Publisher's Note: We're fortunate enough to have access to the legendary Mr. James Dines and his renowned research. Mr. Dines is "The Original Pot Bug." His early stance against use but in favor of investments led to massive gains for the readers of The Dines Letter. This excerpt from his newsletter is practically required reading for investors who have been on the fence r
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Living Legend James Dines: A Situation Right Up Our Alley
By James Dines
Written Dec. 01, 2018
Publisher's Note: We're fortunate enough to have access to the legendary Mr. James Dines and his renowned research. Mr. Dines is "The Original Pot Bug." His early stance against use but in favor of investments led to massive gains for the readers of The Dines Letter.
This excerpt from his newsletter is practically required reading for investors who have been on the fence regarding pot stocks. As Mr. Dines will show you, that should be everyone who hasn't invested already.
To your wealth,
[Nick Hodge Signature]
Nick Hodge
Publisher, Outsider Club
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A doctor told his patient to stop smoking. He added, “As long as
you’re quitting, I’ll give you five bucks for your gold lighter!"
– Henny Youngman, Humorist
The Latin noun insula, meaning “island,” describes a small body of land entirely surrounded by water. A “peninsula,” from the Latin words paene (“almost”) and insula (“island”), is an island linked to the mainland.
It is probably true for many people worldwide that they believe in some way that their area — or country — is some kind of island, or peninsula. That could in a way be likened to blinders on a horse, restricting its vision to reduce distractions from its driver’s direction.
Insularity can be germane to investors. For example, we became “The Original Uranium Bug” at $8/lb before it rose 1,650% to $140/lb, and we have recently been patiently waiting for the group to rise again. Every other prominent analyst shunned our uranium recommendation at first, because atomic power was so politically incorrect in America — and still is. But not in China, which is still building atomic power plants as fast as possible, in desperate need of cleaner power, while also seizing dominance of the world’s atomic power industry.
[The Conspiracy to End America](
Conspiracy. It’s the only word for it. Hostile powers including Russia, China, and Iran are plotting to knock out the American economy.
On September 1st, 2017, they went public.
When this comes to a head in the next few months, it will be worse than 9/11, Lehman Brothers, and Pearl Harbor… combined.
[Watch this urgent briefing to get all the facts.](
One of The Dine's Letter's (TDL) key values is to be unafraid to be first, to print the truth whether unpopular or not, in the hope that those who were endarkened would become enlightened. Daring to locate new growth areas that timid security analysts are slow to recommend, due to the Low State of Hyperneeding To Be Liked, has provided us with the greatest opportunities of profitable investments.
Pot stocks are just one of the many successes that we have had by doing just that. Pot is yet another example of something viewed negatively in America, but not in some other nations, for example, Canada and Uruguay. The Caribbean is also known worldwide as a place to obtain marijuana because it is so easily grown in those tropical climates. Sales of marijuana are actually expanding to Europe, from Austria to Italy and Germany! For example, Cronos, a medical marijuana producer, lists on its website that it sells to Europe through its subsidiary in Israel. We challenge anyone to discover this information prominently in the mass media these days. Marijuana is also gaining favor in Africa where, last year, Lesotho became the first nation on that continent to issue a license for medical marijuana. Then, Zimbabwe legalized cannabis production for both medical and scientific purposes. We’ve rarely seen such insularity in America’s mass media, but sneak mentions have begun, and we have detected them.
The biggest deterrent for us was that cannabis is federally illegal in the United States. But we strive to unemotionally report and predict, and our close study of the public’s trends unmasked that its acceptability was in an uptrend! Like a cat patiently watching outside a mouse hole, your editor pondered year after year as more Americans favored marijuana’s legalization. We also studied America’s history of Prohibition that had outlawed alcoholic beverages, and concluded that cannabis’ legality was likewise inevitable, whether TDL approved of it or not. Despite cannabis being classified in the same legal category as hard drugs such as heroin, we dared to conclude that marijuana would soon be legalized, due to the aforementioned entrenched uptrend in its acceptance. Meanwhile, many financial institutions even now continue to shun investing in pot — brokers won’t even accept customers’ requests to buy pot stocks — a situation right up our alley!
It took guts, as we dared not only to recommend cannabis investments, but definitively in-their-faces pronounced ourselves “The Original Pot Bug.” We did not recommend its use, and are not here to convince anybody of its propriety, pro or con. Instead, we just stuck to predictions of what would happen that might be useful so TDLers could decide on the investing opportunities. Nonetheless, this offended some TDLers, but it was not lost on us that Canada had already leaped ahead of America, and was even selling it internationally! So we recommended some Canadian pot stocks. We lamented that America has an insular pattern of not thoughtfully supporting certain industries; such as atomic power, Rare Earths, and pot. We grind our teeth at the resulting lost job opportunities for American workers. At least other TDLers worldwide might have been inspired to influence their own governments.
[Far Beyond Drones...](
Now, I’m sure you already know a little bit about drones — they’ve been in the news for more than a decade now. But this technology has grown exponentially... we’re way past the big, expensive drones used for air strikes during the Bush and Obama days.
I’m talking about relatively inexpensive, infinitely deployable, mission-specific defense robots that are now being used by the U.S. military in every part of the globe. According to the Wall Street Journal, many economists are even calling this the “second machine age.”
All told, it adds up to a whopping $127.3 billion. I hope I’ve gotten your attention — because [I’d like to show you how to make 9x your money on major defense contracts coming through the pipeline.](
The first crack appeared as some American states allowed “medical marijuana,” followed by the legalization of non-medical pot in states like Colorado, Washington, and Oregon. The neurotic result is a Federal government that remains negative, but states positive. America needs to strengthen its corpus callosum!
Finally, a majority of American states now allow medical use, and ten states (plus DC) already allow recreational use of marijuana. The legal pot industry is expected to bring in $11 billion this year, with hundreds of millions of dollars in new tax revenue to individual states, ensuring that politicians would bitterly resist efforts to stop their pot sales. Moreover, decriminalization would further help balance government budgets by reducing expenses due to the emptying prisons of non-violent pot offenders with petty convictions. Even President Trump is now in support of the marijuana industry in states where it is legal!
Another example of the change in public opinion is John Boehner, the prominent Ohio republican who was a respected Speaker of the House of Representatives. In 1999, he voted against medical marijuana in the District of Columbia and, as recently as 2011, Mr Boehner said he was “unalterably opposed” to legalization. However, Boehner recently announced he would join the board of a pot company to benefit veterans with post-traumatic stress disorder! Finally, Chuck Schumer, the Senate’s top Democrat, plans to introduce a bill taking marijuana off the Federal list of controlled substances, a big step toward decriminalizing its use!
Cowards who decline to recommend pot stocks only because there is no absolute legal certainty might be left behind. We instead recommend that those portfolios able to accept the risks involved consider maintaining a position in this group. We winnowed down the field over recent years, and especially singled out Canopy (WEED.TO, TWMJF) when it was around $2 a share, and it subsequently rose 1,516% to as high as $35.88, becoming a “killing”! Canopy recently accepted a whopping $200 million investment from Constellation Corp. One of the world’s largest beverage companies, Constellation actually deserves credit for bravely defying the thorny illegality of marijuana in certain quarters with their investment. We predict this field is going to be settled as a matter of states' rights, and that opposition to marijuana would eventually go up in smoke.
We actually did express one opinion, that we were adamantly against smoking or vaping anything at all, for personal reasons; also because with the best health possible your assets will mean more. That includes pot, even though it is said not to be addictive, as is tobacco. Our prediction is: disfavor toward smoking will spread to pot along with tobacco. And that pot consumption would instead move toward edibles, pills, tinctures, pain-relieving creams, and vaping. We predict that investing in companies that are merely selling the raw materials that will be commoditized at low prices would become the least attractive to investors in the long term. A problem we anticipate with edibles is that consumers can’t be sure how strong the contents are, and inexperienced consumers might try to drive vehicles under their influence, with tragic results. So, along with smoking it, we are not overly positive on pot edibles as investments either.
[TMM - Triple Threat 2017 - ad %234 - 11.28.17](
Our prediction is, eventually, tinctures containing the active marijuana substance, very precisely measured, and socially discreet, would be among the most profitable areas. Our guess is that tobacco and beverage companies, as they diversify into marijuana products to keep their customers, would gravitate toward adding pot tinctures to their products. We also expect some kind of educational campaign for each user to determine precisely the specific amounts that would impact them, which is also true for alcohol.
As we have long predicted, the pharmaceutical industry would be the most aggressive participant of all, creating pills of precise doses, and paying big money to quickly acquire many pot stocks — a potential jackpot to those who owned the ones being acquired! The charts show the phenomenal gains that have been available. $10,000 in Canopy, for example, would have netted you $161,622! Nonetheless, when to take profits is entirely your responsibility, with the goal of getting as large a “slice” of the maximum profit as you could manage. Some TDLers will just hold long term, riding out the ups and downs, while others try to sell near a top. These decisions are entirely yours, ALL WE COULD HOPE TO FAIRLY DO IS TRY TO LEAD YOU TOWARD OPPORTUNITY.
We do note that pot stocks have been drifting lower since their last top, and the more they drop, the sooner they’ll arrive at their bottoms, before resuming long-term projected upswings. Try to buy when they’re low again, as we have done on past pullbacks.
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James Dines is legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He is the author of five highly regarded books, including "Goldbug!," in addition to his popular newsletter, The Dines Letter, and videotaped educational series. Dines' highly successful investment strategies have been praised by Barron's, Financial Times, Forbes, Moneyline, and The New York Times, among others.
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