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Long. Dividend investor. Tobacco. Beverage, Energy services, REITs, Day trade the mmj sector
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  • MCIG, And Where It Could Boldly Go?

    If your reading this blog, your probably familiar with MCIG, and the 10$ vape pen they make for dry leaf and herb. While not the greatest vaporizer, at ten dollars its very popular. Selling out their entire inventory.

    Now they have rolled out the VitaCig. A colorful vitamin delivery system with names like "Refresh, Relax, and Energize". Early returns are positive. So what could the future look like?

    In April, they announced the LiqCig. A calorie free, alcohol delivery system. You will now be able to vape your favorite alcoholic beverage.

    Now this is here where my imagination starts to run away with me. I don't know if any of this is even possible, but here we go.

    I foresee branding deals, with the likes of BF.B, DEO, and STZ. Imagine a black LiqCic with the Jack Daniels logo on it. Or Johnny Walker, or your favorite Cabernet?

    What about a white vape pen with the green Starbucks logo, as you vape a latte, or dark roast coffee?

    At .44 MCIG is under valued. It doubles in a month. In two years my target is five dollars.

    Disclosure: I am long MCIG, BF.B.

    May 26 12:47 PM | Link | 8 Comments
  • Marijuana And Big Tobacco

    Marijuana and big Tobacco

    We often hear rumors of the giant tobacco companies getting into the lucrative marijuana business, and I thought "What are the odds". And the answer is in my opinion 100%. It's not if, but when.

    Currently 20 States allow marijuana for medical purposes, with another 13 considering it, Two allow recreational use, with another four to six possibly putting it on the ballot sometime between 2014 and 2016. Should just two or three more pass legislation allowing recreational use, and the toothpaste will be out of the tube.

    So why big Tobacco? As Jason Bond points out in his excellent article on Grow life, (OTC:PHOT) there is about to be a huge moat of entry for any would be interlopers. Only the deepest of pockets will be able to move quickly, and most important move first. That's where the tobacco companies come in. They already sell a highly addictive, deadly product with a serious social stigma and it bothers them not. They have the money, infrastructure, distribution, lobbyists, lawyers, shelf space, and all the rest. Cigarette consumption is declining. New revenue streams are required to pay share holders the handsome dividends they are accustom to. They have no choice but evolve or die. ecigs are an attempt to offset this, likewise weed. Phillip Morris is an international company that could quickly move into Canada or Uruguay on a moments notice, while US laws and banking regulations evolve. First mover will dominate. Other players of interest could be big pharma or the alcohol industry.

    Disclosure: I am long PM.

    Tags: PHOT, PM, tobacco, cannabis
    Apr 01 4:38 PM | Link | Comment!
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