Kent Holesinger of Loveland has made more than $100,000 on a medical marijuana stock, and he is betting on a green future. He doesn’t even smoke pot. “I spent months doing research and trying to find the right company,” said Holesinger, who works a regular job as a security guard.
About five years ago, he invested in a company called Medical Marijuana Incorporated. “It deals mostly in patents,” Holesinger said. “I bought in at 2 cents a share. At its high, it hit 50 cents a share. So that is a huge growth.”
He estimates that his total earnings top $100,000. Still, certified financial planner Michael Tarantino with Home State Bank reminds that the stock is a “penny stock” — one worth less than a dollar. Those stocks, especially in the marijuana industry, are a gamble, he says.
“They’re trying to attract these investors to purchase these penny stocks, inflate the prices just by title alone, at which time the insiders will get out and leave unsuspecting investors with worthless stock,” Tarantino said.
He says clients are asking him about marijuana-related stocks just about every day. He gives the same advice. “Stay away. Stay far away,” Tarantino said.
But Holesinger is taking the optimistic view, though he knows the risks associated with the stock market. Within the next 10 years, it is not that unrealistic that my stock could make me a million dollars,” Holesinger said.
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