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Dissecting The Marijuana Market - Possible Approach Tactics

|Includes: FSPM, MCIG, NGBL, Growlife Inc. (PHOT), PMCB

Being a first time investor, I have been researching for months on my own and have found Seeking Alpha to be a legitimate form of information. I am new to this game and would like to start off by saying that I'm more than open to any criticism, comments, and advice coming from any seasoned investor out there.

Holding out on the recent marijuana surge in the stock market has been incredibly hard to do after watching stocks like $CANV, $GWPH, and $VAPE make surprising leaps and bounds. Despite recent articles about how marijuana stocks may have rallied too far too fast, I'm not buying into this negative hype.

I want to invest in the marijuana industry because it is an industry I feel I understand and has huge potential now, and further down the road. I suffer from Crohn's disease and have experienced first hand the dynamic capabilities and power of marijuana. Pot isn't what it used to be.

Now for my investment proposal:

I have narrowed down the marijuana industry into different stock categories.

1) Research and Development

2) Facilities and organization tactics

3) Transportation and dispensing

4) Consumption

From what I have researched, it seems to be a good idea to invest in multiple forms of an industry and not just in one sole company involved in a certain field. In my opinion, among these categories above there exists some pretty well established companies. I however see myself as more of a high risk - high rewards type individual and want to invest in companies that possess a bigger upside.

Since I do not have a large initial investment capital, I was going to start off investing small ($2-3K) and holding on for about 5-10 years. The stocks I have in mind are as follows (prices as of 3/5/14 close):

Nuvilex ($NVLX) $0.42 : Research and Development

- "Live Cell Encapsulation" technology.

- Treating Pancreatic Cancer, Breast Cancer, Diabetes

FusionPharm Inc. ($FSPM) $8.70 : Facilities/Organization tactics

- Sustainable, high impact produce

- Controlled Environment Agriculture (efficient, stackable growroom designs)

GrowLife Inc. ($PHOT) $0.38 : Facilities/Organization tactics

- Owns 7 hydroponics stores around the U.S.

- Equipment and horticulture supplies such as their Photron growing system, Stealth Grow LED lighting, and SG Sensors for monitoring growroom environment.

mCig ($MCIG) $0.65 : Consumption

- Herbal electronic cigarettes hoping to reap the benefits of two major trends; electronic cigarettes and marijuana

Medbox Inc. ($MDBX) $30.70 : Transportation/Dispensing

- High security medical dispensing machines.

- Adapted with finger print biometrics

Advanced Cannabis Solutions ($CANN) $48.38 : Facilities/Organization

- Leases equipment and commercial real estate for grow facilities

- Commercial services

These are the companies I have narrowed down within my price range and that I feel have a promising outlook on the future. I've heard plenty of negative things about penny stocks but I'm still not turned off from investing in any of the above companies.

Depending on how this week turns out, I plan to invest soon and was thinking of starting out with $2-3K dispersed between $PHOT, $MCIG, and $NVLX...Or dump it all into $MDBX or $FSPM.


James Clark