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Why I See AEGY As One Of The Best Marijuana-Related Investments

|Includes: Alternative Energy Partners Inc. (AEGY) if you haven't seen this website, start here.

Pharma Janes (currently known as Alternative Energy Partners, Inc.) "is engaged in providing support services for medical marijuana. The Company's Simple Prepay system was developed to offer dispensaries, collectives, and delivery services for medical cannabis. Combined with the PharmaJanes on-line and smart phone ordering platform, medical marijuana patients will be able to order, process and pay for their authorized needs. In May, 2013, the Company acquired the PharmaJanes. In May, 2013, it also acquired Simple Prepay merchant payment solution from iEquity Corp." -Reuters

The website that they're speaking of, and I posted, was launched just last week. It is still brand new, and in fact they had confirmations of their first customers receiving their orders today (2/11/14).

"We are looking forward to making steady progress in expanding our order and delivery areas and to expanding functionality and enhancing the consumer experience on the site" -Mario Barrera, CEO of AEGY. "Expansion of the service area into other parts of metropolitan Los Angeles and then into the rest of California will occur gradually over the next few weeks."

Not only is there going to be plenty of short term growth from customers across California (An estimated market of 553,684 MMJ patients in the state), but the company plans to expand across the nation as they develop.

Yes, AEGY already climbed roughly 60% from the hype of that news today, but in the long term scale this is still trading at pennies on the dollar. Actually, it's not even worth a penny yet. Closing at just $0.0093 today, picking up tens of thousands of these shares is something any investor can do.

Not only do I see AEGY climbing over the next few weeks from their service area expansion, but in the months and years to come. The weight of what happened today has not been fully realized. Today, they crossed the threshold from a "potential business" or "idea" to a real world company.

AEGY has never realized revenue (as they only acquired Pharma Janes last May), and there is obviously going to be enough of that to go around, on the next income statement. Very few of these MMJ stocks have an actual revenue, as most of them are in the R&D stages, scams in general, or have revenue from past non-marijuana involved business. AEGY is not only going to be one of the few, but by far one of the cheapest. Most of the companies that have promising futures are already trading well above a penny, closer to 10 cents or more.

AEGY is also fully reporting, an OTC QB, another luxury not always found in "pot stocks". On 1/16/2014, they had a "cease trade order" for Canadian investors. ( This sounds like terrible news, until reading farther. AEGY was not reporting in Canada because they have no business there, no employees, acquisitions, etc. However: the Alberta Securities Commission, as well as the Securities Commissions of several other provinces, has adopted a rule to the effect that any U.S. listed public company subject to the obligation to file periodic reports with the U.S. Securities and Exchange Commission and whose shares are not listed on a recognized exchange in the US, or other listed jurisdictions (i.e., only those U.S. reporting companies whose shares trade on the OTC BB, the OTC Pink Sheets or on the OTC QB) is automatically a "reporting issue" in Alberta if any officer, director, or consultant of the company is a resident of Alberta, and therefore becomes subject to quarterly and annual reporting in Alberta. This action is taken in Alberta without notice to the U.S. company, such as Registrant, and, again as in the case of Registrant, a "cease trade order" is imposed without notice, hearing, due process or other opportunity to be heard or to contest the action. Registrant has been advised by U.S. securities counsel that this action is not enforceable in the U.S. against the Registrant; however, Canadian citizens who may have acquired shares of Registrant on the open market have advised the Registrant that they are now no longer able to trade Registrant's common stock.

Is this bad news? No, it's future growth. Not only was the entire cease order put in place because of misunderstanding (one of their former directors lived in Canada, but no longer works for AEGY. This is why Canada thought they needed to report), but they are trying to get cleared. When they do get cleared, they have the added potential from all Marijuana investors in Canada.

AEGY also currently has a DTC Chill for any TD Ameritrade clients. In other words, no TD Ameritrade users can currently trade AEGY. I am unsure why this was put into place, but as a Scottrade (and TD Ameritrade) user, I am simply using Scottrade. When (and if) this chill gets lifted, they gain the investor pool from TD Ameritrade marijuana investors.

Is buying at the current price a good idea? In my opinion yes. Just a few days ago it was trading well above a penny, on less exciting news than we received today and about the future. We have already been at a higher price than we are now, and the continuing news reports are only going to help pass that envelope.

Summary: While this company is small, volatile, and they have no past revenue, there is infinite room for growth in both short, medium, and long term. Over the next few weeks they will be expanding their business across California for their website (short term). They then plan to expand to other states accordingly. They still have to officially change their name to Pharma Janes, and get trading approval in Canada (that was taken away on a misunderstanding in the first place) as well as TD Ameritrade clients. These are obstacles that will all boost share prices dramatically when hurdled (mid-term). This website they have created is the exact same idea as the illegal Silk Road marketplace that was recently eliminated, only with Marijuana/products only and it operates completely within the law. The Silk Road was boasting $22 million in annual sales, with $2 million in commissions for the owners. Are we looking at a replacement to the Silk Road? Not at all, but we are looking at the future Amazon of Marijuana in my humble opinion.

Disclosure: I am long AEGY.