Alternative Stocks

Stock

When most people think of alternative investing, stocks are usually never in the mix.

And for good reason.

Stocks are about as “traditional” an investment as you can make.

The Backstory

I remember when I first started investing in stocks back in 1990.

I was just 25 years old and working as an operations manager at Hertz Rent a Car.

My Uncle Bill advised me to invest in “blue chip” stocks that paid a dividend.

But honestly, I could barely afford to scrape together enough cash to buy ONE share of a blue chip stock like GE let alone several.

Wall Street Money Machine

So, I started looking for alternatives and in 1996 I came across a book by a guy named Wade Cook called Wall Street Money Machine.

That's when I got to explore alternative stock investing for the first time.

I focused mainly on trading stock OPTIONS since they were much less than buying the actual stock.

And I perfected a few strategies such as options on stock splits and writing covered calls. I have detailed courses on these two strategies in Elite.

I made so much money on a 4-1 stock split on Unilever (NYSE: UL) in October of 1997, that I rented a beach house for a week!

I also started exploring penny stocks.

Now, penny stocks are cheap but they're tough to figure out.

What Are Penny Stocks?

Low-priced, small-cap stocks are known as penny stocks.

Contrary to their name, penny stocks rarely cost a penny. The SEC considers a penny stock to be pretty much anything under $5.

And while there are sub $5 stocks trading on big exchanges like NYSE and NASDAQ, most investors don't think of these when asked to describe a penny stock.

Most individual investors look at penny stocks like Wall Street's Wild West, an untamed world of investing detached from all the glitz and media coverage that comes with stocks that are traded on major exchanges.

While the gains and losses can be pretty impressive in the penny stock world, they're not often heard about elsewhere.

I dabbled in penny stocks for a few years until I just decided to consolidate my penny stock money and invest it in Fidelity's OTC Portfolio Fund.

 

FOCPX is an “OTC” fund normally investing at least 80% of assets in securities principally traded on NASDAQ or an over-the-counter market, which has more small and medium-sized companies than other markets.

“Over the counter” or “OTC” market is where penny stocks trade.

I was content to let my little $12,000 OTC portfolio be managed by the fine folks at Fidelity and even happier that it averages a 42% return.

That is until I discovered…

Pot Stocks

There are thousands of penny stocks across all sectors of the markets…

Technology, commodities, health, agriculture, energy… you name it.

And what makes penny stocks different from other “brand-name” stocks is that they’re little-known and cheap.

Extremely cheap!

And right now, in the marijuana industry, there are literally dozens and dozens of cheap, penny stocks.

  • Like Terra Tech, (TRTC) which trades for .25 cents per share…
  • VPR Brands LP. (VPRB), which trades for .07 cents per share…
  • Hemp Inc. (HEMP), which you can buy right now for just 3 cents per share…
  • And many, many others

I could go on and on and on…

But here’s what you need to know right now…

These pot stocks won’t stay cheap for long.

See, because these penny pot stocks can go for as little as a few cents to a few dollars…

That means even first time investors can afford to do this.

The best part?

Penny pot stocks have a proven history of handing out truly explosive gains.

In fact, more often than not, they’re the most profitable stocks on Wall Street.

It’s easy to understand why, when you think about it.

With a big “blue chip” stock, it can take years… even decades for a $50 share to double… and turn into $100.

But with a penny stock, a 25-cent share can become a 50-cent share… or even a $2 share overnight.

In fact, it happens all the time.

Here’s the bottom line:

Penny stocks are the last legal way for the little guy to grow rich… starting with just a few dollars in your pocket.

Now, as good as that is…

There IS one problem…

It can be difficult to pinpoint the exact moment to invest in penny stocks.

But that’s what makes today’s situation with the marijuana markets so exciting!

It’s all happening right now!

The Green Rush is On!

A record-breaking eight states just passed marijuana legalization.

States like Arkansas, Massachusetts, Maine, Nevada and of course California – the most populated state in the country – just changed the future of legalized marijuana.

I can tell you with 100% conviction that it’s just a matter of time before recreational pot is legal in all 50 states.

Already, these penny pot stocks have started an incredible run.

Some have doubled and even tripled in price.

If history is any guide, this is just the beginning.

How can I be so sure?

Well, just look at what happened back in 2014…

When an almost identical situation took place.

Dozens and dozens of marijuana penny stocks simply exploded like gangbusters after Colorado passed similar legislation.

9,108% Gains in Just Three Months with a Tiny Marijuana Penny Stock

Now, you’ve probably never heard of a company called Abattis Bioceuticals Corp…

Back before January 1, 2014, practically no one had.

They were an obscure marijuana biotech stock – trading for just 2.5 cents per share…

But immediately following full legalization in Colorado, share prices took off.

  • Within the first week, prices more than doubled…
  • Within the first month… they were up over 379%.
  • Within two months — by the end of February — share prices had surged 1,358%.
  • And by the tail end of March — not even a full 3 months later — share prices got higher than Cheech and Chong at Woodstock…
  • And… topped out at a massive gain of 9,108%.

By comparison, it took Apple (one of the greatest stock success stories of the 21st Century) over 15 YEARS to produce those kinds of returns…

But Abattis Bioceuticals was able to do it in less than three months…

That’s the power of penny stocks.

And here’s the thing…

This didn’t happen just once or twice… or even three times…

There were literally dozens more opportunities just like Abattis Bioceuticals.

My Pot-Folio

Here are two pot stocks from my pot-folio – MCIG and MJNA. Not quite 9,108% gains but I'll take 55% and 88% any day of the week and twice on Sunday.

The bottom line is this… weed is here and just like kudzu is slowly but surely sweeping the nation.

That’s why I’ve given you this example – because I want you to see for yourself the amazing potential of marijuana penny stocks.

Now the clock’s ticking.

The next wave of marijuana wealth is taking place right now!

And remember…

Marijuana stocks skyrocketed when Colorado legalized marijuana.

That was just one state.

Now we have a total of eight states that have approved fully legalized recreational pot laws

The entire west coast has become a recreational pot mecca… and it’s spreading to the east coast.

Not only that, but Arkansas just became the first “bible belt” state with legalized medical marijuana.

Even more exciting is that California is now on board— representing 1/6th of the entire American population.

The amount of money you could make…

The profits…

Are simply staggering.

Need More Proof?

As research firm ALG Financial put it, “The second revolution in the cannabis market is here… there is hardly anyone on Wall Street who doesn’t see the huge potential windfalls that are on their way.”

ArcView — a data and analytical research firm — is touting that we’re about to witness the true birth of “the next great American industry.”

John Ingold at The Denver Post reported that one business mogul in the markets believes the marijuana industry could “mint multiple billionaires…”

And Forbes contributor Mark Fidelman adds that it “will make investors extremely wealthy.”

So here at the Investor Insights, we are totally high on pot stocks. 😉

Other Alternative Stock Plays

I talk (and write) a lot about penny pot stocks because I love them and I publish a premium cannabis stock investment newsletter and trade alerts service you can learn more about.

But we also have a few other alt stock tricks up our sleeve – specifically baby bonds and private income funds.

Be sure to watch the blog for great alternative stock investing tips and tactics.

 

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