Seeking Alpha

MMJ Entrepreneur's  Instablog

MMJ Entrepreneur
Send Message
I cover entrepreneurial topics and investing topics related to the legal medical/recreational marijuana industry.
My blog:
Weed Entrepreneur
  • Cannabis Stock MediSwipe (MWIP.OB) Continues To Surge In 2013 2 comments
    Jan 9, 2013 1:02 PM | about stocks: AGTK

    Person stacking Euro coins, close up

    MediSwipe (MWIP.OB), which we covered last month in our Weed Stock Spotlight series, has continued to impress analysts and investors alike with it's recent surge continuing at a blistering rate in 2013. First, in case you missed our last article, MediSwipe's business can be best described as:

    "A complete line of merchant services for your medical dispensary business including, Visa, MasterCard & merchant accounts, debit & credit card transaction processing, gift/loyalty card programs and POS terminals. We understand your business, and work with private banking institutions that will streamline the application process and have you accepting credit cards with 5 business days. With MediSwipe, we can tailor a transaction processing solution to meet your needs."

    As we previously discussed, MediSwipe's biggest problems in 2012 were some serious financial struggles and it was keeping their stock from gaining much traction in their goal to grow their market cap to something that caters to more investors. Not to say these financial struggles are completely behind them, but with some recent news and initiatives, they've made progress to solving them with their strategy and performance. These three announcements have caused the share price to continue it's ascent and collect over ~160% in gains since our last article on December 22, 2012, this could continue...

    Screen Shot 2013-01-09 at 12.07.43 PM

    As you can see, this stock has been on an absolute tear; if you would have purchased approximately one month ago, you could have posted over 600% in gains. It seems investors are starting to figure out that the early financial woes of this company are beginning to fade a bit with the recent announcement of $10,000,000 in sales being posted in October-November by their payment processing subsidiary, 800Commerce. They also posted another announcement that they will be transitioning their headquarters to a new location, in Birmingham, Michigan, a city that once was involved in a lawsuit in August 2012 against the Michigan Court of Appeals for not being completely "friendly" towards medical marijuana, so to speak. However, an investor must feel that this is positive news overall due to the fact that they were previously located in southern Florida, so although they may be undertaking some costs for this move and development, they are definitely better located for a better pulse of the medical marijuana community in Michigan.

    Some may consider MediSwipe, Inc. to be right within the trenches with their new headquarters being located in Michigan. As we took a look at the current continued efforts of expanding upon the legalization of medical marijuana in Michigan that was officially passed in 2008, we'd have to agree. Five cities in Michigan have already approved city laws that allow the complete decriminalization of marijuana, including recreational use, and many experts believe that this notion will spread virally to surrounding cities and eventually push Michigan to pass state laws for recreational use. High-level marijuana activists in Michigan predict that recreational use would be legalized statewide could be conservatively expected as early as 2016, but with the media craze and gradual public acceptance of medical marijuana, it could definitely be sooner. Developing business relationships and networking within the more medical marijuana friendly communities of Michigan compared to Florida should prove beneficial in the future.

    Hot off the press, MediSwipe just announced today that they have provided mobile phone support that will help increase convenience and usage among medical marijuana patients in California and Michigan, but also include a revenue stream for them:

    "MediSwipe will receive up to $20.00 as an appointment setting fee from each participating physician on the GetRx application as well as text messaging fees for prescription alerts and appointment reminders from participating physicians within regulated jurisdictions"

    The program also seems aimed at helping serve as an informational tool for patients who may be more tech-savvy but a little less knowledgeable about the in's and out's of the medical marijuana industry:

    The GetRx appointment setting tool will provide a valuable service to new patients in legal jurisdictions seeking information on how to find a certified physician to write a medicinal prescription, filing paperwork and fees with the states to receive a patient id card, and locating a reliable and recommended pharmacy or dispensary when they have an immediate medical need.

    In summary, from a cannabis stock bull standpoint, we have gleaned a couple of reasons why the stock is going up. However, the stock has been losing some steam as of late. Micro cap stocks like MediSwipe really rely on a heavy stream of good news and press releases and MediSwipe, Inc. has found that out early, pumping out releases with every positive morsel of information. Naturally, we find this is definitely a good thing for investors, as every bit of information that helps to predict when the big moves within the medical marijuana industry will occur.

    Traditionally, we like to see a bit more of a share price and market cap when picking cannabis investments for our personal portfolios but MediSwipe is really hard to ignore with such blistering growth. If we see a dip in the next 1-2 weeks followed by new 52-week highs, we could see a favorable time to initiate a buy.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: medical marijuana Stocks: AGTK
Back To MMJ Entrepreneur's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • unanimousMJ
    , contributor
    Comments (6) | Send Message
     
    I believe Mwip is about to pair with medbox! It will be kept on the down low as I'm sure the the CEO's don't want another unrealistic stock price like medbox, which still remains at an insane valuation. I'm a happy shareholder and I plan on riding this train until the stock hits the low teens. It's great to be in the market now when history is literally taking place. No one knows how to play MJ stocks because you can't compare it to the prohibition given alcohol companies already had infrastructure in place when it was relegalized. Also it is illegal to make a profit in the distribution portion of this industry so one can assume the 3rd party affiliates will rise significantly! Good luck traders
    28 Jan 2013, 02:08 AM Reply Like
  • unanimousMJ
    , contributor
    Comments (6) | Send Message
     
    I just received news that mediswipe is pairing with medbox! They are trying to be as clandestine as possible so the stock doesn't blow up to the same unreasonable levels that Medbox did last November. I'm riding this train and I plan to sell after the stock hits the early teens, which is very possible considering the markets excitement behind medbox( which is still sitting at way higher book value than is rational). Good luck fellow traders and it's good to have you supporting the growing MJ business. We are witnessing history here and it's exciting. It's such a tricky play as it is impossible to compare to the prohibition because of the infrastructure that was already set in place when alcohol was relegalized.
    28 Jan 2013, 02:08 AM Reply Like
Full index of posts »
Latest Followers

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.