November 12, 2012

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


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.

Denver MJ Growers Major Contributor to Rise in Energy Use

Marijuana cultivation facilities have been specifically identified as a key contributor to Denver’s increasing electric [click to continue...]

Alaska Governor Names 5 to Marijuana Control Board

Five Alaskans were appointed to a board that will craft laws governing the state’s recreational [click to continue...]

New York Could Reveal MMJ License Winners Soon


The New York Health Department may announce winners of the five medical cannabis licenses up [click to continue...]

50+ Medical Cannabis Business Applications Filed in MA

The Green Rush is back on in Massachusetts. The opening of the first medical cannabis [click to continue...]

Oregon Rec Rules Materializing, Early Sales Possible

Rules governing Oregon’s recreational marijuana market are taking shape, with state lawmakers sending two bills [click to continue...]

Rand Paul Brings in Six Figures at MJ Industry Fundraiser


Republican presidential candidate Rand Paul made a splash in Denver on Tuesday, raising an estimated [click to continue...]

Hawaii Bill Establishing Dispensaries Likely to Become Law

Dispensaries could be open in Hawaii in just over a year, as a bill establishing [click to continue...]

Second MMJ Bill Introduced in Pennsylvania Legislature

In an attempt to get around obstructionists in the state House of Representatives who have [click to continue...]

Fifth New Jersey Dispensary Given Green Light

New Jersey medical cannabis, pot dispensary and marijuana industry news

And then there were five. Dispensaries permitted in New Jersey, that is. Compassionate Sciences, Inc. [click to continue...]

Louisiana Gov Signs Medical Marijuana Bill

Louisiana Gov. Bobby Jindal has signed a bill making his state the latest in the [click to continue...]

New York Cannabis Firm Buys Oregon Utility Building for $3M

In another sign of the marijuana industry’s growing national reach, a New York-based real estate [click to continue...]

WA Moves Closer to Overhauling Marijuana Tax Structure

cannabis taxes

Washington State growers and processors would no longer pay a 25% tax on cannabis and [click to continue...]

Sole MMJ Dispensary Opens in Delaware

Delaware’s only licensed medical cannabis dispensary officially opened in the northern town of Wilmington on [click to continue...]

Canadian Cultivator Tilray to Lay Off 61 Employees

Canadian medical marijuana producer and distributor Tilray said it will lay off 61 employees as [click to continue...]

Marijuana Business Daily