Exclusive Interview with Chet Billingsley CEO of Mentor Capital on the Marijuana Industry

The following fascinating and informative interview was provided by Chet Billingsley, the Chairman, CEO, and founder of Mentor Capital, Inc., a public operating company that invests in pre-IPO cannabis related businesses. He did his undergraduate work at West Point. He later received a Master’s Degree in Applied Physics at Harvard University with concurrent study at Harvard Business School, and at MIT studying proton radiology. He is also a founding director and officer of the board of directors of the Nevada Cannabis Industry Association.

The discussion includes the following:

• What has happened in the cannabis industry during the last five years
• Why high excise taxes can cause the illegal market to continue
• Tilray and the Canadian market
• Why low excise taxes caused the legal Canadian marijuana market to grow
• The US cannabis regulatory scene
• Beer companies buying interests in marijuana businesses
• Tobacco companies getting into the marijuana businesses
• The growth of the medical marijuana market versus the recreational marijuana market
• Cannabis versus opiates
• Cannabeer and canabeverages
• The cannabis sub-industries, such as edibles, local delivery services, etc.
• And much more extensive interesting information!

To stream the interview, click:

HERE

All opinions are those of the interviewee, and do not represent the opinions of this website or the interviewer. Neither this website, nor the interviewer, nor the interviewee are rendering tax, legal, or investment advice in this interview. No investment advice is expressed or implied. No recommendations are made to buy, sell, hold, or short any security. All information is provided for education and general information only.

Disclosure: Interviewer owns shares of MNTR and has a short position in TLRY.

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.

Exclusive Interview with Rob Hunt of the Largest Private Equity Cannabis Fund

The following fascinating interview was provided by Rob Hunt, a partner and the Lead Industry Executive at Tuatara Capital, the largest private equity fund in the cannabis industry. He also has an extensive background in cannabis business in Colorado, Massachusetts, New Hampshire and Maine as well.

Rob  Hunt has more than 15 years of experience in the cannabis industry as an attorney, a consultant, and a serial entrepreneur. Rob is currently a Partner, and the Lead Industry Executive of Tuatara Capital.

Mr. Hunt was formerly the Chairman of the Coalition for Responsible Patient Care, based in MA, where he spearheaded the initiative to help develop and implement the fledgling medical cannabis market in the Commonwealth. He was the principal developer of cannabis.org, a website focused on changing the scheduling of cannabis away from being a schedule I drug on the Federal Government’s list of controlled substances, Rob still authors all of the written commentary on the cannabis.org Facebook page where he has an audience of close to 20,000 readers.

We cover a lot in this interview, including:

• The California marijuana proposition
• Why marijuana has remained illegal for so long
• The current credit card ban on dispensaries 
• Opinion on publicly traded cannabis stocks
• Crowdfunding for marijuana related companies
• Willie Nelson's brand of marijuana
• Advice for investors interested in allocating funds to the cannabis industry
• Advice for those who are interested in setting up a marijuana startup

The Interview

You will certainly enjoy all this great information that Rob Hunt provides.

To stream the interview, click:

HERE

You can download as an mp3 by right-clicking here and choosing "save as."

More information about Tuatara Capital can be found HERE.


Let us know what you think about this interview by entering your comments in the comment section below. You can also check out the stocks in the WallStreetNewsnetwork.com Marijuana Stock Index.

All opinions are those of Rob Hunt, and do not represent the opinions of Stockerblog.com or the interviewer. Neither Stockerblog nor the interviewer nor the interviewee are rendering tax, legal, or investment advice in this interview.

Nasdaq Denies Cannabis Technology Company MassRoots; Shuns the Regulated Cannabis Industry

Denver, CO (May 25, 2016): MassRoots (OTCQB: MSRT), one of the largest and fastest growing technology platforms for the cannabis industry, received notification on Monday, May 23, 2016, that the Nasdaq will be denying MassRoots’ application for listing. The Nasdaq determined that as MassRoots may be deemed as aiding and abetting the distribution of an illegal substance, they are unwilling to proceed with MassRoots’ listing application. MassRoots plans to appeal the staff decision to the Nasdaq Listing and Hearings Review Panel.

“With this decision, the Nasdaq has set a dangerous precedent that will prevent nearly every company in the regulated cannabis industry from listing on a national exchange. This will have ripple effects across the entire industry, making it more difficult for cannabis entrepreneurs to raise capital and slow the progression of cannabis legalization in the United States,” stated MassRoots CEO Isaac Dietrich. “This decision must not be allowed to stand and we’re asking every cannabis investor, business, activist and supporter to write a brief note to the Nasdaq in support of our appeal here.”

“If we were a social network for tobacco users or alcohol consumers, the Nasdaq would likely be moving forward on our application even though alcohol and tobacco cause far more deaths and societal damage than cannabis ever will.  Moreover, the Nasdaq has already listed at least 4 biotechnology companies that extract compounds from the cannabis plant for scientific research – actually touching the plant as part of their business model,” continued Dietrich. “We believe the Nasdaq has inappropriately denied our application and look forward to making our case not just to the Nasdaq Listing and Hearings Review Panel, but directly to the American public.”

MassRoots has requested the Nasdaq’s denial letter in writing and will file an 8-K within 4 business days of receipt. The Company plans to appeal the Nasdaq’s decision shortly thereafter. MassRoots will not be affecting a reverse stock split unless its appeal from the Nasdaq is granted.

About MassRoots

MassRoots is one of the largest and most active technology platforms for cannabis consumers, businesses and activists with 900,000 users. It is proud to be affiliated with the leading organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association. MassRoots has been covered by the Financial Times, Forbes, Fox Business, Bloomberg, Fortune, and CNBC. For more information, please visit MassRoots.com/Investors.

This information does not constitute an offer to sell or a solicitation of an offer to buy securities or assets of MassRoots. All information presented herein with respect to the existing business and the historical operating results of MassRoots and estimates and projections as to future operations, the success of events that we are attending, and other information, is based on materials prepared by the management of MassRoots and involve significant elements of subjective judgment and analysis which may or may not be correct. While the information provided herein is believed to be accurate and reliable, MassRoots makes no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. In furnishing this information, MassRoots reserves the right to amend or replace some or all of the information herein at any time and undertakes no obligation to provide the recipient with access to any additional information.  

Forward-looking Statements:

Certain matters discussed in this announcement contain statements, estimates and projections about the growth of MassRoots' advertising business, potential partnerships, and our related business strategy. Such statements, estimates and projections may constitute forward-looking statements within the meaning of the federal securities laws. Important factors that could cause our actual results to differ materially from those anticipated by the statements made herein include, among others, the success of our advertising initiatives, the continued growth and engagement of our user base, our ability to work with partners of the Company, and unforeseen technical or other problems or issues that could affect the performance of our products or our business. Further information on our risk factors is contained in our filings with the SEC, including the Amendment to our S-1 Registration Statement filed on October 29, 2015. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. MassRoots undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The recipient of this information is cautioned not to place undue reliance on forward-looking statements.

Weeding Out the Best Pot Stock: GW Pharmaceuticals

Headquartered in Salsbury, United Kingdom, GW Pharmaceuticals (NASDAQ:GWPH) uses its proprietary cannabinoid product platform to create and develop new therapeutics that can be used for a variety of treatments. The company's therapeutics, along with current and proposed treatments, include:

·      Sativex® for treating chronic cancer pain and multiple sclerosis spasticity

·      Epidiolix® for the treatment of childhood epilepsy, Dravet syndrome, and Lennox-Gastaut syndrome

·      Cannabidivarion for treating epilepsy

·      GWP42003 for treating ulcerative colitis and schizophrenia

·      GWP42004 for treating type-2 diabetes

·      GWP42002: GWP42003 for treating glioma, a tumor that starts in the brain or spine

One important development is that Sativex® was given Fast Track designation by the FDA for the treatment of chronic cancer pain in patients with advanced cancer who are not responding to opioid therapy. It is currently in a Phase 3 program for cancer pain with the FDA. Sativex® is already approved in 26 countries for spasticity caused by multiple sclerosis.

Strong Cash Position and Growing Revenues

In an industry where most companies don't even report revenues, GW has been generating revenues for years. For the latest reported quarter, revenues were up by 4.9%. Although the company has been generating losses, it has a huge cash cushion from its secondary offering in June of this year, netting the company $118 million, an increase of 342% in cash position over fiscal year end last year.

GW  in GBP 000's	6/30/2014	6/30/2013*	% Change
Revenue	7,611	7,258	4.9%
Cash	168,268	38,069	342.0%
Total Equity	157,774	35,402	345.7%

Balance sheet data as of 9/30/2013, fiscal year end

Revenue Growth

Revenue growth was primarily due to an increase in Sativex product sales generated by a rise in shipments to the company's commercial partners. In addition, total net revenues were helped by an increase in income from license, collaboration, and technical access fees.

Net loss went from GBP 2.028 million to GBP 6.928 million, due to a higher cost of sales from the higher volume of inventory shipped, an increase in research and development expenditures, and a rise in administrative expenditures caused by increased staffing expenditures and an unrealized loss on foreign exchange.

Inventories have remained constant over last year, at roughly GBP 4.7 million. In regards to guidance, the company expects strong double digit revenue growth for 2014.

Business Developments

Epidiolex®

FDA Authorized Physician-Led Access Program with about 100 children now receiving treatment in the United States at six hospital locations.

Orphan Drug Designation, Fast Track Designation were granted. An Investigational New Drug Application  has been opened with the FDA for the treatment of Dravet Syndrome. An additional Phase 3 trial is on track to begin in 2015.

Orphan Drug Designation was granted by the FDA for treating Lennox-Gastaut Syndrome. Phase 3 trials are on track to begin in 2015.

The company is collaborating with New York State and Georgia for Epidiolex clinical trials for epilepsy.

Sativex®

Phase 3 cancer pain data is expected to be released at the end of 2014, which would lead to an FDA New Drug Application.

Cannabidivarin

A Phase 2 trial for epilepsy should begin at the end of 2014 or the beginning of 2015.

Competitiion

Competition for this company could be looked at several ways. It could be examined as a biotech company, such as Biogen (NASDAQ:BIIB) and Questcor (NASDAQ:QCOR).

Or it could be looked at as a medical marijuana company, of which there are dozens. However, most of the other companies in this field are microcap stocks and penny stocks. The nearest competitors, based on large market cap, are Solvay SA (OTC:SVYZY), at a $13 billion market cap, which produces Marinol, a form of the primary marijuana ingredient tetrahydrocannabinol, commonly known as THC, and Valeant Pharmaceuticals Intl.            (NYSE:VRX), at a $42 billion market cap, which  distributes nabilone/Cesamet, a form of synthetic THC. Yet, in both of these cases, the THC drug is only a small part of their business.

If you are looking for other competitors, you can find a list of over 100 marijuana stocks at WallStreetNewsNetwork.com, along with information on the Stockerblog.com Marijuana Stock Index.

Timeliness

In the recent November election, Alaska, Oregon, and the District of Columbia have legalized the recreational use of marijuana. However, what is more important, and not many realize, is that 23 states have already legalized the use of medical marijuana.

Summary

GW Pharmaceuticals is a worldwide leader in the development of plant derived cannabinoid therapeutics.

GW is one of the few medical marijuana stocks with a market cap of over a billion dollars.

The company has been in business for 15 years and has produced the first marijuana related prescription drug, Sativex.®

It recently raised $118 million in a secondary offering.

Revenues for the latest reported quarter were up 4.9%.

Conclusion

GW has had a heck of a run this year, doubling in share price, so an investor obviously has market risk, and considering the speculative nature of the stock, if the stock market tanks, this stock could suffer much more than the average stock.

As is typical for many biotech companies, GW is not generating earnings yet. On the plus side, the company is increasing quarterly revenues on a year over year basis and has several therapeutic products in the pipeline. In addition, it is flush with cash.

So for investors that are willing to take the risk, and want to participate in the medical marijuana industry, you can't find a more solid pure play than GW Pharmaceuticals.

Disclosure: Author did not have any positions in any of the above at the time the article was written and has no plans to do so in the next 72 hours. 

By Stockerblog.com

The Connection Between Warren Buffett Berkshire Hathaway and Marijuana

First it was chocolate, then it lead to marijuana. All investors know that Warren Buffett has had an outstanding return through his Berkshire Hathaway (BRK-A) (BRK-B), the highest priced American stock, which traded above $210,000 a share today.  Buffett's Berkshire owns a very diverse, and somewhat eclectic group of companies, everything from insurance, to engine oils, to underwear, to private jets, to ice cream, to newspapers.

One business that it owns is See's Candies, which is one of the best tasting candy manufacturers in the United States, using that "addictive ingredient" chocolate.  I normally don't eat candy, but I sometimes make an exception around the holidays with See's Candy. If you have never tasted it before, you need to try it at least once. Unfortunately, (or fortunately for the quality control), it is only available in 15 states.

So now what? According to an article in Bloomberg, Berkshire Hathaway is getting in to the marijuana cultivation business. Here is how they are doing it. Berkshire has a division called MiTek which has a subsidiary Cubic Designs, in the business of providing warehouse space platforms, is promoting its business to medical marijuana dispensaries, and even recreational marijuana dispensaries in Colorado and Washington. The company sent out approximately 1,000 flyers with a picture of a warehouse with mezzanine platforms with plants growing on them, emphasizing that growers can double the amount of space that can be available for growing plants.

Will the marijuana industry add a lot to Berkshire's bottom line? No. Will it help boost the price of Berkshire to a million dollars a share? No. But what this business does do is add a little more legitimacy to the marijuana growing industry.

The latest stocks in the Berkshire Hathaway portfolio are in less exciting industries. One of the companies is in the pipe business, not the kind you smoke but the ones used to transport oil and gas. The company is Now Inc. (DNOW). The other is in the cable television business, Charter Communications (CHTR).

You can find all the Warren Buffett stocks at WallStreetNewsNetwork.com. Yet, the best way to invest like Warren Buffett is through the Berkshire B shares (BRK-B), which sells for less than $150 a share.

Interview with the Founder of Rolling Paper Depot: Unique Insight into Startups and the Medical Marijuana Industry

Stockerblog.com has featured several articles on the medical marijuana industry, such as The Growth of the Medical Marijuana Industry and the Stocks that Participate,  Marijuana Stock Index Up 339% Last Year, and Rolling Papers Stocks: The Forgotten Medical Marijuana Play. This interview, courtesy of StartupAlmanac.com, will give additional insight to this industry and provide extensive information on the key factors that make a startup successful.

Readers who are interested in learning how a startup became very successful will find this interview fascinating. In a continuation of our series on startups, the following interview was graciously provided by Jarrod Smith of Rolling Paper Depot, a fast growing online company that was started with less than $2,500.

Why don't we start by briefly describing what the company does? 

Rolling Paper Depot is an online retailer of rolling papers and smoking accessories for the roll-your-own enthusiast.  We provide a wide selection of products that aren't always available at gas stations or smoke shops.  Our goal is to provide our customers with great prices and excellent customer service. 

How did you happen to come up with the idea for the business?

Believe it or not, the business idea literally landed on my desk out of the blue.  I own several e-commerce companies and somehow a catalog for rolling papers landed on my desk.  I thought to myself, "who would buy rolling papers online? Can't you just go to 7-11?"  My naivety of the situation was comical.  I did a good bit of research on the market and was surprised to find that the business is viable.  It is not the biggest company I have, but it is the most fun to work on.  

Did you get any venture capital to begin with or are you self funded?

We are completely self-funded.  In fact, I started this company with less than $2500.  Today that would not be possible.  The market is extremely competitive and I suspect "Big Tobacco" will eventually enter the niche because of the ongoing legalization of medical marijuana.  

This is outside of the scope of the question, but I predict that "Big Tobacco" will migrate from tobacco to medical marijuana. I'm not saying tobacco is going to cease to exist, but in the future it won't be as prevalent as it is today.  I think "Big Tobacco" is actually working to delay federal legalization of marijuana.  Once they find out how to package it and sell it in conjunction with "Big Government", the entire landscape of MMJ will change into something like the beer industry where the Coors and Millers of the world sell the majority of the product and the "boutique" MMJ shops will turn into micro-breweries of sorts.  The best product will be in the small shops, but they won't be able to produce as much or be as competitive on price as the big boys. 

How long have you been in business and is the company a corporation, an LLC, a partnership, or what?

The company is a LLC. We have been in business for about 4 1/2 years.  

The recreational and medical marijuana industry seemed to take off in January after the legalization in Colorado. Did that provide a substantial increase to your sales?

It's difficult to attribute legalization of marijuana to an increase in our sales because our sales have been growing steadily since we started.  However, I think the "buzz" around legalization has sparked an interest in some products we carry. 

Any thoughts on what  will happen with the upcoming ballot elections on recreational and medical marijuana?

 The legalization of marijuana isn't an issue that is red or blue.  Nearly three fourths of the people in the US are sick of the battle over marijuana.  Our government is spending tons of money fighting a losing battle.  People are being charged with felonies and going to jail.  Our jails are full and our citizens are struggling to find jobs.  It just doesn't make sense to fight it anymore and the majority of people are fed up.  My thoughts are that the states will continue to legalize marijuana and eventually the federal government will have to give in to the will of the people.  At least, that's how it's supposed to work anyway. 

How many employees do you have and do you use virtual assistants?

We have 7 employees and we do not use virtual assistants.  Everything we do is in-house.

How were you have to get the the top of Google search, and do you consider high ranking a key in being successful?

I have been doing SEO for nearly 10 years.  I own an internet marketing company also and that helps me stay at the top.  I think being on the first page of Google for keywords in any industry is extremely important to succeed. Most people know a little about SEO, but they fail to see the benefits of social media marketing.  In fact, when I launched my latest e-commerce company in the roller skating niche I didn't focus on keyword rankings at all.  Instead, I focused on a large social media following.  Interestingly enough, that is actually leading to higher keyword rankings because my social followers are linking to my website for me.  The more links I get the better my rankings are.  This technique isn't "cutting edge", but it is definitely the progressive way to market an internet start-up in 2014.  

Tell us a little about your background.

 I am an entrepreneur at heart.  I built my first business in the 6th grade selling blow-pops at school. I hid it from my parents because I didn't think they would approve. I'm not sure why.  As it turns out, the school didn't particularly appreciate the competition.  My candy was cheaper than the school's candy.  Eventually I got caught and I had to stop selling blow-pops. The principal called me to his office and then called my father to discuss my "business".  They had a good laugh about the entire thing while I sat scared to death of what might happen to me.  My parents were impressed with my work and gave me the obligatory scolding for taking the lunch money of my schoolmates.  Since then I've had a keen eye for business opportunities and I've kept solid ethical standards. 

I got my first computer in 1994 and I had a dial-up internet connection.  I was not particularly interested in "chatting with someone in Germany", but thankfully my mother forced it on me.  She definitely saw the benefits of being proficient on the computer.  The first part of my experience on the internet was mostly IRC and learning the Linux OS.  As I learned more I did some tech work with Windows machines, but eventually I got a job as a Linux System Administrator.   Though it was unrelated to my duties, that job led me to learn SEO and internet marketing.  I also got my first experience with e-commerce at that job.  Once I learned both the marketing and e-commerce processes, I set off on my own to build my own e-commerce companies.  Rolling Paper Depot is one of those companies.

I believe my technical background has proven to be extremely beneficial for my businesses. My competitors have to hire out internet marketing and SEO.  They also have to pay programmers and designers to keep up their sites.  These services are expensive and time-consuming.  We are lucky enough to have all of these services in-house.  I have also been able to develop proprietary software and shopping-cart modules that keep me ahead of the competition.  

What are your plans for the future of the company?

My plan is to continue to grow the company and increase my market share world-wide.  We have considered licensing our name to shops around the globe to build our market share. I am fairly private about the details of my plans because I believe that I am an innovator and that secrecy allows me to stay ahead of the competition. I like to be first with website features so I'll hold those cards close to my chest for now.  I believe my plans for 2015 will grow the company by 30% or more. 

What do you consider your biggest challenges as a startup?

 Wow!  Good question.  There are so many challenges these days.  Starting a business and being successful has grown increasingly difficult over the years.  I feel the answer to this question probably changes by the month, but as of today my personal biggest challenge is patience.  I see what this company can be and I see the growth.  I just want it to grow faster.  I want to push my people harder.  I want to see the legalization movement progress quicker.  Unfortunately for me, these things take time and some things shouldn't be forced.  Patience is my challenge. 

What one piece of advice would you give someone who is just at the beginning stages of developing a startup?

Predict the future. How can one do this?  I'll share a trick that I have found particularly useful.  You can never go wrong if you build a business based on pending legislation.  When laws change there are often new opportunities.  For example, when the credit reporting laws changed (Fair Credit Reporting Act) there were many start-ups that built a business that helps people clean up their credit based on the new laws. This opportunity did not exist before the change in the laws! These start-ups were wildly successful and the ones that were set-up and ready to service customers immediately after the laws went into effect are the ones that still stand today.  But, to compete in this market today is an act of futility.  One would need massive funding and a huge budget for marketing.  Barring some kind of revolutionary approach to the market, you will have a hard time competing in this niche. 

Build a business that will service the future needs of people.  It is difficult to start and grow a business in a market that is well-established.  This is especially true if the Wal-Marts of the world are already selling your product or service.  A start-up cannot compete with these huge companies.  However, if you spend your time and energy on a business that is going to be big in the future, your success can be virtually unlimited.  You will have less competition and you can actually set the standard for products and customer service in your niche.  If you time it right, you might end up with a FaceBook or Yelp.  What's the bottom line?  Lead.  Never follow.

No investment recommendation nor any investment promotion is expressed or implied by either the publisher, the interviewer, the interviewee, or any of the interviewee's companies..

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

Rolling Papers Stocks: The Forgotten Medical Marijuana Play

With the huge attention given to companies involved in the medical marijuana or recreational marijuana boom, investors have turned to such companies as fertilizer producers, electronic cigarette manufacturers, garden suppliers, and other companies with very tenuous connections to the marijuana industry. However, one area that has been forgotten is the rolling papers industry. These are the companies that manufacture and market cigarette rolling papers, used as a primary form of consuming cannabis historically.

One of the reasons that these companies are overlooked are that most of these companies are either privately held or are based in Europe. Some of the popular brands, such as Zig-Zag, JOB, and Abadie rolling papers are produced by Republic Group, a privately held company based in in Perpignan, in Pyrénées Orientales, in in Southern France.

Bugler cigarette papers are made by Scandinavian Tobacco Group which is owned by Swedish Match. (SWMAY) (SWMAF), which trades over-the-counter in the United States and also trades on the NASDAQ OMX Stockholm Exchange. The company also makes matches, lighters, and tobacco products. The stock trades at 18 times trailing earnings and 2.5 times forward earnings. Revenues for the latest quarter were up 1.1% yet earnings dropped 21.7%.

One of the oldest brands of rolling papers is RizLa+, which were first made in 1532. The papers are produced by Imperial Tobacco Group (ITYBY) (ITYBF), which trades over-the-counter in the US, and on the London Stock Exchange. The stock has a trailing price to earnings ratio of 38. Both earnings and revenues were down big time for the latest quarter, -40.1% and -4.9% respectively.

Will American tobacco companies get into the marijuana business? That remains to be seen. In the 1960's and 1970's, there were rumors that tobacco companies had registered trademarks of 'famous' marijuana names like Acapulco Gold and Maui Wowie. Based on my initial research, I haven't found that to be true.

However, here is something interesting. In 1973, Heublein, the the publicly traded alcoholic beverage company that distributed such brands as Smirnoff vodka and Jose Cuervo tequila, registered the Trademark Acapulco Gold as a drink mix. Then, get this, in 1982, the R. J. Reynolds Tobacco Company acquired Heublein Inc. Reynolds Tobacco is a subsidiary of Reynolds American (RAI). Yet, the trademark is now listed is Dead by the US Patent and Trademark Office.

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

Over 70 Marijuana Stocks: New Ones Appearing Every Day

Marijuana Leaves

Another day, another company claims to be involved in the marijuana business. And no wonder, since the Stockerblog.com Marijuana Stock Index is up by an amazing 390% during the first couple months of the year, whereas the S&P 500 was up by only 0.6%.

Marijuana Stocks Up 390% in Two Months

Unfortunately for the conservative investor, none of the recent additions to the WallStreetNewsNetwork.com Marijuana Stocks list would be considered blue chip stocks. Most are micro-cap stocks, penny stocks, and sub-penny stocks. A sub-penny stock is one which trades for less than one cent per share. Connections to the marijuana industry may be a stretch for many of these companies.

Some of the new companies added to the list include Advanced Content Services    (ADCS), with a market cap of 1.98 million, Minerco    (MINE), with a 13.43 million market cap, Next Gen    (NXTTF) at 3.5 million, Latteno Food    (LATF) at 14 million, Medifirst Solutions    (MFST)   at 1.8 million, and Vapor Group, which was formerly called AvWorks Aviation (SPLI)  at a market cap of   61.56 million.

Of course, many of the marijuana companies have been in the marijuana business for a while, such as Terra Tech   (TRTC), a manufacturer of growing equipment. The company has a market cap of 106 million.

Marijuana Plants

Another growing equipment company is  GrowLife Inc.    (PHOT) with a market cap of  429 million.

Tranzbyte Corporation    (ERBB)    which has a market cap of 214 million, produces the ZaZZZ medical marijuana dispensing machines.

A list of all the marijuana stocks, along with available financial data, and the connection to the marijuana industry, is available at WallStreetNewsNetwork.com. As always, no recommendation is expressed or implied for any of the above mentioned stocks.

Disclosure: Author owns TRTC.

By Stockerblog.com