This Event Will Teach Businesspeople How to Buy Pot

2 minute read

There are many bits of stock-trading wisdom that, simply because they are both wise and obvious-sounding, have become clichés: “Buy low, sell high.” “Don’t catch a falling knife.” “Nobody ever went broke by taking profits.” The list goes on.

Now we might have a new one, thanks to the folks putting on an event for would-be investors in the newly emerging legal-pot business: “Be wary of marijuana companies that don’t exist.” So advises a press release touting the Marijuana Investment and Private Retreat.

“The average consumer hears all day long how the increasingly legalized cannabis industry is booming and a Mecca for aspiring marijuana business owners,” according to the release. “What they don’t hear, however, are ways ordinary citizens (e.g., non-millionaires) can also capitalize on this new industry by investing in marijuana stocks.”

Any seminar that had only the interests of “the average consumer” in mind would stop there and say, “Don’t invest in marijuana stocks at all unless you have a little cash that you’re totally OK with losing.” But that wouldn’t make for much of a retreat—it would be over before the mid-morning munchies set in.

To their credit, the event sponsors say they’ll “teach investors how to invest without falling for the many fraudulent stocks and scams that come with investing in a new industry,” and note that many pot stocks trade over the counter, and in some cases aren’t even backed by assets, much less revenue streams (that’s what they mean by companies that “don’t exist.”) Such stocks represent nothing more than ideas, if that. That includes nearly all pot stocks at the moment.

Keynote speaker Alan Brochstein, identified in the press release as a “certified cannabis financial analyst” and founder of 420 Investor, said: “Even those companies that file with the SEC have red flags that include complex capital structures, non-viable business plans, a lack of industry experience and leadership, and many other potential pitfalls.”

Other scheduled speakers are: Tripp Keber, founder of Dixie Elixirs; Wanda James, president of Cannabis Global Initiative; and Christie Lunsford, a consultant and a veteran in the marijuana business.

Go Inside the Harvest of Colorado's Most Controversial Marijuana Strain

Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Charlotte's Web grows on the Stanley brother's farm near Wray, Colo. on Sept. 22, 2014. The Stanley Brothers have developed a popular strain of cannabis that has been found to be helpful in reducing seizures in some children. Charlotte's Web is high in a compound called cannabidiol (CBD) and low in tetrahydrocannabinol (THC) the compound that causes a high. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Charlotte's Web grows on the Stanley brother's farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
From left: Zachary Sobol, Michael Atchley, and Jared Stanley walk to the farm to prepare for harvest of Charlotte's Web near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Rows of Charlotte's Web await harvest at the Stanley brother's farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Jared Stanley helps in the harvest of Charlotte's Web on the Stanley brother's farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Colin Sparks searches for seeds during the harvest of Charlotte's Web on the Stanley brother's Charlotte's Web farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Discarded leaves of Charlotte's Web at a farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Tim Knight helps in the harvest of Charlotte's Web on the Stanley brother's farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Rows of Charlotte's Web await travel to a drying facility after being harvested on a farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Zachary Sobol catches a ride on a trailer to the Stanley brother's farm during harvest of Charlotte's Web near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Rows of Charlotte's Web await travel to a drying facility after being harvested from a farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
One of the Stanley brother's greenhouses growing cannabis near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Zachary Sobol hangs rows of Charlotte's Web to dry after harvest in Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Penn Mattison, left, and Zachary Sobol, right, hang rows of Charlotte's Web to dry after being harvested from a farm near Wray, Colo. on Sept. 22, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
The Stanley brothers' new company laboratory in Boulder, Colo. on Sept. 23, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
A petri dish full of cannabis explants await transfer and transplanting at the Stanley brothers' lab in Boulder, Colo. on Sept. 23, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Molecular plant biologist and lab manager Bear Reel awaits the cooling of agar to help induce rooting of transplanted cannabis plants at the Stanley brothers' company laboratory in Boulder, Colo. on Sept. 23, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
The lab notebook of molecular plant biologist and lab manager Bear Reel at the Stanley brothers' company laboratory in Boulder, Colo. on Sept. 23, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
A flask of agar cools before explants of hemp are transplanted to help induce rooting and new growth at the Stanley brothers' company laboratory in in Boulder, Colo. on Sept. 23, 2014. Matt Nager for TIME
Charlotte's Web Stanley Brothers Pot Weed Marijuana Colorado California
Tissue cutter technician Meg Regan holds a vial of explants before sanitizing and transplanting at the Stanley brothers' laboratory in Boulder, Colo. on Sept. 23, 2014. Matt Nager for TIME

More Must-Reads from TIME

Contact us at letters@time.com