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Marijuana stocks have risen sharply higher after the passage of key voter initiatives in several states throughout the U.S. By our measure, marijuana stocks have risen more than 800% over the past six months alone, compared to just about 8% for the S&P 500. In this article, we’ll take a look at the drivers of this growth and investment opportunities in the sector. To syndicate this article, or for more information, please contact us online or call (406) 862-5400 .
Index includes: GrowLife Inc. (OTCQB: PHOT), Medical Marijuana Inc. (PINK: MJNA), Cannabis Science Inc. (OTCQB: CBIS), HEMP Inc. (PINK: HEMP), and Medbox Inc. (PINK: MDBX). New Legislation Drives Growth Publicly traded marijuana companies first began seeing growth in October 2012, when several voter initiatives were revealed on a state level to legalize marijuana. While the majority of them were focused on medical marijuana, which has already gained a lot of mainstream support, two of them went a step further and focused on the legalization of recreational marijuana. In November of 2012, voters in Washington and Colorado voted to legalize marijuana for recreational use, while Massachusetts and Connecticut voters approved referendums legalizing medical marijuana. Illinois, New York and Ohio also have pending legislation to legalize medical marijuana in their states, and as of December 2012, 18 states and the District of Columbia have legalized use. That accounts for over 100 million citizens of this country living in states that have voted to directly contradict the antiquated federal law and classification of marijuana as a schedule one drug. This majority passage of voter approved medical marijuana laws in 18 states and recreational marijuana in two states has sent a strong signal to Washington DC that changes need to be made to federal law. If that happens, publicly traded companies already active in the space could see significant upside from an industry projected to hit $9 billion in sales by 2017 even without full legalization. Investing in the Marijuana Industry There are many different ways for investors to put capital to work in the burgeoning marijuana industry, from large cap stocks like Altria Group Inc. (NYSE: MO) to a variety of micro cap stocks offering more direct exposure. With our marijuana index above, we’ve focused largely on these smaller companies operating in the space with the most direct exposure. Many of the smaller players, like Medical Marijuana Inc. (PINK: MJNA) and Cannabis Science Inc. (OTCQB: CBIS), are focused on the medical marijuana niche, while others like HEMP Inc. (PINK: HEMP) are focused on everything from marijuana merchandise to reward cards. But, these companies tend to be volatile and illiquid at times due to their high exposure and with the exception of Cannabis Sciences, these companies do not file or report any financial figures to the SEC. The best opportunities in the industry may instead be those focused on the industry’s core technologies, with diversified operations that go beyond the marijuana industry. Investors in these companies may have a safety net in the form of existing sales to different end markets GrowLife Offers Unique Opportunity GrowLife Inc. (OTCQB: PHOT) is a unique opportunity for investment since they are already poised to capture a fair share of the growing equipment market. GrowLife offers up a wide variety of the best hydroponic equipment for sale on the market today; with their Stealth Grow, SG sensors, and Phototron divisions they are able to cater to everyone from professionals to first time growers. This wide product line combined with the already established distribution network makes GrowLife a seemingly much safer investment. Led by greners.com (a highly profitable online superstore), 2 separate brick and mortar stores for those looking for a more personable experience, and backed by award winning technology that has been recognized with a six-page spread in the November High Times magazine issue, it is apparent that GrowLife’s operational core has been hard at work for a long time already. From Sterling Scott, CEO of GrowLife, “From the very beginning, GrowLife has focused on providing its customers and shareholders with safe and highly effective products that not only provide great results in the garden but also an extremely sound investment to their portfolios. We are a fully reporting, safe, conscious and completely legal option within the marijuana industry, and offer a level of stability that many others cannot.” During the third quarter, the company reported revenues that increased 121% thanks to its acquisition of SG Sensors and increasing sales of its existing products. As an example, the SG sensors product line has become so popular that there is now a waiting list to purchase. Meanwhile, the firm’s balance sheet expanded to include new assets and total stockholders’ equity of $163,029, which is an improvement over last year’s $379,262 deficit.
http://theotcinvestor.com/where-to-invest-in-the-growing-pot-industry-1698/
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I have almost doubled my investment in MJNA. I wish I wasn't a poor college student so that I could invest more. I also think TRTC, PHOT, and MWIP look good. HEMP and CBIS also look like a buy considering their low prices and possible growth factors.
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