The marijuana business is booming. In today’s green rush there are lots of people getting rich from selling picks and axes. But the closer you get to selling the plant itself the further away companies get to legitimate banking. That means the bulk of marijuana plant sales is happening via cash transactions. And Mad Money’s Jim Cramer is urging savvy stoners to take advantage of this little fact.
Because marijuana is currently a cash business places that sell it have a lot of cash on hand especially as legalization continues to trend. This could give a boost to Brinks Co (BCO)±the largest cash management company in the world, Cramer says.
“Brink’s isn’t really involved in the pot industry per se, but because none of these new dispensaries can open bank accounts thanks to federal law, they’re all hiring tons of armored cars to protect their money. Like it or not, marijuana is a cash business,” the “Mad Money” host recently told MSNBC.
Cramer goes on to say, ”Even if Brink’s isn’t trying to capture the marijuana market share directly, there are only so many armored trucks in this country, and when demand for them surges from one particular industry, you better believe that’s going to help with pricing across the board. This is a pot play,” says the money maven. “Brink’s has worked a remarkable transformation, and despite all the hand-wringing about the death of king cash, this stock seems to have a lot more room to run, especially as states legalize pot.”
Investing may feel risky knowing how marijuana stocks have performed in the past six months. But, keep in mind many different companies are flooding the marijuana market right now. Breath analyzers, CBD medicines, cultivation equipment, vaporizers and consulting services. The market can’t help but be up and down at this point.
Brinks is currently providing a service all the above markets within the marijuana industry will need to survive and flourish. Food for thought as you roll your next doober or hit your next dab. Maybe we can all cash in on this temporary cash only business.