Marketplace Roundtable: Marijuana Money

Marketplace Roundtable Marijuana Money
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Debra Borchardt launches our first cannabis-focused service on the Marketplace, and she checks in on the fast-moving space.

She explains how to get one’s bearings in an industry that is still in its infancy and what the major trends are to watch.

The power of branding and the willing to experiment are both strong themes to consider for interested investors.

The cannabis industry is both an exciting space for some investors and a murky one for many. While it is in the early stage of a potential ‘green rush’, cannabis also faces an ever-changing regulatory climate, self-inflicted wounds from shadier operators, and the need to still see a cultural shift to fuller acceptance for the industry to thrive. In other words, it’s a good field in which to have a guide.

Debra Borchardt is a veteran of both the financial world and the journalistic world, with 15 years at Bears Stearns and eight at TheStreet (NASDAQ:TST). She launches Marijuana Money, her new Marketplace service, today. Marijuana Money is a weekly newsletter curating the key financial stories in the cannabis industry for that week, as well as notes from interviews with some of the major players in the cannabis industry, alerts on key events affecting the cannabis industry, reports from the field, and more.

She joins today’s Roundtable to explain how she navigates the sector and where she sees the biggest opportunities and potential pitfalls.

Seeking Alpha: From the perspective of a general investor, the cannabis industry still feels a little like the Wild West. Has the industry approached maturity in your view, or where are we in the industry’s life cycle?

Debra Borchardt, author of Marijuana Money: The industry is still in its infancy. There are some states in which the market is beginning to hit a certain level of maturity. Colorado and Washington especially are seeing businesses change hands, consolidation, and expansion. Those states are also making adjustments to their laws after learning what is working and what isn’t. We are still in the first inning of this game. California’s adult use program still isn’t live, and it is expected to be the largest in the country. Nevada is close, and Massachusetts is looking like 2018. However, the two big states of Texas and New York are far from legalizing, and they will greatly impact this industry.