Faded marijuana stocks shouldn’t come as a big surprise. There’s a discrepancy between the allures of a perceived expanding market, and the price a post-prohibitonary product could fetch. As retail investors are keen to point out, it’s too soon to tell how the federal administration will influence the cannabis industry in a post 2016 election period.
By TIMOTHY J MULLANEY | February 28, 2015
Buzz about the legal marijuana market is growing fast, but for retail investors none of the plethora of pot stocks on the market looks ripe for harvest yet.
The hype has been building since cover stories in Fortune and USA Today on Privateer Holdings, the nation’s first private equity fund for marijuana, ran within days of each other in 2013. In January 2015 it got a fresh hit from an announcement that Silicon Valley-based Founders Fund, led by PayPal co-founder Peter Thiel, is participating in a $75 million funding round to help Privateer expand.