Investing in High Times?

[an0maly]

So I saw an ad today about High Times taking on investors before they go public on the market. Just had my morning Sativa session, and it sounded like a really excellent idea. So I bought 100 shares @ $11 each. Now I'm wondering if I did a dumb thing. Fuck I really hope this legal cannabis thing takes off...

If you haven't seen the ads, here's a link to what I'm talking about.

https://hightimesinvestor.com

 

[ginolicious]

Interesting.

Well cannabis will be legal in Canada real soon. Next month. So....

 

[an0maly]

Interesting.

Well cannabis will be legal in Canada real soon. Next month. So....

I didn't think about that. Sounds like there could be some profit to be made with this investment sooner than I thought. Nice.

 

[steama]

I think the genie is completely of of the bottle.

 

[FlyingLow]

Frankly, I think the offering was high and I withheld... especially after watching the roller coaster that MedMen went on. They may come on the market at $11, but I think it will take a hit before stabilizing and doing well in the long run.

I do think HighTimes will do well in the long run, but once public I think the market is going to make a quick price correction to their proud $11 share price. I would guess anyone that invests will do well with this one, as HT is a staple of the community and is not going anywhere. They are a force within the industry, and I will eventually buy. But I am hoping patience will allow me to get into this one between $7-8.

 

[an0maly]

Frankly, I think the offering was high and I withheld... especially after watching the roller coaster that MedMen went on. They may come on the market at $11, but I think it will take a hit before stabilizing and doing well in the long run.

I do think HighTimes will do well in the long run, but once public I think the market is going to make a quick price correction to their proud $11 share price. I would guess anyone that invests will do well with this one, as HT is a staple of the community and is not going anywhere. They are a force within the industry, and I will eventually buy. But I am hoping patience will allow me to get into this one between $7-8.

You're probably right. I didn't think about looking at how others have performed. Oh well. I guess investing in cannabis while on cannabis is probably not the best idea...

 

[FlyingLow]

I honestly do think this will be a win/win stock for ya, even at their initial offering price.
I believe you will get a return on your investment, just a matter of how quickly.

 

[Mr. Gweilo 420]

Imo this is a terrible investment.

 

[an0maly]

Imo this is a terrible investment.

Why do you say that?

 

[ginolicious]

Frankly, I think the offering was high and I withheld... especially after watching the roller coaster that MedMen went on. They may come on the market at $11, but I think it will take a hit before stabilizing and doing well in the long run.

I do think HighTimes will do well in the long run, but once public I think the market is going to make a quick price correction to their proud $11 share price. I would guess anyone that invests will do well with this one, as HT is a staple of the community and is not going anywhere. They are a force within the industry, and I will eventually buy. But I am hoping patience will allow me to get into this one between $7-8.

I kinda agree. I wouldn’t mind waiting for a drop down to $7.

How frequent would these stocks pay out? .5% annually?

 

[an0maly]

I kinda agree. I wouldn’t mind waiting for a drop down to $7.

How frequent would these stocks pay out? .5% annually?

I don't see any mention about dividends. I could be wrong, but I don't think it's common for companies that are just deciding to go public like HITM to offer dividends right away.

 

[steama]

I don't see any mention about dividends. I could be wrong, but I don't think it's common for companies that are just deciding to go public like HITM to offer dividends right away.

When you invest in High Times what exactly are you investing in?

 

[ginolicious]

Pretty sure it’s the stock market. They are allowing you to buy shares before they go public on the stock exchange. Correct me if I’m wrong but that’s how I understood it.

 

[an0maly]

Pretty sure it’s the stock market. They are allowing you to buy shares before they go public on the stock exchange. Correct me if I’m wrong but that’s how I understood it.

Yup. Exactly. I think it's an IPO. Just not like the average IPO where "normal" people don't get a chance to invest. At the level I invested, I also get some free High Times stuff and a plaque that says I'm High Times early investor. Invest $100k and I think you get lifetime VIP access to the Cannabis Cup. That actually sounds pretty sweet.

 

[His_Highness]

One of the most important and toughest aspects for a company and it's product(s), is branding. I'd say HT is way ahead of the curve on that one. Everyone wants to talk about "leveraging the brand" or "establishing the brand" but they've already done it.

The magazine and online presence will become more valuable as the number of MJ companies grow and the companies themselves grow because that will likely translate into much larger advertising dollars for HT.

Other than the magazine/online presence, have they announced anything else in terms of approaches and a possible product pipeline?

Being one of the first companies with a solid brand in a newly forming industry can allow the company to get ahead, and stay ahead of their competition.

 

[an0maly]

One of the most important and toughest aspects for a company and it's product(s), is branding. I'd say HT is way ahead of the curve on that one. Everyone wants to talk about "leveraging the brand" or "establishing the brand" but they've already done it.

The magazine and online presence will become more valuable as the number of MJ companies grow and the companies themselves grow because that will likely translate into much larger advertising dollars for HT.

Other than the magazine/online presence, have they announced anything else in terms of approaches and a possible product pipeline?

Being one of the first companies with a solid brand in a newly forming industry can allow the company to get ahead, and stay ahead of their competition.

Yeah. Looks like they plan to increase the number of festival-type events like the Cannabis Cup. From 4 events in 4 locations in 2016 to 2019 (projected) 23 events in 14 locations.

 

[His_Highness]

Here's 2 links...... One article from Leafly that speaks to some of the red flags. And another shouting them out. I consider Leafly a competitor of sorts so even though there is good info here you might want to consider the source in terms of presentment.

The Leafly article is around 7 months old. Based on the article I'd guess that the folks who are waiting for the formal IPO, expecting lower stock prices, may have a point based on "current" valuation.

One thing I definitely take with a grain of salt here is the statement that the Pre-IPO share price of $11 is 10% below the expected IPO price. I would not buy any stock based on this statement. The "expected" IPO price will change multiple times as they start to gauge how many will subscribe to the IPO and for how many shares/how much. They will likely manage the IPO shares to try and cause a pop on day 1 BUT that pop-price could be lower than $11 and the pop is never guaranteed.

One way to gauge this is by who HT hired to manage the IPO. The larger reputable companies will not get involved with shady/slick offerings. The other consideration is whether the intention by new management is to go public to grow the company or dump/sell it at a huge gain after selling as much stock as possible. Happens all the time......

The fact remains that the potential is there for HT to grow and be a good investment if that's the intention.

https://www.leafly.com/news/industry/investing-in-high-times-puff-or-pass

https://seekingalpha.com/article/4206041-high-times-reg-ipo-mess-avoided

 

[an0maly]

Here's 2 links...... One article from Leafly that speaks to some of the red flags. And another shouting them out. I consider Leafly a competitor of sorts so even though there is good info here you might want to consider the source in terms of presentment.

The Leafly article is around 7 months old. Based on the article I'd guess that the folks who are waiting for the formal IPO, expecting lower stock prices, may have a point based on "current" valuation.

One thing I definitely take with a grain of salt here is the statement that the Pre-IPO share price of $11 is 10% below the expected IPO price. I would not buy any stock based on this statement. The "expected" IPO price will change multiple times as they start to gauge how many will subscribe to the IPO and for how many shares/how much. They will likely manage the IPO shares to try and cause a pop on day 1 BUT that pop-price could be lower than $11 and the pop is never guaranteed.

One way to gauge this is by who HT hired to manage the IPO. The larger reputable companies will not get involved with shady/slick offerings. The other consideration is whether the intention by new management is to go public to grow the company or dump/sell it at a huge gain after selling as much stock as possible. Happens all the time......

The fact remains that the potential is there for HT to grow and be a good investment if that's the intention.

https://www.leafly.com/news/industry/investing-in-high-times-puff-or-pass

https://seekingalpha.com/article/4206041-high-times-reg-ipo-mess-avoided

Hmm. Wish I had read that Leafly article before I bought in on the IPO. Oh well. At least I will have that nice plaque for my wall that says I was an early investor. No one will ever be able to take that away from me. That and the other special early investor merchandise. LOL