillip Publishing.

Most of my time here at PPP is spent helping Sam Volkering analyse the latest and greatest stocks for our subscribers.

Whether it’s Aussie small-caps, high-risk high-reward microcaps or breakthrough technology stocks, we’ve got it covered.

You can also find more of my work over in Tech Insider. A daily e-letter that aims to share tech news that’s worth listening to, in terms that everyone can understand.

But enough about me, that’s not what I’m here to talk about.

Today I’m going to talk to you about cannabis…

But before I do, let’s take a look at the markets.

Markets

The Dow Jones Industrial Average surged overnight, closing 428.9 points higher, or 1.79%.

The S&P 500 closed up 43.71 points, or 1.67%.

In Europe, the Euro Stoxx 50 index closed up 23.93 points, netting a 0.7% gain. Meanwhile, the FTSE 100 rose 1%, and Germany’s DAX index rose 1.11%.

In Asian markets, Japan’s Nikkei 225 is down 56.22 points, or 0.26%. China’s CSI 300 is up 0.73%.

In Australia, the S&P/ASX 200 is 29.60 points lower at time of writing, or 0.50%.

On the commodities market, West Texas Intermediate crude oil is US$65.36 per barrel. Brent crude is US$70.78 per barrel.

Gold is trading for US$1,342.35 (AU$1,730.28) per troy ounce. Silver is US$16.65 (AU$21.46) per troy ounce.

The Aussie dollar is worth US$77.49 cents.

Bitcoin is US$6,837.26.

Puff protest

On 16 August 1964, a man named Lowell Eggemeier was about to make history.

The scruffy 28 year old strolled into the San Francisco Hall of Justice, lit up a joint and coolly asked to be arrested. Telling a baffled police inspector:

I am starting a campaign to legalize marijuana smoking.

I wish to be arrested.

A wish that was quickly granted by the officer. He hauled Eggemeier off to jail for possession of pot. The first ever pot protest.

Eggemeier served just under a year in prison for his defiant act. But, it seems his time behind bars dampened his spirited activism. He returned to a quiet life and faded into obscurity.

But his action was the spark that began a movement that would last half a century. See, Eggemeier’s protest hadn’t gone unnoticed.

James R. White III, a libertarian attorney, followed the case closely. Eventually he filed a petition for unlawful imprisonment to the California Supreme Court, demanding Eggemeier’s release.

White argued that marijuana shouldn’t be unlawful. He called its illegal status a violation of the 8th Amendment’s ban on cruel and unusual punishment. Citing evidence that marijuana was less addictive and toxic than tobacco.

The court was having none of it though. They rejected White’s petition and Eggemeier served his time in jail.

White wasn’t going to give up so easily though.

He created the ‘Legalize Marijuana’ or LeMar group. A group that would eventually go on to launch the first-ever ballot push to legalise weed in 1972. And while they ultimately failed, support for the movement was stronger than most expected.

The revolution was underway…

Decades passed and debates raged. Today, the fight still continues. Though the movement has struck a few victories over the years.

Today in the US, medical marijuana is now openly legal in 29 states. 17 other states allow it, but are more restrictive.

And 9 states have gone above and beyond, legalising recreational use entirely. With Colorado and Washington setting the trend in 2012.

But I doubt anyone could have predicted the wealth opportunity it would bring…

Can’t harsh our mellow

Despite Colorado and Washington passing the law to legalise weed in 2012, things moved slowly. And it wasn’t until late 2013 / early 2014 that things started to kick-off.

Growers, sellers, buyers had all been waiting for this moment. And there were fortunes to be made.

Investors and the market were going nuts. They couldn’t get enough of the pot stock frenzy. But then the bubble burst…

The SEC started clamping down, investors were scared off, and the market went into hibernation. Just take a look at the Global Cannabis Stock Index:



chart image

Source: New Cannabis Ventures
Click to enlarge

As you can see there was one almighty bubble in 2014. One that quickly popped and led to more stable levels of volatility.

What you may note though right at the tail end is a recent spike as well. Which has been followed by a correction. Here’s another graph to give you a better look at that:



chart image

Source: New Cannabis Ventures
Click to enlarge

When you frame it like this, things look a little bleaker. We can see a sharp rise followed by a pretty harsh overall correction. And more importantly, the graph doesn’t give a strong indication that we’ve hit floor just yet.

In short, pot stocks are experiencing some serious volatility right now.

Despite that, investors shouldn’t be too worried.

Even after the pullback, the market is tracking well above where it was this time last year. And keep in mind this is an index. It’s tracking the average price of the whole sector. When you find an exceptional stock though, there is nothing average about its returns.

Right now in Australian Small-Cap Investigator we have an ASX listed pot stock that is sitting in excess of a 400% gain. Similarly, Revolutionary Tech Investor has a Canadian pot stock that also has over a 200% gain.

Both of which we’ve only recommended last year. Exceptional results, in our view.

But we believe the best is yet to come…

Fight for your right

Today the world is finally realising just how miraculous cannabis truly is. It may have taken us over half a century to get here, but the tide is turning.

In July all eyes will be on Canada as it aims to legalise recreational cannabis nationally. A monumental moment that could very well open the floodgates to wider cannabis acceptance.

That doesn’t mean the fight is over, though.

Access to even medical marijuana still isn’t up to scratch. Whether it’s in the US, Canada, Australia or anywhere frankly, people shouldn’t be denied access.

I could talk about all the incredible research that’s already been done. Or bring up any number of studies that are currently underway. But I won’t.

Instead I’d like to leave you with something more human.

A brief story that takes you to the frontlines of this fight. A glimpse into the lives of people who really need this fight to be won.

Please, take the time to read this excerpt from our latest Australian Small-Cap Investigator update:

It’s every parent’s worst nightmare. Having to watch your child suffer while you are helpless to provide relief.

For Stephen and Karen Taylor though, it’s an everyday reality. Not just for one child but for two.

Their daughters — Morgan and Ariel, aged 21 and 25 respectively — both suffer from Crohn’s disease. A crippling auto-immune disorder that has seen them hospitalised countless times over their relatively short lives. Sometimes in extremely dire circumstances, as Stephen describes:

‘A couple of times there I carried Morgan into hospital weighing around 32 kilograms — actually carrying her in my arms and crying.’

Heartbreakingly, there is no cure. Instead both Morgan and Ariel have relied on a concoction of drugs that were meant to ease their pain. They didn’t…

The recommended drugs only made things worse, much worse.

Morgan was crippled by arthritis caused by the drugs. Her knees swelled up to the point where she couldn’t even walk on her own two feet.

Another drug caused a serious case of anaphylaxis. Her swollen throat made it incredibly hard to breathe, let alone eat.

It’s not just the drugs either. Both girls have had surgery. Ariel had her colon removed entirely, while Morgan has a stoma bag attached to her small intestine.

Neither of them hold much hope for a normal life, with Morgan telling the 7:30 report:

‘I kind of say I’m not living anymore, I’m just surviving.’

Their dad, Stephen, never gave up hope though. Doctors and scientists may have failed his daughters, but he wasn’t about to.

Desperate to give his daughters respite, Stephen started looking where no one else would. He began researching medical cannabis.

No doctor would recommend the treatment though, despite it being completely legal.

So Stephen did what any desperate parent of a terminally ill child would do. He grew it himself.

He started juicing marijuana plants three times a day for both girls. The results were, quite frankly, miraculous.

After a month Morgan began exercising and gaining weight. Stephen believes she even went into remission.

At the very least the suffering had subsided…

Regards,

Ryan Clarkson-Ledward,
Junior Analyst, Australian Small-Cap Investigator