Seeking Alpha

117 Marijuana Stocks For Your Do Not 'Buy-And-Hold' List

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Includes: ACAN, ACGX, AERO, AGTK, AMMJ, ATTBF, AVTCQ, BLPG, BNRDF, BRDT, BTFL, CANL, CANN, CARA, CBDS, CBGI, CBIS, CCAN, CGRW, CHUM, CIIX, CNAB, CNBX, CRLRQ, CVSI, DEWM, DIGP, DSCR, EAPH, ECIGQ, EDXC, ENDO, ENRT, ERBB, ETST, FITX, FSPM, FWDG, GBHPF, GBLX, GECC, GRCU, GRCV, GRNH, GWPH, GWPRF, HEMP, MDTR, PRRE
by: Anthony Cataldo
Summary

The list of firms in the marijuana segment or sector of the economy is quite large, and likely to grow.

The marijuana sector, based on any index, is not performing well.

There remains no compelling reason to enter this segment or sector of the economy with a long-term buy-and-hold portfolio, at this point in time.

Keep “your eye on the ball” – focus on the dramatic increase in the market for “recreational” use of marijuana in the U.S. market in November 2016.

A triple in market size is likely, but more is possible – this is why investing a bit of time on research, today, could pay off, tomorrow.

Disclosure: I did purchase a bit less than 15,000 shares of CannLabs, Inc., but only for a short-term trade, and immediately placed a good til cancelled sell order. See this Seeking Alpha article, which presents a fundamentals-based position for a long-term buy-and-hold for this stock.

At N=117 marijuana stocks, more than 52% are incorporated in the state of Nevada (about 8% of the market for corporate law), only slightly more than 17% are incorporated in the state of Delaware (about 54% of the market for corporate law), and a bit more than 10% are Canadian firms accessing U.S. capital markets and the stronger U.S. dollar. Nevada is over-represented; Delaware is under-represented. A table is provided in the Appendix, at the end of this article.

The U.S. Marijuana Indexes

The MJIC Marijuana Index website has created several separate indexes, beginning in February 2015. Below is a line graphic of the 2 year U.S. index (US Reporting):

Below is a line graphic of the 2 year U.S. index (US Non-Reporting):

The above are some pretty ugly charts. There remains no compelling reason, at this point in time, to invest in this infant industry sector or segment of the economy. Note that the sector peaked in March 2014 (US Reporting) and July 2014 (US Non-Reporting), based on events and not based on any fundamentals. The next big event date is November 2016, when some large U.S. states (i.e., California, New York and maybe even Florida) are likely to have recreational marijuana legalization measures on their ballots.

A Significant Expansion of the Market - The November 2016 Ballot Measures

Below is a list of U.S. states and possessions, by percentage of the U.S. population. Washington state and Colorado represented less than 4% of the U.S. population (November 2012). The addition of Oregon, Alaska and D.C. represented a tiny addition, at less than 2% of the U.S. population (November 2014). Depending on the source you prefer to use, the U.S. market could increase from 5.58% (see below table totals) to 39.70%, and some would suggest that once Texas approves marijuana for recreational use, the entire "Bible belt" will follow (see graphic, below the following table).

U.S.

Nov-12

Nov-14

Subtotal

Nov-16

Total

California

12.17%

12.17%

12.17%

Texas

8.45%

Florida

6.24%

New York

6.19%

6.19%

6.19%

Illinois

4.04%

Pennsylvania

4.01%

Ohio

3.64%

Georgia

3.17%

North Carolina

3.12%

Michigan

3.11%

3.11%

3.11%

New Jersey

2.80%

Virginia

2.61%

Washington

2.21%

2.21%

2.21%

2.21%

Massachusetts

2.12%

2.12%

2.12%

Arizona

2.11%

2.11%

2.11%

Indiana

2.07%

Tennessee

2.05%

Missouri

1.90%

1.90%

1.90%

Maryland

1.87%

1.87%

1.87%

Wisconsin

1.81%

Minnesota

1.71%

Colorado

1.68%

1.68%

1.68%

1.68%

Alabama

1.52%

South Carolina

1.52%

Louisiana

1.46%

Kentucky

1.38%

Oregon

1.25%

1.25%

1.25%

1.25%

Oklahoma

1.22%

Puerto Rico

1.11%

Connecticut

1.13%

1.13%

1.13%

Iowa

0.97%

Mississippi

0.94%

Arkansas

0.93%

Utah

0.92%

Kansas

0.91%

Nevada

0.89%

0.89%

0.89%

New Mexico

0.65%

0.65%

0.65%

Nebraska

0.59%

West Virginia

0.58%

Idaho

0.51%

Hawaii

0.45%

Maine

0.42%

0.42%

0.42%

New Hampshire

0.42%

0.42%

0.42%

Rhode Island

0.33%

0.33%

0.33%

Montana

0.32%

0.32%

0.32%

Delaware

0.29%

0.29%

0.29%

South Dakota

0.27%

North Dakota

0.23%

Alaska

0.23%

0.23%

0.23%

0.23%

District of Columbia

0.21%

0.21%

0.21%

0.21%

Vermont

0.20%

0.20%

0.20%

Wyoming

0.18%

Guam

0.06%

U.S. Virgin Islands

0.04%

American Samoa

0.02%

Northern Mariana Islands

0.02%

The Fifty States

98.48%

Fifty States + D.C.

98.67%

Total U.S. territory

100.00%

3.89%

1.69%

5.58%

34.12%

39.70%

Sources: here and here

The "Bible belt," as operationally defined by some, follows:

Summary

This installment increases the watch list of marijuana stocks from N=99 to N=117. I continue to seek additional tickers that should be included. Long-term strategic implications for the November 2016 ballot measures likely to lead to legal recreational use of marijuana have been addressed, in the context of the relatively tiny percentages of the U.S. population already entitled to recreational use of marijuana. The floodgates may be ready to break, in a year or so, so doing a little bit of homework, now, could pay off, later.

Appendix: N=117 Marijuana Stocks

Below is my updated listing of N=117 marijuana stocks with name, ticker, and state or jurisdiction of incorporation (NV=Nevada; DE=Delaware; and CAN=Canada):

Name

Ticker

NV

DE

CAN

Americann, Inc.

(ACANE)

0

1

0

Alliance Creative Group, Inc.

(OTCPK:ACGX)

1

0

0

Acology, Inc.

(ACOL)

0

0

0

Aerogrow International, Inc.

(OTCQB:AERO)

1

0

0

Agritek Holdings, Inc.

(OTCPK:AGTK)

0

1

0

American Cannabis Company, Inc.

(OTCQB:AMMJ)

0

1

0

Abattis Bioceuticals Corp.

(OTCQB:ATTBF)

0

0

1

AVT, Inc.

(AVTC)

1

0

0

Bayport International Holdings, Inc.

(OTCPK:BAYP)

1

0

0

Blue Line Protection Group, Inc.

(OTCPK:BLPG)

1

0

0

Bedrocan Cannabis Corp.

(OTC:BNRDF)

0

0

1

BreedIT Corp.

(OTCQB:BRDT)

0

1

0

Monarch America, Inc.

(OTCPK:BTFL)

1

0

0

Cannabis-Rx, Inc.

(CANA)

0

1

0

CannLabs, Inc.

SDSP/(OTCPK:CANL)

0

1

0

Advanced Cannabis Solutions, Inc.

(OTCQX:CANN)

0

0

0

CannaVest Corp.

(CANV)

0

1

0

Cara Therapeutics, Inc.

(NASDAQ:CARA)

0

1

0

Cannabis Sativa, Inc.

(OTCQB:CBDS)

1

0

0

Cannabusiness Group, Inc.

(OTC:CBGI)

1

0

0

Cannabis Science, Inc.

(OTCPK:CBIS)

1

0

0

Canadian Cannabis Corp.

(OTCPK:CCAN)

0

1

0

Cannagrow Holdings, Inc.

(OTCPK:CGRW)

0

1

0

Chuma Holdings, Inc.

(OTC:CHUM)

1

0

0

Chineseinvestors.com, Inc.

(OTCQB:CIIX)

0

0

0

United Cannabis Corporation

(OTCQB:CNAB)

0

0

0

Cannabics Pharmaceuticals, Inc.

(OTCQB:CNBX)

1

0

0

Crailar Technologies, Inc.

(CRLRF)

0

0

1

Peak Pharmaceuticals, Inc.

(CTCO)

1

0

0

Dewmar International BMC, Inc.

(OTCPK:DEWM)

1

0

0

Digipath, Inc.

(OTCQB:DIGP)

1

0

0

Discovery Minerals, Ltd.

(OTCPK:DSCR)

1

0

0

Easton Pharmaceuticals, Inc.

(OTCPK:EAPH)

0

0

0

Electronic Cigarettes International Group, Ltd.

(ECIG)

1

0

0

ENDEXX Corp.

(OTCPK:EDXC)

1

0

0

Endocan Corp.

(OTCPK:ENDO)

1

0

0

Enertopia Corp.

(OTCQB:ENRT)

1

0

0

American Green, Inc.

(OTCPK:ERBB)

1

0

0

Earth Science Tech, Inc.

(OTCQB:ETST)

1

0

0

Creative Edge Nutrition, Inc.

(OTC:FITX)

1

0

0

Fusion Pharm, Inc.

(OTC:FSPM)

1

0

0

Full Circle Capital Corp.

(FULL)

0

0

0

FutureWorld Corp.

(OTCPK:FWDG)

0

1

0

Global Hemp Group, Inc.

(OTCPK:GBHPF)

0

0

1

Growblox Sciences, Inc.

(OTCQB:GBLX)

0

1

0

Gala Global, Inc.

(GLAG)

1

0

0

Green Cures & Botanical Distribution, Inc.

(OTCPK:GRCU)

0

0

0

Grand Capital Ventures, Inc.

(OTCPK:GRCV)

0

0

0

GreenGro Technologies, Inc.

(OTCPK:GRNH)

1

0

0

Green Tech Solutions

(OTCPK:GTSO)

0

1

0

GW Pharmaceuticals, PLC

(NASDAQ:GWPH)

0

0

0

GW Pharmaceuticals, PLC

(OTCPK:GWPRF)

0

0

0

Hemp, Inc.

(OTCPK:HEMP)

0

0

0

Highmark Marketing, Inc.

(OTC:HMKTF)

0

0

1

IMD Companies, Inc.

(OTCPK:ICBU)

0

0

0

Icon Media Holdings, Inc.

USST/(OTCPK:ICNM)

1

0

0

IJJ Corp.

(OTCPK:IJJP)

1

0

0

InMed Pharmaceuticals, Inc.

(OTCQX:IMLFF)

0

0

1

Indoor Harvest Corp.

(OTCQB:INQD)

0

0

0

INSYS Therapeutics, Inc.

(INSY)

0

1

0

Latteno Food Corp.

(OTCPK:LATF)

0

1

0

Cannabiz Mobile, Inc.

(OTCPK:LGBI)

1

0

0

Livewire Ergogenics, Inc.

(OTCPK:LVVV)

1

0

0

Lexaria Corp.

(OTCQX:LXRP)

1

0

0

Medbook World, Inc.

(OTC:MBOO)

1

0

0

mCig, Inc.

(OTCPK:MCIG)

1

0

0

Med-Cannabis Pharma, Inc.

(OTCPK:MCPI)

1

0

0

Medbox, Inc.

(MDBX)

1

0

0

Medican Enterprises, Inc.

(OTCPK:MDCN)

1

0

0

Madison Explorations, Inc.

(OTCQB:MDEX)

1

0

0

Medijane Holdings, Inc.

(MJMD)

1

0

0

MaryJane Group, Inc. (The)

(OTCPK:MJMJ)

1

0

0

Medical Marijuana, Inc.

(OTCPK:MJNA)

0

0

0

MJ Holdings, Inc.

(OTCPK:MJNE)

1

0

0

Mentor Capital, Inc.

(OTCQX:MNTR)

0

0

0

Maple Leaf Green World, Inc.

(MPEFF)

0

0

1

MyECheck, Inc.

(OTC:MYEC)

0

0

0

Mountain High Acquisition Corp.

(OTCQB:MYHI)

0

0

0

GrowPros Cannabis Ventures, Inc.

(MZRRF)

0

0

1

Novus Acquisition & Development Corp.

(OTCPK:NDEV)

1

0

0

Nhale, Inc.

(OTCPK:NHLE)

1

0

0

Nemus Bioscience, Inc.

(NMUS)

1

0

0

Inergetics, Inc.

(OTC:NRTI)

0

1

0

Neutra Corp.

(OTCQB:NTRR)

0

0

0

OrganiGram Holdings, Inc.

(OGRMF)

0

0

1

OSL Holdings, Inc.

(OTC:OSLH)

1

0

0

OXIS International, Inc.

(OTCQB:OXIS)

0

1

0

Growlife, Inc.

(OTCQB:PHOT)

0

1

0

Peak Pharmaceuticals, Inc.

(OTCPK:PKPH)

1

0

0

Plandaí Biotechnology, Inc.

(OTCPK:PLPL)

1

0

0

PharmaCyte Biotech, Inc.

NVLX/(OTCQB:PMCB)

1

0

0

Primco Management, Inc.

(OTC:PMCM)

0

1

0

Players Network, Inc.

(OTCQB:PNTV)

1

0

0

Petrotech Oil and Gas, Inc.

(OTC:PTOG)

1

0

0

Pazoo, Inc.

(OTCPK:PZOO)

1

0

0

Quasar Aerospace Industries, Inc.

(OTCPK:QASP)

0

0

0

Medical Cannabis Payment Solutions

(OTCPK:REFG)

1

0

0

Rapid Fire Marketing, Inc.

(OTCPK:RFMK)

1

0

0

Affinor Growers, Inc.

(OTCQB:RSSFF)

0

0

1

SinglePoint, Inc.

(OTCQB:SING)

1

0

0

Supreme Pharmaceuticals, Inc.

(OTCQX:SPRWF)

0

0

1

Surna, Inc.

(OTCQB:SRNA)

1

0

0

Stevia Corp.

(OTCPK:STEV)

1

0

0

Tauriga Sciences, Inc.

(OTCPK:TAUG)

0

0

0

Totally Hemp Crazy, Inc.

(THCZ)

1

0

0

Therapix Biosciences, Ltd.

(OTCQB:THXBY)

0

0

0

Terra Tech Corp.

(OTCQX:TRTC)

1

0

0

Two Rivers Water & Farming Company

(OTCQB:TURV)

0

0

0

Tweed Marijuana, Inc.

(TWMJF)

0

0

1

Indie Growers Association, Inc.

VKML/(OTCPK:UPOT)

1

0

0

U.S. Energy Initiatives Corporation, Inc.

(OTCPK:USEI)

1

0

0

Vape Holdings, Inc.

(OTCPK:VAPE)

0

1

0

Vaporin, Inc.

(NYSE:VAPO)

0

1

0

Vapor Corp.

(NASDAQ:VPCO)

1

0

0

Vapor Group, Inc.

(OTCPK:VPOR)

0

0

0

22nd Century Group, Inc.

(NYSEMKT:XXII)

1

0

0

Zoned Properties, Inc.

(OTCQX:ZDPY)

1

0

0

Totals

61

20

12

Mean

Percentage

52.1%

17.1%

10.3%

Disclosure: The author is long CANL. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.