5 Things Every Psychedelic Retail Investor Can Learn From The Cannabis Industry
This article was originally published on Microdose Psychedelic Insights and appears here with permission.
Investor interest in the emerging psychedelic medicine sector is on the rise, attracting significant attention from billionaire investors, high profile celebrities, and dynamic entrepreneurs. As groundbreaking clinical research continues to bolster the momentum of the psychedelic industry, many are drawing important lessons from the “green rush” experienced by cannabis investors. Indeed, there are some critical cannabis takeaways that current psychedelic investors can benefit from reviewing. This guide will explore five things every psychedelic retail investor can learn from the cannabis industry.
Lesson #1: Pay Attention to Executive Selling
Many cannabis investors were not aware that executive insiders are required to disclose when they were buying or selling their shares. There have been numerous points in the cannabis industry where heavy selling by an executive signaled the top and the beginning of a steady decline. Brendan Kennedy, CEO at Tilray, famously dumped $11 million in stock and was called out about it on TV (the stock, which was at $74.21 when Kennedy sold his shares, is now at $6). Additionally, Canopy’s executive team mass dumped in September 2018–one of the bubble’s final peaks. If you are a psych investor and know that revenues are a long way off, watch for executive dumping.
Lesson #2: Tracking Promises and Projections
While actual revenues are a long way off for many psychedelic companies, that does not mean you can’t use other measures to determine a company’s success today. Plus, you don’t even need to be a finance expert or have a background in reading complicated financials to do this. A simple way to hold companies accountable that have long paths to profitability is to track the promises and projections they make and see how well it matches up with …