Pot Stocks Crash First Half of the Year: Time for a Turnaround in the Cannabis Industry?

During the last day or so, the stocks in the medical marijuana and recreational marijuana industry have moved up a bit. However, that move isn't anywhere near enough to make up for the losses in the stocks since the beginning of the year.

The Stockerblog.com Marijuana Stock index dropped 11% for the latest quarter versus the S&P 500, which was up 5% over the same time frame, according to the Marijuana Stock Index list at WallStreetNewsNetwork.com. If you look at the returns from the beginning of the year, the returns are even worth, the the Marijuana Index down 32% with the S&P jumping 11%.

Sixteen of the twenty one stocks in the index were down. For example, Medbox (MDBX) tanked 51% since the beginning of the year, CannaVEST (CANV) is down 80%, and Medical Marijuana (MJNA) is down 46%.

One of the few successes is mCig (MCIG) which was up 52%. The company is in the business of electronic vaporizing cigarettes.

Will these stocks recover and reach the heights they had back in January and February? Maybe, maybe not. It will be interesting to see who the survivors are. In addition to the Marijuana Stock Index list at WSNN.com, there is also the Large List of Marijuana Stocks.

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

 By Stockerblog.com

Marijuana Stocks Crash in April

If you have been following the Stockerblog.com Marijuana Stock Index, which can be found at WallStreetNewsNetwork.com, over the last few months, you would notice that the pot stocks increased substantially during the first couple months of the year. However, during the month of March, the cannabis companies started to drop off, and in April, they really tanked.

According to the Marijuana Index, a dozen of the 21 stocks in the index dropped in excess of 30% over the last couple months, with several dropping by over 50%. For example, Advanced Cannabis Solutions (CANN) dropped by 53%, Cannabis Science Inc. (CBIS) dropped by a similar amount, and CannaVEST (CANV) fell by 87%.

The overall Marijuana Stock Index tanked by 43% during the last two months, whereas the S&P 500 was up by 1%. Interestingly, the Marijuana Stock Index is still outperforming the S&P 500 from the beginning of the year, with the Marijuana Index up 17% and the S&P up just 2%. Some of the stock are still up substantially from the beginning of the year in spite of the March and April drop, with more than ten rising over 100%.

To see the free list of all 21 stocks in the entire Stockerblog.com Marijuana Stock Index, go to WallStreetNewsNetwork.com. Also available is the Big List of marijuana stocks, which has over 100 cannabis stocks.

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

By Stockerblog.com

WallStreetNewsNetwork Marijuana Stock Index Up 40% for 1st Quarter

Marijuana stocks are still getting high. The WallStreetNewsNetwork.com Marijuana Stock Index was up a respectable 40% for the first quarter of this year, significantly outperforming the S & P 500, which was up only about 1.3% for this quarter. 

 
This is in spite of the fact that some cannabis companies experienced a huge drop this month. Interestingly, these were the higher priced stocks. For example, Advanced Cannabis Solutions    (CANN) dropped from 33.15 to 29.99, Cannabis Sativa Inc.   (CBDS) dropped from 11 to 7.85, and one of the biggest drops, CannaVEST (CANV) tanked from 147 to 38 per share.

There were some risers this month, such as mCig    (MCIG), which went from 0.46 a share to 0.74, and Terra Tech    (TRTC), which rose from 0.52 to 1.14.

Overall, most of the pot stocks were down for the month of March, but up for the quarter. If you look at the chart, you will notice that the weed stocks appear to have topped out, or at least taking a rest. 

For a list of the stocks in the WallStreetNewsNetwork.com Marijuana Stock Index or the BIG LIST of marijuana stocks, which now has over a 100 listings, go to WallStreetNewsNetwork.com.  

Disclosure: Author owns TRTC.

By Stockerblog.com

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

The Growth of the Medical Marijuana Industry and the Stocks that Participate

In November of 2012, the United States began the next revolution in American history. But this isn’t the railroad boom of the industrial revolution, or the booming importance of the Internet in the technology revolution. Instead, states like Colorado and Washington passed laws in 2012 that will pave the way for the medical marijuana revolution and will change how the nation accepts cannabis culture. But along with users who enjoy the opportunity to use marijuana for personal use, there is also a huge opportunity for investment for those that are looking to make a large financial gain.

Tax Revenues

Aside from all of the medical marijuana users who enjoy using for personal reasons, governments have also gotten ‘high’ after seeing the amount of money the industry turns over. In 2012, Colorado estimates that it brought in nearly $200 million in tax revenues. For a nation that is struggling to remain atop of the world economies, this is an eye-opening number. For those that are looking to invest, these numbers are important to keep in mind due to the value that they have on the national economy. If something is so profitable and helps the country dig into its national debt, it will only rise in value as it becomes more acceptable throughout the rest of the country. This garners amazing investment opportunities for those looking to invest in the marijuana industry.

Jobs

Aside from the money, the medical marijuana industry provides jobs for people. The larger the system gets, the more people are needed to work in the process of growing, harvesting, distributing and selling marijuana. If the tax revenue wasn’t enough to peak the interest of the government (hint, it is), then seeing the unemployment rate drop and even further bolstering the economy is another added benefit to keep in mind with the legitimacy of cultivating marijuana. This is an added safety net of concern for those looking to invest in the medical cannabis arena.

Establishment Support

Lastly, marijuana is no longer looked at with such negativity and stigmatized opinions. Influential names across America like US Attorney General Eric Holder, who has proposed more leniency for drug offenders, CNN’s Dr. Sanjay Gupta support of medical marijuana legalization, and many more high-ranking officials have voiced their opinion on the financial and health benefits that medicinal marijuana provides. Even major health journals, such as Nutricula Magazine has espoused the legalization of marijuana for its health benefits.

Investment Opportunities

If you are an investor who is considering buying stocks in medical marijuana, consider that a lot is weighing in favor of the huge growth of the industry. Like anything, there is risk when investing. However with the financial, employment and health benefits that medicinal marijuana provides, the industry has already begun to catch enough momentum that it has captured the eyes of investors.
Most of the companies related to medical 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, which is synthesized THC, also known as dronabinol, and available by prescription in the US. This is a product of Solvay SA (SVYSF). However this is just a small part of this large chemical conglomerate.
Nabilone, marketed as Cesamet, is produced 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 $31.5 billion market cap stock trades at 7.87 times sales. Revenues for the latest quarter were up 33.6%, however, earnings were negative.

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 $137 million company trades at three times sales. Revenues were down 34% for the latest quarter.

Some of the companies in this industry have already made major moves. For example, Medbox, Inc. (MDBX), which makes machines that can dispense medication and medical marijuana to individuals based on biometric identification, has risen from about $2 a share a year ago to $35 a share today. Other microcap medical marijuana-related stocks that have recently started to move up are Cannabis Science Inc. (CBIS), Medical Marijuana Inc. (MJNA) which prints its stock certificates on hemp paper, CannaVEST Corp. (CANV), and Cynapsus Therapeutics Inc. (CTH.V). These are extremely low capitalization stocks that should be considered extremely speculative.

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



Disclosure: Author owns MJNA.

By Stockerblog.com