Sunday, March 16, 2014

Marijuana Stock Index Up 390%: Jim Cramer and Marijuana

I have been a follower of the tweets of Jim Cramer on Twitter for quite a while and I noticed something interesting on Friday. I was surprised to see that he posted several links to articles on marijuana, including Cannabis Companies Get Series B Financing and Marijuana Job Fair Overwhelmed with Long Lines. Like it or not, the news on medical marijuana and legalized marijuana continues to grow (no pun intended).

Marijuana Stock Index Up 390% in Two Months

And no wonder. The Stockerblog.com Marijuana Stock Index, which can be found at WallStreetNewsNetwork.com, shows that marijuana stocks shot up by an incredible 390% for the first two months of the year, versus the S&P 500 which wasn't up even 1% over the same period of time.


The Stock that Rose 1108%

Some stocks dropped during the month of February, but were still up significantly from the beginning of the year.  For example, FusionPharm Inc.    (FSPM), dropped about a dollar a share from the end of January to the end of February. Yet, from the end of December, the stock went up by an amazing 1,108%. The is the company that makes and markets cultivation containers.

The Stock that Rose 416%

Yet, other marijuana stocks continued to make new highs (another unintended pun) through both months. CannaVEST    (CANV) went from 28.50 a share at year end to over 147 a share at the end of February, an increase of 416%. CannaVEST in involved in the production and marketing of hemp based nutriceuticals.


The Stock that Rose 1367%

The biggest high riser (pun was intended that time) during that two month period was Cannabis Sativa Inc.    (CBDS), which has a purchase agreement for a patent pending hybrid marijuana strain. The stock went from being a penny stock at 75 cents a share to 11 a share. This was an unbelievable increase of 1,367%.

Blue Chip Marijuana Stocks

Even the Blue Chip Marijuana Stocks outperformed the S&P 500, such as Psychmedics (PMD), Solvay (SVYZY), and  Valeant (VRX).

The Future and
Which Marijuana Stocks to Invest In

So will some of these marijuana stocks crash and burn? I'm sure a few will, but it is hard to tell which ones.  Will some continue to get higher? Definitely. So how do you pick the right ones?

My opinion is to use the Gold Rush Analogy. During the California gold rush, the businesses that made the most money were the ones that sold supplies and clothing (i.e. Levis) to the gold miners. I'm sure you can extend this analogy to marijuana companies, which you can find a list of at WallStreetnewsNetwork.com.

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

By Stockerblog.com


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