This should come as no surprise. A topic is in the news and scammers figure out a way to make a profit, sometimes faster than the actual industry that is the subject of the scam. In this case, FINRA is concerned about scammers touting marijuana stocks, as in investments not inventory. Or maybe inventory, who knows?
In the Investor Alert, FINRA warns about the importance of spotting a potential scam and being circumspect when approached.
Perhaps the humor is only noticed by me, but FINRA warned of one company that was being touted as a wonderful investment. “Yet the company’s balance sheet showed only losses, and the company stated elsewhere that it was only beginning to formulate a business plan.” FINRA says in the Alert. Am I the only one who is not surprised that a marijuana grower has not gotten around to formulating a business plan? Maybe once the grower satisfies its insatiable appetite for Doritos, they’ll get around to it.
Please, people, if it is too good to be true, just walk away or hang up. Unless you’re me and you get cold-called. Then get the name of the broker and the firm, then hang up. Then write a blog post about the broker. But I digress.
That’s the sober view of one Lawyer from Jupiter, Palm Beach County, Florida. I’m Marc Dobin.