In a time where Bob Marley and Tommy Chong are producing their own brands of medical/recreational marijuana, the industry is booming with progress. More states have come on board the legal marijuana money train and even more are beginning to put legislation plans in place to push through some kind of bill come the next election period. Despite these great strides for a new industry explosion (for lack of better term), the sector, in almost its entirety, saw a massive correction during the early parts of the 4th quarter this year.
This past weekend, for the first time, lawmakers approved a measure to block the Justice Department from going after states where pot is legal for health reasons. Congress may have tried to stop residents of the nation's capital from being able to spark up a joint without legal consequences, but lawmakers pulled back last week in another important drug-war front: medical marijuana. The bill, which approved $1 trillion in spending, included a plan to prohibit the Justice Department from spending any money to enforce a federal ban on growing or selling marijuana in the 32 states that have moved to legalize it for medical use. Amidst this huge shift from Congress, several stocks in the marijuana market have found themselves hitting new "highs" for December.
Totally Hemp Crazy Inc. (THCZ) has been fairly dormant as it pertains to news, until recent weeks. Back in August the company announced that it would be engaging Rhino Marketing Worldwide to handle the company's global marketing and launch strategy for their range of Hemp based beverage products. Rhino Marketing has worked on major international product launches and fast moving consumer retail products such as Wolfgang Puck Iced Coffee, Nissan, Stryker Orthopedics and the National Football League. Red Bull is also on Rhino's track record and it would make a lot of sense for a company focused on beverage products (including a hemp infused energy beverage) to employ the skills of a seasoned and experienced marketing team such as that of Rhino.
In recent weeks, THCZ has announced that upon completion of the pilot markets, the retail rollout will go nationwide with the expectation that the cans will be produced and ready to be shipped to the bottling company by January. Furthermore, the company is already planning the launch of a secondary product line: wine based alcoholic beverages; these will have a target launch of mid-spring 2015.
Over the week of trading, Totally Hemp Crazy shares have been increasing in price. Following a recent sell-off, the stock price hit a near ten month low of $0.0057 on Monday; this marked what looks to be the turn-around for the stock price. Since Tuesday's open, shares of THCZ have increased in value by as much as 32% at highs on Wednesday of $0.0099. There are high expectations for this company to progress as it begins to roll out its first products off of the production line and onto store shelves. The initial pilot program will target markets in Houston, Dallas, Austin and San Antonio, so if you're planning to get your hands on a can of Rocky Mountain High Hemp Energy Drink anytime soon, you'll want to book your flight the Lone Star state.
MedBox, Inc. (MDBX) has been a stock that I've covered on several occasions. Through its ups and downs in the market, this stock has always shown opportunity to take advantage of the dips in price. What started in early November has resulted in one of the stocks biggest drops in price to date. Stock price for MedBox dropped drastically last Thursday and continued through the early parts of the following week. At one point MedBox saw a low of $4.25; the lowest it's seen all year. Bargain hunters abound as shares rallied on Wednesday to highs of $7.48 before closing the day at $6.89 representing a total gain of 62% from Tuesday's low.
Through its wholly owned subsidiary, Medicine Dispensing Systems, MDBX offers its patented systems, software and consulting services to pharmacies, alternative medicine dispensaries and local governments in the U.S. MedBox also owns a subsidiary called Vaporfection International, Inc. (www.vaporfection.com), which offers a medical line of vaporizer products. These newly established subsidiaries has put the company in position to develop ancillary services tailored to the alternative medicine industry, including real estate acquisitions and subsequent lease programs to alternative medicine dispensaries and cultivation centers, and alternative medicine dispensary and cultivation management services. There has been a lack of company information during the month of December but to this point, the market momentum suggests that price may be at an undervalued position compared to previous months and could warrant this latest reversal in price.
In a similar fashion to these previously mentioned stocks, Vapor Group Inc. (OTCPK:VPOR) has also been trending at 10-month lows. From the 8th of December until recent, shares of Vapor have been trending between $0.0027 and $0.003. The company recently announced that it has begun the distribution and roll out of an exclusive private-label program for its proprietary line of high quality vaporizers to be sold in dispensaries across Colorado. Dror Svorai, President and CEO, said, "This program firmly establishes us as a leading 'vendor-of-choice' for quality vaporizer products in Colorado, and will springboard further our vaporizer sales as we roll out the program in other locations."
Since the beginning of the week shares of Vapor Group have increased by as much as 38% following Wednesday's high of $0.0047. Volume in the market has increased and a short-term double bottom chart pattern looks like it may be starting to form on the 10-day chart to suggest an undertone of a new reversal trend.
It's very hard to ignore the recent momentum that the marijuana market has begun to gain over the last year alone. What started in Colorado has spread nationwide. Even conservative states have begun to change their tune when it comes to legalization. Legal marijuana use is estimated to grow 60% in 2014 resulting in a burgeoning new industry with $2.5 billion in annual revenues. With such projected growth and expanded market share, the recent turn around in the stock prices of marijuana companies like these potentially lends a good sign to new interest coming back into one of America's biggest cash crops.