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Saturday, November 10, 2012

Marijuana Stocks Get High After the Election

On November 6, voters in Colorado and Washington approved legislation that allows for the recreational use of marijuana, and Massachusetts legalized marijuana for medicinal use. Investors responded by causing the prices of several micro cap stocks connected to the cannabis and medical marijuana industry to get high. Some of the stocks that were smoking, just on Friday alone, were Cannabis Science, Inc. (CBIS) up 29%, Converted Organics Inc. (COIN) up 23%, Cynapsus Therapeutics Inc. (CTH.V) up 11%, GreenGro Technologies, Inc. (GRNH) up 183%, Hemp, Inc. (HEMP) up 9%, Medbox, Inc. (MDBX) up 23%, Rapid Fire Marketing, Inc. (RFMK) up 17%, and Tranzbyte Corporation (ERBB) up 31%.

Most of the companies related to marijuana are very low cap stocks, according to the free list of over 20 marijuana stocks at WallStreetNewsNetwork.com. However, for the medical use of marijuana and its derivatives, there are larger companies that produce such products as Marinol, a trademark of Solvay SA (SVYSF) and Nabilone, marketed as Cesamet by Valeant Pharmaceuticals International (VRX), which trades on the New York Stock Exchange. Nabilone, a synthetic cannabinoid, is used to treat chemotherapy-induced nausea and vomiting, anorexia, and weight loss in AIDS patients.

Valeant also markets Fluorouracil, a cancer treatment drug, and Diastat, a seizure drug. This $16.4 billion market cap stock trades at 613 times earnings, and five times sales.

Psychemedics Corporation (PMD) has a PE ratio of 19.15, a price sales ratio of 2.41, and pays a generous yield of 5.2%. This $60.47 million market cap company is a provider of marijuana testing and other drug testing services.

GW Pharmaceuticals (GWPRF) produces Sativex, an oral spray with tetrahydrocannabinol and cannabidiol, which is used to treat multiple sclerosis patients, and also for treating pain in cancer patients. This $121 million company trades at 3.5 times sales.

To see the complete free list of over twenty marijuana stocks, which shows the stock ticker symbol, PE ratio, price sales ratio, yield, market capitalization, and business description, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above stocks at the time the article was written.


By Stockerblog.com

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