This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Marijuana Rationing Begins in Colorado, Big Demand in Spite of High Prices

By Hal M. Bundrick

NEW YORK (MainStreet) High prices have not diminished demand for recreational marijuana in Colorado, with some shops already sold out of their initial inventory. Grass rationing has begun, as retailers begin imposing additional restrictions on sales, well below the caps required by state law.

The Denver Post reports as many as 100,000 people purchased pot in the first week of legal sales in Colorado, totaling an estimated $5 million in revenues.

"None of us could really prepare for what was going to hit us," Nick Brown, owner of High Country Healing in Silverthorne told the Post. "I think we all thought we would see huge demand and lines. But I don't think any of us expected what was happened over the last six days."

Prices for an eighth of an ounce have reportedly topped $45, nearly double the $25 medicinal customers have been paying.

Meanwhile, the U.S. Department of Justice (DOJ) is preparing to issue new guidelines to financial institutions regarding the flow of funds from marijuana sales. Federal law current forbids banks from accepting deposits from known drug dealers as a violation of money-laundering regulations. The revised DOJ guidance is expected to clarify the responsibilities of Colorado financial institutions.

In a memorandum issued in August, the DOJ emphasized its commitment to enforce the Controlled Substances Act (CSA) in spite of growing state legalization for the possession of small amounts of marijuana. The Department listed enforcement priorities that included:

  • Distribution to minors
  • Revenue flowing to known criminal enterprises, gangs and cartels
  • Transport of the substance to states where the sale of marijuana remains illegal
  • Preventing the legal sale of pot from being used as a cover for illegal drug trafficking
  • Preventing violence in the cultivation and distribution of marijuana
  • Preventing drugged driving
  • Preventing the growth of marijuana on public lands
  • Preventing possession or use on federal property.

"Outside of these enforcement priorities, however, the federal government has traditionally relied on state and local authorities to address marijuana activity through enforcement of their own narcotics laws," the DOJ statement noted. "This guidance continues that policy."

--Written by Hal M. Bundrick for MainStreet

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs