Six (Additional) Marijuana Stocks With More Than 5,000 Seeking Alpha Followers

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Includes: BLOZF, CANN, CVSI, GRNH, INSY, MCIG, VPCO
by: Anthony Cataldo

Summary

The most followed marijuana stocks (>5,000 SA followers) are in the [1] Biotechnology (n=3) and [2] Hemp Products (n=3) sectors.

No marijuana stocks in the [1] Digital News & Content, [2] Investing & Finance, [3] Marijuana Products, [4] Real Estate, or [5] Software & Technology sectors have >5,000.

Recall that we are looking at a possible tripling or quadrupling of the U.S. market for “recreational” marijuana in the November 8, 2016, elections/ballot measures.

Also, recall that it is not uncommon for these marijuana stocks to spike or over-react during these elections, only to decline, significantly, before calendar year-end.

Marijuana stocks (n=7) examined in my earlier article are referenced in the APPENDIX.

Disclosure: The only marijuana stock that I continue to hold, long term, is Cannabix Technologies (OTCPK:BLOZF). I do not expect to day-trade or buy-and-hold any of the stocks addressed in this article.

The one-month chart through mid-October 2016 suggests a stabilized marijuana index increase with some follow-through, and October appears to be shaping up as a very good month for the U.S. Marijuana Index:

Click to enlarge

The Marijuana Index "Universe"

Only n=13 [187-174] of the "Marijuana Index Universe" stocks have more than 5,000 Seeking Alpha followers. Below is a listing of the n=6 of these stocks included in each of the 12 segments, and from the marijuana index "universe," but with more than 5,000 and less than 10,000 SA followers. The firm name and ticker symbol, along with the number of Seeking Alpha followers, as of October 1st, 2016, are provided, along with a ranking, from largest (1st) to smallest (6th) follower count.

Below are the n=6 marijuana stocks with more than 5,000 Seeking Alpha followers:

[There are n=13, in total, if you include the n=7 covered in a prior SA article. The latter group is summarized in the APPENDIX.]

MJIC

< 5,000

Between 5,000 & 10,000

Number of

Sector

Universe

SA Followers

SA Followers

Ticker

SA Followers

Rank

1

AgTech

18

16

GreenGro Techs Inc

(OTCPK:GRNH)

9,922

1st

2

Biotechnology

21

18

Insys Therapeutics Inc

(INSY)

7,964

3rd

3

Consulting Services

12

11

General Cannabis Corp

(OTCQB:CANN)

8,714

2nd

4

Consumption Devices

10

8

mCig Inc

(OTCQB:MCIG)

7,567

4th

Vapor Corp

(VPCO)

5,154

6th

5

Cultivation & Retail

29

28

6

Digital News & Content

8

8

7

Hemp Products

32

29

CV Sciences Inc

(OTCQB:CVSI)

7,188

5th

8

Investing & Finance

6

6

9

Marijuana Products

9

9

10

Other Ancillary

24

23

11

Real Estate

11

11

12

Software & Technology

7

7

TOTAL

187

174

Click to enlarge

Seasonal Patterns

Again, you will see December tax loss selling and January effect seasonal patterns, in most of the five-year charts, as follows:

Firm Name

2011-12

2012-13

2013-14

2014-15

2015-16

GreenGro Techs Inc

X

General Cannabis Corp

X

X

Insys Therapeutics Inc

mCig Inc

X

CV Sciences Inc

X

Vapor Corp

X

Click to enlarge

GreenGro Technologies, Inc.

GreenGro Technologies, Inc. (OTCPK:GRNH) enjoyed a meteoric increase in price per share in early 2014 (see five-year chart, below):

A January 10, 2014 SA article predicted a 95% decline in the firm's stock price, and the above chart suggests that this prediction was a very, very good one.

This firm has a positive working capital position, but issuing shares for convertibles at bargain prices always concerns me when considering a long-term buy-and-hold for a security:

Click to enlarge

I also would pay $0.005 per share for this stock. It closed, Friday, at $0.08 per share.

General Cannabis Corp.

General Cannabis Corp. (OTCQB:CANN) also enjoyed an abrupt and impressive price-per-share increase in early 2014 (see five-year chart, below):

Note that an additional, though far less significant, seasonal spike occurred in early 2015.

An April 2014 SA article addressed the Securities and Exchange Commission trading suspension. A trading suspension by this regulatory agency is never a good sign, and those considering a long-term buy-and-hold for these securities should re-think these positions.

Insys Therapeutics, Inc.

Insys Therapeutics, Inc. (NASDAQ:INSY) does not have the December tax loss selling and January effect seasonal patterns (see five-year chart, below), but is also not a "penny" stock. December tax loss selling and January effect seasonal patterns tend to be more significant for stocks trading below $5.

Insys Therapeutics is a real company with positive working capital and earnings. I am not a buyer, but not because I am concerned that the firm is not well-managed or a fraud. With a single exception, I simply find other stocks more interesting, outside of the marijuana sector. Certainly, if you consider this to be a marijuana stock, it is a "star."

mCig, Inc.

mCig, Inc. (OTCQB:MCIG) has a bit of a 2013-2014 December tax loss selling and January effect seasonal pattern (see five-year chart, below):

mCig has a positive working capital position and is generating positive cash flows from operations for the most recent quarter ending July 31, 2016. The firm's stock price has more than tripled in the past month:

A September SA article provides some warranted considerations and cautions long-term investors, but this stock may benefit from the November election decriminalization measures on this year's state ballots. This looks like a "trading" stock to me, and I would not hold it past November 8, 2016.

CV Sciences, Inc.

CV Sciences, Inc. (OTCQB:CVSI) enjoyed a meteoric increase in price per share in early 2014 (see five-year chart, below):

CV Sciences has never recovered from its 2014 all-time high. It has a positive working capital position, and I recommend reading Dallas Salazar's SA articles on this firm. The stock price has doubled over the past month:

Vapor Corp.

Vapor Corp. (NASDAQ:VPCO) enjoyed a significant spike in price per share in early 2013 (see five-year chart, below):

The early 2013 stock price spike (above) and stock split history (below) really grabbed my attention on this one:

Vapor has a negative working capital position and declining revenues.

Summary

The latest financials for each of the n=6 marijuana stocks listed in this article follows:

GreenGro Tech [June 30, 2016]

General Cannabis [June 30, 2016]

Insys Therapeutics [June 30, 2016]

mCig [July 31, 2016]

CV Sciences [June 30, 2016]

Vapor [June 30, 2016]

None of the n=6 marijuana stocks addressed in this article look like long-term buy-and-hold stocks to me. Price per share has declined below multi-year highs and looks unlikely to recover in any sustainable fashion.

If you are holding these stocks, I would probably continue to hold them until November 8.

Again, I might be inclined to nibble a few, anticipating positive November 8, 2016, election results for decriminalization ballot measures, but I would also be inclined to sell on or before mid-November if the November 8th upside reaction appears to represent an "over-reaction." Then, rotate back into the sector, but only after December tax-loss selling and in anticipation of some level of January effect-based stock price recovery.

APPENDIX

Marijuana firms and selected data addressed in my earlier SA article

MJIC

< 10,000

> 10,000

Number of

Sector

Universe

SA Followers

SA Followers

Ticker

SA Followers

Rank

1

AgTech

18

17

Growlife Inc

(OTCPK:PHOT)

33,895

2nd

2

Biotechnology

21

19

Cannabis Science Inc

(OTCPK:CBIS)

20,509

3rd

PharmaCyte Biotech Inc

(OTCQB:PMCB)

10,302

7th

3

Consulting Services

12

12

4

Consumption Devices

10

10

5

Cultivation & Retail

29

28

Terra Tech Corp.

(OTCQX:TRTC)

15,220

4th

6

Digital News & Content

8

8

7

Hemp Products

32

30

Medical Marijuana Inc

(OTCPK:MJNA)

36,174

1st

Medbox Inc/Notis Global Inc

(OTCPK:NGBL)

12,398

5th

8

Investing & Finance

6

6

9

Marijuana Products

9

9

10

Other Ancillary

24

23

American Green Inc

(OTCPK:ERBB)

12,178

6th

11

Real Estate

11

11

12

Software & Technology

7

7

TOTAL

187

180

Click to enlarge

Seasonal patterns from earlier SA article, included for comparison

Firm Name

2011-12

2012-13

2013-14

2014-15

2015-16

Medical Marijuana

X

X

Growlife

X

Cannabis Science

X

X

X

Terra Tech

X

X

Medbox/Notis Global

American Green

X

PharmaCyte Biotech

X

Click to enlarge

Disclosure: I am/we are long BLOZF.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.