Reporting on the Mexican Cartel Drug War

POT.COM Marijuana Stock Explodes

Thursday, November 15, 2012 |

Borderland Beat

 
The New Dot.Com

Up 442% :  On Tuesday I posted on forum this article from Wall Street Journal.  Stocks we as low at .75 to 1 dollar.  Yesterday they were at 44 dollars.  Today I hear they are over 215 (MEDBOX).  They will adjust after this initial frenzy, however there will be new entries into the market as the law gains ground and spreads to other states more small successful medical MJ companies will go public.
On November 5th , Marijuana Inc was awarded world exclusive marketing rights in preparation for the onslaught.   One of the more interesting companies that I was clueless of its existence is MJ vending machines, for medical MJ, it operates but an thumb print ID scan on the machine.  amazing two articles below....Paz, Chivis

Thank you "Richard" for this personal photo
Mark Twain is said to have remarked that a gold rush is a good time to be in the pick and shovel business. Investors may be able to apply that same bit of wisdom to the growing number of U.S. states that have legalized pot.

Although federal law prohibits the sale or possession of marijuana, Massachusetts last week joined the ranks of states — 18 plus Washington, D.C. — that allow its use for people suffering from chronic illnesses like cancer, HIV/AIDS, multiple sclerosis and epilepsy.

In Washington and Colorado, meanwhile, voters passed an initiative to allow pot for recreational use. Those changes have kickstarted a small but fast-growing medical-marijuana industry, estimated to be worth about $1.7 billion as of 2011, according to See Change Strategy, an independent financial-analysis firm that specializes in new markets.

In Colorado alone, sales topped $181 million in 2010, and the business employed 4,200 state-licensed workers, says Aaron Smith, executive director of the National Cannabis Industry Association , a nonprofit trade group that campaigns for marijuana’s federal legalization.

In addition to profiting itself from growing and selling marijuana, the industry benefits a slew of other businesses, such as insurers, lawyers and agricultural-equipment firms, experts say.

“Call it the ‘green rush,’” says Derek Peterson, CEO of GrowOp Technology, an online retailer of hydroponics — products used in the cultivation of indoor plants — and a subsidiary of OTC stock Terra Tech /quotes/zigman/8701126/quotes/nls/trtc TRTC 0.00% . “The industry is expanding, and there are all kinds of investment opportunities.”

For regular investors looking to get in on the action — and without having to actually grow or sell drugs — there are several small-cap stocks that stand to gain from marijuana’s growing acceptance. Medbox /quotes/zigman/7157004/quotes/nls/mdbx MDBX +80.00% , an OTC stock with a $45 million market cap, for example, sells its patented dispensing machines to licensed medical-marijuana dispensaries.

The machines, which dispense set doses of the drug, after verifying patients’ identities via fingerprint, could potentially be used in ordinary drugstores too, says Medbox founder Vincent Mehdizadeh. Based in Hollywood, Calif., the company already has 130 machines in the field, and it expects to install an additional 40 in the next quarter. “The smart money is trying to help with compliance and transparency,” Mehdizadeh says.

Of course, investing in drugs the federal government still outlaws poses enormous risks to investors, says Sam Kamin, a law professor and the director of the Constitutional Rights & Remedies Program at the University of Denver.

In fact, nearly 500 of the estimated 3,000 dispensaries nationwide have either been closed by the federal government or shut down in the past year, says a spokesman for StickyGuide.com , an online directory and review site for medical marijuana dispensaries — and yet another ancillary business that’s currently seeking investors.

That said, there are many companies that appear to be betting on a change in federal law.

Steep Hill is a quality-control laboratory that tests medical marijuana to see if there’s any contamination from mold, bacteria or harmful pesticides. The company, based in Oakland, Calif., is also actively seeking funding of up to $3 million. David Lampach, co-founder and president of Steep Hill, expects a federal law legalizing medical marijuana within the next decade.
 
Click to enlarge
Cannabis Science in Colorado Springs, Colo. /quotes/zigman/11136879/quotes/nls/cbis CBIS +22.06% , an OTC stock with a market cap of $41 million, is developing marijuana-based medicines to help cancer and HIV/AIDS patients. “We’re at the beginning of the revolution in medicine,” says CEO Robert Melamede.

Other companies are creating a range of quirky products that allow people to use marijuana without smoking it. Medical Marijuana /quotes/zigman/548382/quotes/nls/mjna MJNA -7.98% an OTC stock with a $69 million market cap, based in San Diego, Calif., offers more than 50 ways to ingest marijuana , from Dixie Elixir soda to Dixie Chill ice-cream and a range of Dixie Edibles, like chocolate truffles and crispy rice treats.

While experts say competition in the medical-marijuana business is growing fast, they add that there are also still plenty of opportunities for entrepreneurs. For example, Troy Dayton, president and CEO of ArcView Group , an angel investor network for the industry, says demand has been growing for handheld tobacco vaporizers like those made by Ploom (which charges $250 for its “premium loose-leaf vaporizer”). “There’s a rush now to make the ideal vaporizer,” Dayton says. “There’s still room for a kingmaker in this space.”

In the meantime, at least one drug company is directly selling medical marijuana to patients around the world. GW Pharmaceuticals /quotes/zigman/286334/quotes/nls/gwprf GWPRF +3.36% , based in London, markets Sativex, billed as the world’s first marijuana-based medicine.

With a market cap of around $137 million, it’s listed on the Alternative Investment Market, a submarket of the London Stock Exchange. Sativex is currently sold as a mouth spray to help alleviate symptoms of multiple sclerosis in several countries, including the U.K., New Zealand, Germany, Spain, Denmark and Canada, a spokesman says, and it is currently seeking FDA approval in the U.S. for use as a pain reliever in late-stage cancer patients

THE GREEN RUSH
 
Article from Investor Pro MSN
                                                                  
These are heady times for supporters of legalized marijuana as well as those looking to cash in on pot's growing national acceptance. This month, voters in Washington state and Colorado agreed to legalize the recreational use of marijuana for adults. And medical marijuana is currently legal in 18 states and Washington D.C.

Of course, marijuana remains illegal by federal law. But people involved in what some are calling the "green rush" are still looking at business and investment opportunities in cannabis and its production.
And as with nearly all markets, some people are willing to take the risk.
"Think of it as another dot.com explosion," said Bruce Perlowin, CEO of Hemp Inc. (HEMP +20.83%), in a recent press release. 
 And according to an investor fact sheet or Medical Marijuana Inc. (MJNA +10.87%), the current U.S. medical marijuana industry is estimated at $17 billion, with expectations it could grow up to about $29 billion by 2016.
"It was almost unthinkable 10 years ago that you would have legitimate, fully reporting to the SEC companies that were in the nature of pure plays, with positions in the medical marijuana industry," says Sterling Scott, CEO of Los Angeles-based GrowLife Inc. (PHOT +50.00%), a consortium of companies that sells products for indoor growing.
Scott, a former federal regulatory attorney, estimates there are about 10 cannabis-related companies currently being traded as over-the-counter stocks. Most OTCs are relatively small and often new companies that don't yet meet the requirements to be listed or traded on exchanges like Nasdaq or the New York Stock Exchange.
The future of large dispensaries is yet to be determined
 
Click to enlarge
Scott  breaks down these marijuana sector firms into four groups:
 
o   Established companies, like GrowLife, that sell equipment and expendables for the cannabis industry.
o   Companies like Medical Marijuana, whose mission, according to its website, is to become the industry's "premier cannabis and hemp industry innovators."
o   Groups like Hemp Inc. that are looking to develop a legal market for the industrial and commercial use of hemp (which contains only trace amounts of marijuana's active ingredient) in products such as paper, oils and cloth.
o   Companies focused on the clinical, medical use of cannabis in areas such as cancer, inflammation and pain treatment.
"The safest position during the Gold Rush in California in the 1800s was to sell (miners) the equipment they needed to go out and explore for gold," explains Scott. "Our company has taken a fairly conservative position, as to the kind of things that we can engage in, because of the federal law position. And we intend, until there's a great deal more clarity on the federal side, to continue to be fairly conservative. But that's not true of all these companies."
So are these small stocks worth an investor's time? It depends on how the future plays out for the sector.
"If the new marijuana laws in Colorado and Washington… are a sign of things to come, if you're a firm that can benefit by this industry being created into a legal and viable industry, then if you can get in early enough, then those stocks may go up in value," says Mac Clouse, professor of finance at the University of Denver's Daniels College of Business.


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13 Borderland Beat Comments:

Anonymous said...

If weed goes corporate it will wreck the industry

Anonymous said...

The entire world has been and continues to be subjected to a 'PLANNED' Economic Financial COLLAPSE

( http://www.overlordsofchaos.com/html/planned_takedown_of_financial_.html )

AND SUDDENLY 'We' are being fed 'the hope of 'the UTOPIA of The Results Of 'THE Legalization of drugs!!!', OH W.H.A.T. 'LIBERATION MEASURES' UNDER WAY FOR MANKIND!, SUCH FREEDOM MESSAGE, A BETTER WORLD IS COMING, IS ON ITS WAY!! = S.U.C.K.E.R.S.!!

Let me repeat my opening message:

The entire world has been and continues to be subjected to a 'PLANNED' Economic Financial COLAPSE ( http://www.overlordsofchaos.com/html/planned_takedown_of_financial_.html )

and SUDDENLY 'We' are being fed 'the hope of 'a UTOPIA based on, in part, on The Results Of 'THE Legalization of DRUGS!!!', OH W.H.A.T. BENEFICIAL 'LIBERATING MEASURES' UNDER WAY FOR MANKIND!, SUCH a FREEDOM MESSAGE ¿to how many of us Human Beings Born with a Mom and Dad without the need of Maruguana!,

... and now, A BETTER WORLD IS COMING to us all, IS ON ITS WAY!!, 'somebody, some heavenly Help id going to legalize D.R.U.G.S.


¿What could humanity EVER DO 'without ADDICTIONS?!!!!'

... and there's a sucker born every day: STOP LISTENING TO THE SO-CALLED EXPERTS (Dr. Phil, Opera, and OTHER GURUS!! given to us by the TV MEDIA ... ) AND RECLAIM YOUR HUMAN 'VALUESSSSSSSS', valoresSSSSSS !

Anonymous said...

Stocks are getting high? Or going high? Wait I'm high and I don't own stock

Anonymous said...

The sky won't fall, but the economic impact will be outstanding! In some ways, the money has been flowing all along, it just isn't acknowledged. People will kick and scream, but when they see the dollars, their minds will change.

Anonymous said...

Why is it that government stopped creating its own money and began borrowing the money from big international banker 'AT INTEREST!'? And so here we have the economies world wide going tits up. In the United States it's the Federal Reserve, a privately owned bank, in Canada it's the Bank of Canada, and the USA is at war with a number of countries because they want to set those countries up with the same monetary system, a central bank, an international monetary fund, a world bank, this war is about DICTATORSHIP and setting it up world wide. This talk about legalization of drugs is just a distraction and what will you do when your money is worth nothing like it was in 193 during the so called great depression?--which was purposely created by those same cunning rogues the international bankers.

The SUA Debt Clock:

http://www.davemanuel.com/us-national-debt-clock.php

AN older post:

http://www.davemanuel.com/2009/09/18/who-does-the-united-states-owe-nearly-12-trillion-dollars-to/

and take a look at what's going on in Europe since they were duped into joining the E.U.--Greece, Spain, Portugal, Ireland, and the list goes on, they're being told to take Austerity Measures because of the impossible debt to pay back DEBT

TV feeds you TRIVIA and takes you into wonderland while what REALLY matters you've been taught not to be interested in, AS IF YOU SHOULDN'T CARE ABOUT WHAT'S BEING DONE TO YOUR COUNTRY & BEING FOREVER ENSLAVED BY DEBT & when you're gone your children will be struck with the impossible mess

Anonymous said...

I'm buying in on at least 3 weed stocks, so called medical for now, but they are looking at the big picture. Might as well try to make money from this the legal way, and I wont have to cut off any heads.

Anonymous said...

Good. This is generating legitimate cash flow. Fantastic. Mexico, get your head out of your ass and legalize every fucking thing.

Anonymous said...

Opera hahahahahaha

Anonymous said...

Hey ->>

"November 16, 2012 2:11 PM" (I'm buying in on at least 3 weed stocks, so called medical for now, but they are looking at the big picture. Might as well try to make money from this the legal way, and I wont have to cut off any heads.)

My advice is this: STOCK UP ON 'Medical Macaroni' INSTEAD, IT'S cheaper, LEGAL (it can be smoked!), COSTS LITTLE, & YOU CAN SHARE IT WITH EVERYBODY--e.v.e.r.y.b.o.d.y!! and, I want a first serving!!, DAMN, I JUST LUV MACARONI!!

Holy jumpins, I've got to go, it's almost 1 A.M.
'Macaroni Time'

kanchan tyagi said...

cannabis growing is the best weed for indoor and really thankful to you for posting this blog, Cannabis is illegal in some places but I don't think so, that it is harmful for everybody. So really thankful to you for posting this blog.

Anonymous said...

sad beyond words as more and more pot heads take over what was once a beautiful country.

Anonymous said...

You are ignorant. marijuana was dubbed illegal at the same time as alcohol, all due to the political heads at the time believing it would be for the best of the people. no one heara that there was huge unrest in the physician community that marijuana is a safe and non,addictive alternative to opiates. Marijuana has been proven to be not only a valuable fight aganst many aches pains and diseases, but also relief to many mental disorders as well. Try researching your subject some before going on,a dumb a*s rant next time

John peterson said...

i am thinking that its a brilliant post. . . You are ignorant. marijuana was dubbed illegal at the same time as alcohol, all due to the political heads at the time believing it would be for the best of the people. no one heara that there was huge unrest in the physicianhttp://canabud.ca/canadian-stores/category/ontario-marijuana-stores

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