A company wrote an article saying that banks should work with cannabis businesses because it is a good way to make money, but many banks are scared or confused about doing so. Read from source...
- The author seems to have a strong bias towards the cannabis industry and its potential for banks. He uses phrases like "lucrative opportunity" and "impedes the growth and stability" to convey his positive outlook on the sector. This may influence the reader's perception of the issue and make them more inclined to agree with his point of view.
- The author does not provide any concrete evidence or data to support his claims about the revenue potential for banks that engage with cannabis businesses. He only mentions that some specialized entities are filling the void, but does not explain how or why they are more successful than traditional banks. This makes his argument weaker and less convincing.
- The author acknowledges the legal and regulatory complexities of the cannabis industry, but does not offer any solutions or suggestions on how to overcome them. He simply states that these are the reasons for banks' reluctance, without addressing the possible implications or risks involved in engaging with this sector. This leaves the reader with a sense of uncertainty and doubt about the feasibility of his proposal.
- The author does not consider any counterarguments or alternative perspectives on the issue. He only presents his own opinion and expects the reader to accept it without questioning. This makes his article less balanced and objective, and more subjective and persuasive.
Given that the article is about the potential benefits of banks partnering with specialized lenders to serve the cannabis industry, I would recommend the following actions for an investor interested in this sector:
1. Research the current and projected growth of the legal cannabis market in different states and countries, as well as the regulatory environment that affects it. This will help you identify the most promising regions and segments for investment, as well as the main challenges and risks involved. Some sources of information include:
- The Arcview Market Research, which provides data and analysis on the legal cannabis market worldwide.
- Leafly, a platform that tracks consumer trends and preferences in the cannabis industry.
- Marijuana Business Daily, a news outlet that covers the latest developments and opportunities in the sector.
2. Identify the leading specialized lenders and financial services providers that cater to the cannabis industry, such as Terra Tech Corp (TRTC), CannaRoyalty Corp (CNNF), and Acreage Holdings (ACRGF). These companies are likely to benefit from the growing demand for financing and banking solutions in the sector, as well as the potential partnerships with banks that may arise. You can find more information about these companies on their websites, SEC filings, and financial reports.
3. Evaluate the risks associated with investing in this sector, such as the legal and regulatory uncertainties, the competition from black market operators, the volatility of prices and demand, and the potential impact of changes in taxation and regulation on the profitability of the businesses. Some ways to mitigate these risks include:
- Diversifying your portfolio across different states, countries, and segments of the cannabis industry, as well as across different types of assets, such as stocks, bonds, and real estate.
- Monitoring the political and legal landscape closely, and adjusting your investment strategy accordingly, based on the developments and changes that may affect the sector.
- Seeking professional advice from a financial advisor or an attorney who specializes in this area, and following their recommendations and guidance.