by David Downs
Yesterday I was interviewed by TheStreet.com on marijuana investment opportunities and I urged caution and detailed the notoriously low reporting requirements for unlisted marijuana-related stocks. Turns out, people do not care.
“It’s people freaking out, thinking they found the next home run and doing no research,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said. “There might be one or two that survive, but having seen crazes like this, people have been burned by them a lot. The average investor should think twice.”(via Bloomberg)
The Financial Industry Regulatory Authority issued an alert in August saying investors should beware of potentially fraudulent purveyors of stocks connected to pot and related services. Scammers may be promoting the shares, then selling them in what’s called a “pump-and-dump” scheme, the brokerage watchdog organization said in an e-mailed statement. It didn’t name any companies."