CANNAINVESTOR Magazine October / November 2016 - Page 32

Much like how the term Ecoforming is used to describe what once took paragraphs, there is a much easier way to remember what to look for when carrying out your due diligence: Invest in companies:

⦁with a successful product/service with growing demand;

⦁that posses the ability to supply that growing demand

⦁that are run by “smart” people with proven experience;

⦁that invests money on getting better and not just on getting bigger;

⦁with financial health (past, present, and forecasted);

⦁that do not overpay for expansion and materials;

⦁that operate in a jurisdiction that should facilitate growth - not impede it.

⦁that are undervalued

The successful Retail Investor avoids overpaying for shares in a company and seeks out value priced companies and that same approach needs to be taken when analyzing companies as companies that spend their money intelligently transfer that to their financial health and ultimately to their share price.