Is Medical Marijuana a Financial Fix For Ailing Resource Jr'Interesting read. Full article @ link below:
A few junior resource explorers and project developers are hopping on the medical marijuana bandwagon in what could turn out to be a last-ditch effort to stave off extinction. For speculators looking to make some quick cash, though, the ride could turn into a ‘bad trip’.
Sparking this recent ‘pot stock’ boom was a decision by Canadian regulators to allow licensed producers to grow medical marijuana on a commercial basis beginning on April 1, 2014. On that day, Health Canada said the 40,000 Canadians currently licensed to grow their own medical marijuana will have to dispose of their present stash and get future medicine from commercial growers.
According to cannabis industry research firm ArcView Market Research, the legal market for cannabis in the United States alone could expand 64% this year to US$2.34-billion, and 700% to $10.2-billion over five years.
For the select group of resource juniors looking to go this route, history suggests that this could be another sign of a market bottom for the sector. In a recent Financial Postinterview, mining analyst and newsletter writer John Kaiser sees this as being similar to the ploys by resources companies in the late 1990s and early 2000s to jump on the dot-com boom following the Bre-X sample salting scandal. After the dot-com bust, the junior resource sector began what turned out to be a five-year bull market that ended in 2007.
https://www.smallcappower.com/posts/article-medical-marijuana-28-3-2014