Investing in High Times: The Most Trusted Brand in Cannabis
How to Invest in Sin and Happiness
It was a treasure trove of sin and happiness.
A lone oak tree that rested peacefully in the middle of an open field that separated two neighborhoods.
A circular path surrounding the sturdy trunk had developed over the years, where local kids had set up empty milk crates that served as chairs and tables. Next to the tree sat a busted up wooden box where, every few weeks or so, a new issue of Playboy, Hustler, or High Times would appear.
We would spend hours by that tree, sneaking peaks of partially torn centerfolds, bragging about all the things high school boys brag about, and smoking what I would consider today to be some of the worst weed ever grown.
But at the time, I didn’t know any better. In fact, some of my fondest memories are of discovering the latest issue of High Times in that old box and sharing a dime bag with a friend or two. To us, High Times was the coolest magazine ever — a real-life magazine that featured articles about grow lights, how to roll the perfect joint, and how to find the best lawyers that can help you if you get busted.
I’m not going to lie. There will always be a special place in my heart for High Times. And that’s why I’m writing this article today.
High Times Is Going Public
Over the past few years, we’ve seen a number of cannabis-based publications and media portals go live.
Thanks to the rapid development of the legal cannabis market, this is a trend that is unlikely to peter out anytime soon. In fact, I’m always being hit up by new media startups that are looking to launch new cannabis-centric media portals. But the reality is few will ever succeed.
Media is a tough business, and it's even tougher for outlets that focus on cannabis. That’s not to say they can’t succeed. Certainly we’ve seen companies like Herb and PROHBTD become quite successful, not only in building respected brands but also in having little trouble raising millions in financing.
So when I heard last year that High Times would be going public, I got excited. After all, not only was High Times an important part of my youth, but it’s also an established brand with a long history of being a trusted source for cannabis enthusiasts and legalization advocates.
That being said, I also realized that over the years, High Times had begun to lose some of its swagger. A number of management changes and, quite frankly, a certain level of complacency seemed to have sidetracked the brand at the worst possible time.
As a longtime reader of High Times, I was saddened by this. And as an investor, I was frustrated. But this sadness and frustration may soon transform into joy and triumph.
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Owning a Piece of High Times
People often ask me what my secret is to picking so many winners.
This question has come up more and more lately as our early recommendations on companies such Canopy Growth Corporation, Aphria, Inc., and OrganiGram Holdings have led us to quadruple-digit gains. In fact, those who took my advice to buy Canopy Growth Corporation for $1.60 a share are now sitting on gains in excess of 2,200%.
Now, while I do have a few tricks up my sleeve, the reality is the biggest indicator of success is always determined by the quality of management.
I don’t care how incredible the company may seem; if the person steering the ship is incompetent, the ship will sink.
So I’ve been very pleased over the past few months to see how the current management lineup at High Times has been successful in getting this iconic brand back on track.
Since CEO Adam Levin has taken the reins, High Times’ website has seen a 425% increase in monthly digital impressions, and revenues have increased by 20%. The company has also been successful over the past couple of months increasing its social media exposure.
As reported by cannabis analyst Javier Hasse, in an effort to significantly increase revenue, the company is now working on:
Monetizing the brand’s most popular articles by selling related products
Exploring other verticals outside the magazine’s classic “stoner culture” approach, getting into medical cannabis and CBD topics, developing a women’s portal, etc.
Building a new site that would serve as a sort of “Amazon of Cannabis”
Turning High Times Holding Corp. into an umbrella for other cannabis-related companies, thereby allowing multiple cannabis companies to trade publicly under one name and leveraging a larger market cap
Of course, these are lofty goals, and they won’t come cheap. So the company is now raising capital through an equity crowdfunding portal that allows any investor the opportunity to buy shares of High Times before it lists its shares on a public exchange.
With this crowdfunding model, you essentially have the opportunity to buy shares of High Times right now without going through your broker. Here’s a link if you want to check it out.
If the eventual listing of High Times proves successful, those who took part in this early crowdfunding campaign could certainly come out ahead.
And while there are, of course, no guarantees in life, you have to admit that the idea of being a shareholder of High Times is pretty damn cool. Especially now that it seems like management finally has a handle on the brand and has the ability to make it very profitable as we get closer and closer to the end of federal prohibition.
To a new way of life and a new generation of wealth...
@JeffSiegel on Twitter
Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.
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