Seeking Alpha

Medical Marijuana, GW Pharma rally amid Colorado euphoria; peers tumble

  • Medical Marijuana (MJNA +4.3%) is up 25% YTD on the pink sheets as investors continue making speculative bets on pot-related plays following the start of legal marijuana sales in Colorado on Jan. 1.
  • On the other hand, several peers gave back a big chunk of their recent gains today: GRNH -52.4%. AVTC -15.8%. MDBX -18.6%. HEMP -24.1%. MWIP -21.9%.
  • But GW Pharmaceuticals (GWPH +23.5%), a more established name that yesterday priced a 2.4M-share follow-on offering at $36, went in the other direction.
  • With demand outstripping expectations, Colorado is (for now) arguably seeing the marijuana equivalent of the 1970s oil crisis: Long lines, shortages, rationing, and soaring prices have become the norm for licensed dispensaries.
  • Words of caution from seasoned investors about putting money into pot plays are easy to find. Fund manager Frank Igarra: "There might be one or two that survive, but having seen crazes like this, people have been burned by them a lot. The average investor should think twice."
  • FINRA issued a warning in August about potential marijuana stock scams.
Comments (25)
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    "there's always a bull market somewhere."
    9 Jan, 05:26 PM Reply Like
  • GONJA Pro
    , contributor
    Comments (4) | Send Message
     
    Its almost time for the mother of the MJ stocks to have her turn! MJNA still hasn't taken off yet. Soon and all others will watch.
    9 Jan, 09:35 PM Reply Like
  • db313706
    , contributor
    Comments (196) | Send Message
     
    Time to double down on snack foods?
    9 Jan, 07:00 PM Reply Like
  • brewsterm5
    , contributor
    Comments (466) | Send Message
     
    I think GRNH is the way to go since it laready has it's foot in the door with the medical side of things, which is already legit. Great buying op today.
    9 Jan, 10:43 PM Reply Like
  • belgium
    , contributor
    Comments (999) | Send Message
     
    "since it laready has it's foot in the door with the medical side of things, "

     

    Do explain, because IMO still overvalued.
    10 Jan, 12:21 PM Reply Like
  • bigdaddyunc
    , contributor
    Comments (3) | Send Message
     
    Wells Fargo Bank BLOCKED MY PURCHASE of Phot yesterday. Their reason was they were blocking it and other marijuana stocks. Isn't that just wonderful that a big bank can block you from buying a publicly traded stock on the open market??
    10 Jan, 08:58 AM Reply Like
  • Jacob84
    , contributor
    Comments (8) | Send Message
     
    No. We're all their slaves until we start demanding freedom.

     

    The lady at the city utilities office the other day threatened me with a fee if I didn't make my payment that day.. Then she said "sorry, our system is down, you're gonna have to call back!" I told her I had a "systems down fee" that I would be charging the city if it wasn't back up within the day.
    10 Jan, 11:47 AM Reply Like
  • Adaminatree
    , contributor
    Comments (17) | Send Message
     
    Get out of Wells Fargo! Open up another account somewhere else that doesn't prohibit you from making the purchases you desire! Do an online search for discount brokerages that allow you to purchase weed stocks. You might use a more strategic vocabulary when you talk to other brokerages...such as "Alternative medicine dispensaries", etc.
    20 Jan, 01:13 PM Reply Like
  • Bruce Loeffert
    , contributor
    Comments (109) | Send Message
     
    Stop paying high commissions for biased advice from brokerages like Wells Fargo, Merrill Lynch and other top tier brokerage firms. You would be better served with a discount brokerage like TD Ameri-trade, E-Trade, Scott-trade or others. Then you will be in control of your portfolio and paying low transaction fees with total freedom to buy what you want.
    Regarding the Cannabis industry ... there will be a minor down turn from the euphoria experienced in the aftermath of Colorado's passing of new legalization laws. The industry will experience extensive growth in the next couple years as more and more states begin to ease their stance on the cannabis industry. When the potential taxation income on cannabis products becomes clearer to various states new laws will begin to make the prospect of legalization become a welcomed reality. Then the best situated companies will prosper as will the shareholders of those companies. Until Caveat Emptor.
    20 Jan, 04:34 PM Reply Like
  • CapeJack
    , contributor
    Comments (20) | Send Message
     
    I dumped Wells Fargo several years ago. They seemed to be getting increasingly cold and impersonal. Scottrade lets you trade what you want and is fairly priced.
    15 Feb, 05:59 AM Reply Like
  • SILVERSHARK110
    , contributor
    Comments (23) | Send Message
     
    CBIS
    10 Jan, 10:57 AM Reply Like
  • SILVERSHARK110
    , contributor
    Comments (23) | Send Message
     
    CBIS
    10 Jan, 10:57 AM Reply Like
  • HYDRO
    , contributor
    Comments (27) | Send Message
     
    There are going to be winners & losers but who is fooling who here. .This is the start of a whole new industry. Big tobacco and Alcohol are scared
    10 Jan, 04:12 PM Reply Like
  • CapeJack
    , contributor
    Comments (20) | Send Message
     
    I would be surprised if big tobacco isn't huddling in the executive suites, plotting large scale business plans and tracking which of these little whippersnappers to buy out. I don't expect to see a Bill Gates of weed.
    15 Feb, 05:58 AM Reply Like
  • agord69
    , contributor
    Comment (1) | Send Message
     
    MCIG - is up, real product, news today! Another marijuana stock
    10 Jan, 04:50 PM Reply Like
  • Big Chucker
    , contributor
    Comments (11) | Send Message
     
    They are down today basically on negative articles warning investors to sell. I don't think they know the facts that weed is here to stay and demand for their products are growing. Investors have the right to decide what risk they are willing to lose with penny stocks and don't need to lose their money over articles that most people know already. It's a shame we work hard and all our profits are taken away with a few negative articles in a matter of hours. I don't worry the pot demand will continue to grow and buying interest will continue.
    10 Jan, 04:50 PM Reply Like
  • belgium
    , contributor
    Comments (999) | Send Message
     
    I do not believe the articles deserve credit for that.

     

    There are groups of traders running prices up and then dump all together at a certain price level, while going short, hitting out all stops on the way down.

     

    The groups are switching between MJ stocks. Just look at the charts and daily volumes for the past week(s).
    10 Jan, 04:59 PM Reply Like
  • User 17411042
    , contributor
    Comment (1) | Send Message
     
    so how can you buy if the banks wont finish the transaction?
    11 Jan, 01:17 PM Reply Like
  • CapeJack
    , contributor
    Comments (20) | Send Message
     
    Change banks. Schwab, Scottrade...
    15 Feb, 05:52 AM Reply Like
  • HYDRO
    , contributor
    Comments (27) | Send Message
     
    do not deal with a bank..open a account with a TRUE broker...TD AMERTRADE....CHARLES SCHWAB..JUST GOOGLE BROKERS AND YOU CAN PICK WHO YOU WANT
    12 Jan, 10:40 AM Reply Like
  • Magic Mike
    , contributor
    Comments (2) | Send Message
     
    I started investing in January of 1975 when the DJIA was at 600. My investing record, however, is spotty. Buy and Hold is not my approach to investing. I doubt most people have the patience and discipline for this method of investing. Even if they did, they would have to had picked the right stocks. e.g. In 1975 Polaroid, Eastman Kodak and Xerox were hot stocks, where are they now! That said, I can't say I have a consistent method of investing or trading. The reason for this is that the rules of the game change without notice, knowing when they change is half the battle. How does one know this: experience and a little bit of luck. Ciao for now.
    12 Jan, 11:57 PM Reply Like
  • Magic Mike
    , contributor
    Comments (2) | Send Message
     
    I heard on CNBC last week that an ETF of medical marijuana stocks is being planned. This means Wall Street feels that there is money to be made with this investment vehicle/product.
    12 Jan, 11:58 PM Reply Like
  • kgilbert88
    , contributor
    Comment (1) | Send Message
     
    Yep. It is coming soon. check out Marijuanaindex.org. I still like buying the companies though.
    3 Apr, 01:39 AM Reply Like
  • HYDRO
    , contributor
    Comments (27) | Send Message
     
    That is true a ETF is on it's way but these companies are small enough to buy a block and hope for the best..This Industry is going to grow any way you look at it...
    13 Jan, 08:28 AM Reply Like
  • JRubio
    , contributor
    Comment (1) | Send Message
     
    I second that. ETF is being formulated because there is some serious cash to be made. Visa (V) and Master Card (MA) desperately want in but clearly don't have a clear path to credit such purchase. I bet they are still letting them slide a swipe or two. "puff puff Give" should I say.
    14 Jan, 06:47 AM Reply Like
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