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If you flip something you make a profit out of it. Let's say you bought a 5-stick pack of gum for 25 cents and you sell every stick for 10 cents (giving you 50 cents) you just flipped the pack of gum. I heard there was a show where people flip houses. They buy some houses, fix them up then sell them for more than they paid. So I guess you could flip anything, but when I hear someone say they flipped something I'm usually thinking about narcotics. In the example, "pound" is probably a pound of chronic, cocaine, etc..
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