Time to Lock in Marijuana Gains? PHOT, MJNA, and HEMP in the Spotlight.
Even if you only take a passing interest in the stock market, you'll likely know that cannabis stocks like Hemp, Inc. (PINK:HEMP), Medical Marijuana Inc. (PINK:MJNA), and Growlife Inc. (OTC:PHOT) have been soaring - again - over the past three trading days. We say again, because marihuana stocks also jumped in late October/early November when pro-legalization measures (recreational as well as medicinal) were approved by voters in at last some of the states where legislation has been introduced ...approved in Colorado and Washington, to be specific. Hemp, Inc. shares, for instance, rallied 350% heading into last year's voting, while Medical Marijuana Inc. advanced 180% in just the few days before the election.
As is so often the case, though, the hype didn't last. Neither did the buying effort propping up those stocks. Growlife Inc. shares drifted back from post-voting highs of $0.06 to a low of $0.03 in late December... a 50% haircut. MJNA and HEMP lost a comparable amount of ground too. The culprit? As was noted, the hype may have whipped the market into a frenzy before early November's voting, but hype can't last indefinitely. At some point, these companies will have to produce results, and just because something is legal doesn't make it easy - or profitable - to do.
Fast forward to today. Over the past three days, Medical Marijuana shares have jumped 153%. PHOT is up 100%. Hemp, Inc. shares have gained 166%.
What new round of good news - or perhaps legislation - has been unveiled this time to rekindle the buying effort?
None.
The renewed buying effort was largely spurred by some heavy promotions, with StockGuru appearing to be the centerpiece. But, each of these companies more than supported that effort with a string of encouraging press releases before and during the stock-promotional blitz. But just to be clear, there's been no news, no legislation, and no particular catalytic event driving the recent pop. As such, now may well be the right time to lock in some gains on names like Hemp, Growlife, and Medical Marijuana.
That's not to say there's anything wrong with these companies. There's not. Indeed, Medical Marijuana Inc. just reported a record quarter, producing revenue of $5.1 million in Q4, and turning $3.39 million of it into net income. While most other companies - including Growlife and Hemp - are non-reporting pink sheet companies, it's not unreasonable to think they've done similarly now that cannabis is legalized in a couple of more states. But, triple-digit gains in three days? There's still more work to be done than that, and as is the case with all industries, some of these companies will be around a couple years from now, and some won't.
Lock in the gain, head to the sidelines, and wait for a pullback. The buying opportunity will come around again, and hopefully the next time it does it will have the stuff it needs to make it last a while.
Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
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| Date: | May 24, 2013 | |
| Price: | Free | |
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Link to Quarterly report and comment on Seeking Alpha misleading article.
The company is very stable according to the report that "Seeking Alpha" said they could not find.
As others stated the report has been released despite what Seeking Alpha says. http://bit.ly/1290BO4
Not only that, the company is doing just as they projected a month ago. They are doing great and at the same rate as they said they were.
Also they are using LEGAL CBD Hemp oil; not marijuana. This is very important to note as Hemp oil is legal in all 50 states, does NOT get you high, and has great nutritional benefit. Hemp oil is a food product NOT a drug.
Although they do have THC products they are only being sold in LEGAL and medical states. This company is dealing with products for the most part that were legal even before Colorado and Washington state legalized. Again HEMP oil is legal in all 50 states. The government has already been sued twice over this issue, by Nutiva, and both times the courts have CLEARLY ruled that HEMP Oil and Hemp products are LEGAL. They do NOT get you high.
And more and more states continue to sign on with THC, so that market share will increase as well. A bill today in the NC House today passed the committee for medical marijuana. Kentucky also introduced a bill to legalize the growing of HEMP so that legal hemp does not have to be imported.
You can consume a boatload of HEMP and you still won't get high. But it does make for a great food product. As well cancer.gov reports that CBD Hemp oil clearly is anti-tumor and showing utility in brain, breast, and bone cancers.
