Pot is hot! Colorado, which allowed the legal sales of marijuana for recreational use beginning Jan.1, is facing a severe shortage of cannabis only days after the legalization.
Initially, only licensed medical marijuana dispensaries in good standing (of which there are about 500) are eligible to apply for sales licenses. The state had approved 348 total licenses, including 136 for retail stores, 178 for cultivation facilities, 31 for product manufacturing facilities, and 3 for testing facilities.
Colorado is estimated to have generated in excess of $5 million in total marijuana sales. More than 100,000 people were believed to have bought the drug since legal sales to the general public began in Colorado, which became the first Government in the World to control and regulate marijuana, also known as Cannabis. Cannabis is a preparation of the Cannabis plant intended for use as a psychoactive drug and as medicine.
[Related -Medical Marijuana Inc (OTCMKTS:MJNA): A Look At Five Best Marijuana Stocks]
As we said above, pot is hot, but, the same can't be said about pot stocks as most of them have lost their initial gains. The reason is simple – investors don't want to hold marijuana stocks for long. As a result, purchasing stocks at a lower price and selling it higher is the currently best way to trade marijuana.
Here are a few stocks that showed extreme volatility in trading. Although, these stocks (due to their heavy volumes) also provides an opportunity to make some quick bucks given an investor times the trade correctly.
Medical Marijuana, Inc. (OTCMKTS:MJNA) is one of the most heavily traded marijuana stocks, which touched a volume of 82.7 million shares on Jan.2, the day after the legalization of cannabis sales. Since Jan.1, it gained as much as 65 percent to trade at 33 cents. But, the stock closed at 19 cents on Friday (37.3 million shares changed hands), a drop of 42 percent from its recent high.
[Related -Medical Marijuana, Inc. (MJNA): Top 6 Stocks Soar Up To 97% On Federal Breakthrough]
Cannabis Science Inc (OTCMKTS:CBIS): Colorado Springs, Colorado-based Cannabis Science closed Friday' session 21 percent lower at 12 cents at a volume of 85.7 million shares. However, the stock has surged 140 percent since Dec.31 and recorded one of its biggest volumes on Jan.9 at 152.6 million shares.
Medbox Inc (OTCMKTS:MDBX): Shares of Medbox touched a high of $93.50 on Jan.8 at a volume of 1.47 million. It ended Friday' session at $34.01, 21 percent drop from Thursday's price and 64 percent plunge from its recent highs.
Growlife Inc (OTCBB:PHOT): Carson, California-based Growlife is another stock that saw heavy trading volumes in the last three sessions. More than 118.7 million shares changed hands on Jan.10 following volumes of 191.5 million and 112.5 million on Jan.9 and 8, respectively. The stock touched a high of 47 cents on Thursday. It closed Friday's session at 22 cents, a drop of 15 percent.
MediSwipe Inc (OTCMKTS:MWIP): The company's shares are down 38 percent in the last year and is currently trading at 34 cents. Since Jan.1, the stock touched a high of 68 cents.
Hemp, Inc. (OTCMKTS:HEMP): The stock touched a high of 9 cents on Jan.9, its highest since February 2013 at a volume of 145.1 million shares. It ended Friday's session 31 percent lower at 4 cents at a volume of 116.7 million. The stock saw one of its heavily traded days on Jan.8 when 188.38 million shares changed hands.
Investors have to exercise caution while trading in marijuana stocks as most of them are penny stocks and extremely volatile in nature. Above all, it is a brand-new industry and is immature. As they are penny stocks, they aren't subject to the regulatory scrutiny or listing requirements similar to Nasdaq or New York Stock Exchange; so, one needs to have full conviction on their prospects before investing.
No comments:
Post a Comment