Talking stocks, trading, and investing in general

[imatlas]

I was only kidding, but now that I think about it, a pot-growhouse REIT actually makes a lot of sense.

Not unlike Terradata or Rackspace: provide a turnkey solution for growers with power, fire suppression, security, etc. and each grower gets their own cage or room.

 

[brokencycle]

I was only kidding, but now that I think about it, a pot-growhouse REIT actually makes a lot of sense.

Not unlike Terradata or Rackspace: provide a turnkey solution for growers with power, fire suppression, security, etc. and each grower gets their own cage or room.

Grow House as a Service

There is land for sale on the Vegas strip. I want to build a pot casino hotel, but my guess is marijuana decreases gambling unlike alcohol. Plus you probably don't want your gamblers getting paranoid.

 

[imatlas]

GaaS! Yes!

Plus it's technically illegal to consume anywhere in Vegas except private residences.

 

[imatlas]

Not surprised that someone has had this idea already:

https://www.420property.com/listings/real-estate-420-property-listings/

 

[brokencycle]

GaaS! Yes!

Plus it's technically illegal to consume anywhere in Vegas except private residences.

My thinking was to build the casino make the hotel rooms condos instead then just air BNB them. If you really wanted to, you could probably get around the regulation. The consumption in the casino is the tough part, but you could probably make big bucks on hotel rooms if you could allow it. Plus think of the room service revenue. $20 for a bag of Cheetos.

 

[otc]

If full legalization is achieved, are growhouses still going to be necessary?

If it started to be treated like any other cash crop, wouldn't we just have farmers tending it in open fields where conditions are ideal? Right now the growers are pretty limited in the places they can cultivate (both from a legal and a safety/security perspective).

Even today, there are commercial grows out there using open land or simple greenhouses. Climate controlled warehouses with energy-sucking grow lamps seem excessive.

 

[idfnl]

If full legalization is achieved, are growhouses still going to be necessary?

If it started to be treated like any other cash crop, wouldn't we just have farmers tending it in open fields where conditions are ideal? Right now the growers are pretty limited in the places they can cultivate (both from a legal and a safety/security perspective).

Even today, there are commercial grows out there using open land or simple greenhouses. Climate controlled warehouses with energy-sucking grow lamps seem excessive.

The higher grade stuff will always require controlled conditions, plus a storm or freeze can ruin a valuable crop.

 

[otc]

A greenhouse is probably sufficient control for anyone producing on a scale where something like a grow ETF would even make sense. Greenhouses are cheap to build on site...not something that would be rented and dealt with like warehouse space.

If farmers can just plant whole fields of the stuff in regions with ideal growing conditions, prices are going to come down and issues like freak storms or freezes are going to not matter for all but some specialty growers.

Just doesn't seem like a big enough "thing" for having dedicated investment vehicles focused on just that small aspect of the production chain.

 

[imatlas]

Outside vs inside are very different when it comes to the end product and the prices charged. I can definitely imagine a market for turnkey facilities to rent, but whether its a multi billion market that would support numerous players is a very different question.

In some jurisdictions they won't permit outdoor grows regardless. If the need is driving up warehouse rents in states that have legalized (and anecdotally, it is), then it's clearly having an impact on that market. It'll be another decade at least before it's possible to ship across state lines, so it's going to have different effects in each region.

 

[brokencycle]

I can see this GaaS being working for microgrowers. I can imagine it going something like this:

1. Legalize
2. Large players like Phillip Morris start mass producing it in a very controlled and standardized way.
3. People start creating unique strains and selling at a premium.

Much like the beer market today.

 

[imatlas]

Exactly. PaaS and data center vendors don't sell to the Amazon; they sell to small to medium sized businesses that don't want the capital headache of building out a data center of their own.

There will definitely be a niche for supporting boutique growers. Hell, there already is.

 

[idfnl]

"3. People start creating unique strains and selling at a premium."

This happened 35 years ago, what are you talking about?

This space is getting into spaceship territory. How far do you want to take this plant? In the 60's guys would ask each other if they felt anything, 20 years on you had "kind bud", and then quickly all the Dutch strains started to dominate and it went from strong **** to half a hit is a moon dance. Now weed sends people to mars, and strength is now a detriment.

For equivalency, it's like talking about microbrews that are 120 proof, putting weed on steroids doesn't do much to clear a path for legalization.

 

[brokencycle]

"3. People start creating unique strains and selling at a premium."

This happened 35 years ago, what are you talking about?

This space is getting into spaceship territory. How far do you want to take this plant? In the 60's guys would ask each other if they felt anything, 20 years on you had "kind bud", and then quickly all the Dutch strains started to dominate and it went from strong **** to half a hit is enough. You're starting to see weed send people to mars, the strength is now a detriment.

For equivalency, it's like talking about microbrews that are 120 proof. You can't sustain this.

I'm no expert in marijuana (never have consumed it), but I imagine there are other things people might grow for other than potency. To continue the example, microbrewers aren't increasing ABV. They're doing unique flavors.

 

[idfnl]

I'm no expert in marijuana (never have consumed it), but I imagine there are other things people might grow for other than potency. To continue the example, microbrewers aren't increasing ABV. They're doing unique flavors.

It's a different crowd. They value bragging about strength over drinking flavor, and the type of high you get. I suspect this dynamic is probably because it's illegal.

 

[TMacpherson]

I don't know if this appropriate (moderators feel free to delete) but I just published my book "Seeking Wisdom: Thoughts on Value Investing". It's available on Amazon in Kindle and paperback. Happy to answer any questions that people may have about it.