One almost has to feel sorry for old school small cap marijuana stocks like Medical Marijuana Inc (OTCMKTS: MJNA), Cannabis Science Inc (OTCMKTS: CBIS) and Hemp Inc (OTCMKTS: HEMP) which have been around awhile and increasingly have to contend with the marijuana newswires getting flooded with news from every small cap OTC stock along with your mother's uncle's fifth cousin trying to grab a piece of the marijuana hype. We alone had two specific articles (Small Cap Marijuana Stocks Aiming for a High With News: MCIG, FRTD & SKTO and Four Marijuana Small Caps Giving Investors Highs or Lows: ENRT, VMGI, NVLX & RTXBQ) covering about half a dozen different wannabe marijuana stocks with news for just this week along with another article (Putting My Call on Latteno Food in Perspective, Take-Two (LATF, MJNA, ERBB)) about another small cap that's infusing food with weed.
Even if you aren't a pot head or an investor looking to score a quick high by investing in something pot related, you have to admit though that small cap investor relations people, PR professionals or professional pumpers/promoters are very clever at finding a way to tie every small cap to some aspect of the marijuana industry (e.g. investing in real estate, apps, payment processing systems, media services etc for the sector), but here's some small cap marijuana news that might be more useful to you as an investor or trader:
The Marijuana Index is Really Getting Stoned. The Marijuana Index, which is the first and only registered equity tracking index for marijuana stocks, cannabis stocks and hemp stocks, experienced significant volume and price fluctuations throughout the month of February when is started the month at the $25 level only to close the month at $56.21 for a 125% gain as some marijuana stocks experienced all time highs. Notable gainers included Abattis Bioceuticals (OTCMKTS: ATTBF) being up 194%, Advanced Cannabis Solutions (OTCQB: CANN) being up 132% and CannaVest (OTCMKTS: CANV) being up 116%. You can see all of the Marijuana Index's advancers and decliners at http://www.marijuanaindex.org.
Cannabis Science Wants to Tap Into the Spanish Market. Cannabis Science, which specializes in cannabis formulation-based drug development and related consulting, has recently announced that it has been in "confidential negotiations for several months" with key but unnamed players in Spain to expand into the Spanish market to conduct cannabis research and other operations. Once the initial agreement is signed, more information will be provided. The press release from Cannabis Science noted that Spain's population is approximately 47 million and the country has a significant cannabis and hemp market. I would also add that given Spain's economy and unemployment situation where something like half of all young people can't find work, its potentially a huge market for marijuana products that can distract all of these people from their problems....
Just Say No to Pot Stocks? Kathy Kristof from the decidedly mainstream Kiplinger has written a piece to say that investors should just stay away from small cap marijuana stocks, noting that:
Consider personal computers. Although the industry soared at the outset, the top players from 30 years ago, Osborne and Commodore, are long defunct. And unlike computers, which require technical expertise and patents, the barriers to entry into the pot business are far lower.
She also pointed out that Morningstar analyst Thomas Mullarkey has said that if marijuana were legalized nationwide, it would make sense for big tobacco companies to enter the market to crush all of the small cap marijuana stocks out there.
The Best Investment Idea for the Next Decade? Todd Harrison, the CEO and founder of MInyanville, has a completely different take on marijuana. On a recent episode of the Daily Ticker, Harrison stated his belief that he thinks cannabis "will be the single best investment idea for the next ten years" but even this pot bull warned of "potholes, false starts and a lot of risk."
Dr. Sanjay Gupta Reads the Marijuana Leaves and Apologizes. Originally a critic of marijuana/cannabis and its potential benefits, Dr. Sanjay Gupta no doubt read some polls and got some prodding from his bosses at CNN (who are looking at their ratings verses those of FOX/MSNBC) when he issued the following rather groveling apology:
I have been reminded that a true and productive scientific journey involves a willingness to let go of established notions and get at the truth, even if it is uncomfortable and even it means having to say "sorry."
It is not easy to apologize and take your lumps, but this was never about me.
Dr. Sanjay Gupta continues his scientific journey and quest for ratings with the show, "Weed 2: Cannabis Madness: Dr. Sanjay Gupta Reports" on every Tuesday night apparently...
Will Marijuana Taxes Give Politicians a High? While some politicians are salivating at the prospect of a marijuana tax windfall, the Washington Post editorial board doesn't think so. They noted that over time, the tax take from legal pot probably won't live up to the hype because producers, distributors and consumers could develop into a powerful lobby opposed to taxation – just like what happened after Prohibition as excise taxes on alcohol remain "far lower than historical levels when adjusted for inflation."
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