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To: ExxonPatrolUs

Unfortunately, their business empire will probably implode when MJ becomes fully legalized, which will probably be in a few years.

The illegal or semi-legal status of the product supports artificially high prices and profit margins. When it becomes just another agricultural product and supply explodes, prices and margins will drop like a rock.

There will always be niche high margin markets for super high quality stuff, just as for booze and cigars, but the volume in these markets will always be small.

Unless of course the feds or states impose truly extortionate taxes, in which case there will continue to be high-profit low-volume black markets in untaxed stuff.


6 posted on 02/17/2013 12:32:04 AM PST by Sherman Logan
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To: Sherman Logan
Medical marijuana is doing a booming business. For example, CA collects around $100M/yr in revenues from $1B in sales. People can grow their own, but most choose not to. Instead, they pay $300/ounce and up at dispensaries.

The same market forces are at work for both medical mj and recreational mj.

7 posted on 02/17/2013 1:06:47 AM PST by Ken H
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