Many Marijuana Stocks Jumped 35% Today: Will They Continue to Get High or Go Up in Smoke?

If you thought that stocks in all the sectors seemed to be drifting downwards recently, you probably didn’t notice that the marijuana industry has been smoking.

For example, Cannabis Sativa (CBDS) jumped over 36% today. This is the company that Gary Johnson, the Libertarian presidential candidate, resigned from in January as CEO and Director, in order to run for president.

General Cannabis (CANN) rose by 31%, Cannabis Science (CBIS) went up by 29%, and Medical Marijuana (MJNA) went up by about 21%.

So what’s the reason for all this activity? The upcoming election. Marijuana legalization in some fashion is on the ballot in ten states, which is a record in terms of marijuana measures in one election.

The states that are involved are as follows:

Arizona
Arkansas
Arkansas
California
Florida
Maine
Massachusetts
Montana
Nevada
North Dakota

Some measure just involved medical marijuana, such as Arkansas and Florida. Other states have measures to legalize recreational marijuana, in addition to medical marijuana. Most investors are looking at Proposition 64 in the state of California, due to the size of the state’s population. Many investors believe that if California legalizes, then the cannabis stocks will take off.

Marijuana Stock Index

Look at the above chart of the Marijuana Stock Index. Back in late 2013, the pot stocks skyrocketed. Many investors in the medical arena became millionaires almost overnight, at least on paper.

The companies that make up this list are as follows:

Advanced Cannabis Solutions	CANN
Cannabis Sativa	CBDS
Cannabis Science	CBIS
GreenGro Technologies	GRNH
GrowLife Inc.	PHOT
Hemp Inc.	HEMP
mCig	MCIG
Medical Marijuana	MJNA
Agritek Holdings (MediSwipe)	AGTK
Pharmos Corp.	PARS
Planda Biotech	PLPL
Psychemedics	PMD
Solvay SA	SVYZY
Terra Tech	TRTC
Valeant Pharmaceuticals	VRX

One thing to keep in mind before investing in these stocks are that most of them are very low cap and extremely speculative.

If you are looking for a list of over 120 stocks that are connected to the marijuana industry in some way, go HERE.

It remains to be seen what will happen to these stocks, or what happens with the ballot measures, for that matter. Just remember, if you invest in a small cap stock, be prepared to lose it all.

Disclosure: Author owns CBDS, HEMP, and MJNA.

Marijuana Stocks on a High Streak

Marijuana Cannabis Joint

If you have been watching the news about Colorado and the sale of legal marijuana, you would have seen the long lines, reminiscent of lines for popular rock concerts or new Apple (AAPL) iPhones. This news has caused the the prices of many stocks in the cannabis and medical marijuana industry to get very high today. Some of the stocks that are smoking right now include Cannabis Science, Inc. (CBIS) up 60%, up 11%, GreenGro Technologies, Inc. (GRNH) up 29%, Hemp, Inc. (HEMP) up 48%, Medbox, Inc. (MDBX) up 58%, Rapid Fire Marketing, Inc. (RFMK) up 33%, Cannabis Sativa (CBDS) up 233%, and Tranzbyte Corporation (ERBB) up 20%.

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).

There is also 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 $39 billion market cap stock trades at 8.4 times sales.It recently generated negative earnings.

Psychemedics Corporation (PMD) has a PE ratio of 25, a price sales ratio of 3, and pays a generous yield of4.1 %. This $79 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 $586 million company trades at 14 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 owns AAPL but didn't own any of the other above stocks at the time the article was written.

By Stockerblog.com