November 12, 2012

Some Medical Cannabis Stocks Soar After Election as Investors Eye New Opportunities

stocks

Shares of several publicly traded companies that serve the medical marijuana industry have surged in the wake of a watershed election that saw huge gains for the cannabis industry.

Investors pumped money into the sector after Colorado and Washington legalized cannabis for recreational use and Massachusetts passed medical marijuana legislation. Some MMJ-related stocks hit new highs and experienced record trading activity, with millions of shares changing hands vs. tens of thousands on a typical day. That’s particularly impressive given that the overall stock market plunged after the election.

The initial euphoria has subsided somewhat today, with a handful of MMJ stocks coming down a bit this morning. But the increased investor interest in cannabis bodes well for the future of the industry, which could grow by leaps and bounds over the next year. Dozens (if not hundreds) of retail marijuana stores could open up in Colorado and Washington, while nearly 200 dispensaries are on tap for new MMJ states such as Arizona and Connecticut. Given that landscape, companies that provide products, technology and services to this industry could see sustained gains on Wall Street.

Here’s a wrapup of some of the biggest movers over the past week:

(Note: Most MMJ-related stocks trade on the over-the-counter market and have miniscule share prices at this time, so they’re subject to significant swings and high volatility.)

MedBox Inc. (MDBX): One of the most promising publicly traded companies in the MMJ space, MedBox has seen its shares jump 64% over the past week. The company’s stock is currently trading at a 52-week high of around $4.75, up from $2.90 on Nov. 2. At this price, MedBox has a market cap of $52 million. Aside from the election, the company – which provides automated cannabis dispensing systems – also announced positive financial numbers for the third quarter, including record revenue of $1.3 million.

SearchCore Inc. (SRER): SearchCore – which operates a handful of media, technology and marketing MMJ companies, including WeedMaps – jumped 65% from Nov. 5 to Nov. 7 on a surge in trading volume. It’s shares have fallen a bit since then to around 44 cents but are still up 42% from their pre-election level.

GreenGro Technologies Inc. (GRNH): Shares of this hydroponics company tripled in the days after the election, rising from 3 cents a share to 9 cents on Friday, when trading volume hit a record of 11.6 million (its average trading activity is 90,000). Its shares have fallen below 7 cents today but are still up significantly from a week ago.

Cannabis Science (CBIS): MMJ pharmaceutical company Cannabis Science rocketed 80% last week to hit 9 cents a share. It is down to around 6 cents today but is still up from a week ago.

Tranzbyte Corp. (ERBB): This company, which provides support services to dispensaries and other medical cannabis businesses, has seen its shares more than double over the past week. They’re currently trading at about .7 cents a share, up from .3 cents a week ago.

Several MMJ stocks, however, have not benefited from the election-related developments, while others saw their initial gains evaporate. They include FusionPharm (FSPM), which is flat since election day and down roughly 35% from its 52-week high, and Hemp Inc. (HEMP), which is trading at the same level it did before the election. Medical Marijuana Inc. (MJNA) rose nearly 30% but is now trading below its pre-election price, while London-based GW Pharmaceuticals (GWP.L) is down 6% from a week ago.

Image source: Yahoo Finance


One Comment:

  1. How can I find medical marijuana in South-Africa?

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

Minnesota MMJ Companies Raise $30M

The two companies selected to grow and dispense medical cannabis in Minnesota have raised a [click to continue...]

Canadian MMJ Crackdown On the Way?

Medical marijuana businesses in Vancouver, British Columbia, may soon be in the city’s crosshairs. The [click to continue...]

Seed-to-Sale Tracking Trend Continues With New Mexico

seed to sale

An increasing number of states are requiring cannabis companies to track every plant from seed [click to continue...]

Oregon Catering to Cash-Carrying Cannabis Businesses

The agency in charge of overseeing Oregon’s recreational marijuana industry is planning to add a [click to continue...]

Bill Would Prevent Feds From Targeting Compliant MJ Companies

Cannabis business owners harassed by federal prosecutors despite operating legally in their respective states would [click to continue...]

Florida Medical Marijuana Measures Fizzle Out

FloridaMedicalMarijuana

An attempt to legalize medical marijuana in Florida this year via the state Legislature is [click to continue...]

Ohio Group Claims Sabotage in Legalization Efforts

An Ohio organization pushing for medical marijuana legalization in the state says a stronger, more [click to continue...]

California Industry Association Head Faces Suit to Close Dispensary

A dispensary run by the president of the California Cannabis Industry Association has come under [click to continue...]

Oregon Expects 2,000 Applicants for Recreational MJ Licenses

Oregonoutline

Oregon officials in charge of regulating the state’s up-and-coming recreational marijuana industry expect roughly 2,000 [click to continue...]

Marijuana Testing Lab Seeks $5 Million for International Expansion

One of the first commercial cannabis testing labs in the United States is seeking $5 [click to continue...]

Anti-Marijuana DEA Chief to Resign

The head of the Drug Enforcement Agency will resign next month, prompting cheers from cannabis [click to continue...]

Las Vegas Dispensary With ‘Snowball’s Chance’ Moves Forward

Vegasphoto

The owners of a planned Las Vegas dispensary held a ceremonial groundbreaking on Monday despite [click to continue...]

Another Poll Finds Strong Support for Marijuana Legalization

Yet another national poll has revealed that attitudes towards legalizing cannabis have grown more tolerant [click to continue...]

60% Plunge in Washington Recreational MJ Prices

Washington State cultivators must be hurting. The average price of a gram of retail cannabis [click to continue...]

Marijuana Business Daily