Investors look to hemp stocks for high profits

Special Reports

NASHVILLE, Tenn. (WKRN) — As hemp and CBD rise in popularity comes an opportunity to yield high profits.

“This industry is new and unproven, in a lot of ways, a lot of risk built into this, so if you do your research and check every hour, there is a lot of money to be made in these stocks,” said Marc Adesso, local Nashville attorney at Waller Lansdon Dortch and Davis, LLP.

In 2014, Adesso helped the first cannabis company, General Cannabis Corp, go public on the New York Stock Exchange.

He said CBD companies are on the national markets, but hemp-only companies are not.

But that doesn’t mean you can’t invest in hemp.

There are a few hundred hemp companies currently traded on the Over The Counter, or OTC Market, an alternative trading system for smaller companies.

The difference between the OTC and the national markets — not as much oversight by the U.S. Securities and Exchange Commission.

“There’s not really a way for a retail person to just go and buy share off the public market without a broker,” said Adesso. “So you have to open a brokerage account to buy these shares.”

But Adesso predicts with the growing interest in the crop and the crop now federally legal, hemp companies will soon make big changes.

“I think that you’ll see, they probably already are talking to the New York Stock Exchange and Nasdaq and that you’ll see them listed on the normal, national exchanges probably this year,” said Adesso. “And then you’ll be able to buy them through your general Schwab account.”

Until then, the hemp market’s highs are matched by the lows comparable to Nashville’s ever-changing skyline.

Stocks ranging from fractions of a penny to whole dollars.

The volatility is luring a growing number of investors.

Adesso said big investors in Middle Tennessee who normally wouldn’t invest in the OTC market are wanting to ride the wave.

“They’re moving into these things,” he said. “They’re opening those accounts because they want to play in the cannabis industry because of the tremendous upside potential that these companies represent.”

Some clients are already seeing rewards.

“We saw a considerable double-digit percentage bump after the Farm Bill was passed,” said Adesso.

For those wanting to invest, Adesso recommends working with a lawyer to make sure you’re in compliance with state and federal hemp laws, narrow your search to five hemp companies, research those companies to then make your selections.

All day Thursday, Linda Ong has special reports in every newscast investigating Tennessee’s Hemp Surge.

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Don't Miss

Trending Stories