Carlsbad, CA / March 11, 2014 / The Marijuana Index, or MJX Marijuana Index - the first and only equity tracking index for marijuana stocks, cannabis stocks, and hemp stocks featuring dynamic financial content - experienced a turbulent week between March 3rd and March 7th as several stocks faced unprecedented interest, while others succumbed to selling pressure and possible profit taking (a credit to Alan Brochstein again, who has done a tremendous job with daily updates for the investing public in this sector via "The Daily Dab," and his pay-to-play service 420 Investor).
Nevertheless, many stocks in the index are still "getting stoned," highlighted by what remains the top featured article on micro-cap investor favorite SmallCapNetwork.com's home page: "Small Cap Marijuana News: The Marijuana Index Gets Stoned." In a week where another article from The Marijuana Index appeared to be one of the top articles on search giant Yahoo.com at one point... The interest of the public and investment community in the index and overall marijuana market is apparent.
It will be interesting to watch as Washington's legalization takes effect, followed by other states like Alaska pushing for similar changes to seemingly archaic laws. The index expects multiple "micro-bubbles," where trading activity and stock prices experience subsequent peaks and valleys overall - with dramatic changes at any given point. The Bulls and Bears are likely to both be vindicated, depending on what day you pull up the index.
The Marijuana Index has several major updates pending, some of which could ripple throughout mainstream and financial media (are you reading this Jim Cramer?). Details are confidential at this time, but all readers are urged to sign-up for (free) updates on the index homepage at http://www.marijuanaindex.org/. Investors, observers, or media who follow the marijuana industry and index must sign-up for e-mails or wait for future press releases and articles, as no information will be provided via inbound inquiry to the website (unless you are looking to advertise, then you will get some information on advertising).
Results from a recent survey conducted by the index illustrate an overwhelming interest for a fund which in some way would track The Marijuana Index or stocks within the sector in general. As expected, a staggering 97.19% of survey respondents (as of March 9th) maintain at least some level of interest in such a fund, with an overwhelming majority of 76.69% being "extremely interested." Detailed by industry media leader and network partner Cannabis Financial Network, we appear to be at a tipping point in mainstream acceptance of marijuana.
Any future fund could signify another wave of advancement in a marijuana stock market facing growing interest, regulation, and mainstream "approval." Illustrating the current but expanding microcosm of marijuana stocks: the only national exchange listed security currently listed in The Marijuana Index is GW Pharmaceuticals (NASDAQ: GWPH). GW Pharmaceuticals was one company highlighted in a recent article by Minyanville founder Todd Harrison: Marijuana Will Be the Single Best Investment Idea of the Next Decade. The 20-year Wall Street veteran's interview also wisely predicts ebbs and flows in the industry, where a 10-year horizon exists with tremendous opportunity but not without "potholes, false starts, and a lot of risk." A very fair assessment, particularly as it pertains to potholes.
One thing to track as marijuana enters uncharted financial waters is the potential role of cash-rich companies on major exchanges who could enact consolidation plans -- or even IPOs, which have faced a recent resurgence (especially in the technology sector with NASDAQ: TWTR being a prime example). As legislation changes, its not entirely difficult to envision a major IPO involving a company dedicated solely to marijuana. While some are skeptical as to whether an agricultural product could consistently achieve high margins the way marijuana does, those who either medicate, indulge, or understand the value of small-batch wine or spirits recognize what Stephen King said: "marijuana should not only be legal, it should be a cottage industry." Even if (when?) big tobacco comes knocking with bags of cash in hand, most realize that there is no replacement for the wares of a master grower, and there will always be a market for top quality product that isn't mass produced.
The Marijuana Index intends to track everything as it happens for investors, observers, and media -- visit http://www.marijuanaindex.org/ for more information and to sign-up for free updates.
READ FULL RELEASE - Includes Future "Tier" System & Forthcoming Marijuana Documentary
Understated Interest in Marijuana Stocks
Consider for a moment that, as of Friday March 7th, OTC Markets showed 3,181 securities listed on the various tiers therein (OTCQX, OTCQB, PINK). OTC Markets further details that, within those 3,181 securities, $851 million in dollar volume traded on Friday (with approximately 5.6 billion shares exchanging hands).
Now imagine the reality that, with $851 million in aggregate trading dollar volume on Friday (usually a light trading day) -- roughly $102,883,226 traded within a mere thirty-five issuers on OTC Markets that are listed on The Marijuana Index. To recap, The Marijuana Index represents about 1% of companies on OTC Markets and accounted for roughly 12% of the total dollar volume of all industries combined. Its no wonder MarijuanaIndex.org has exponential increases in traffic and advertiser interest.
While FINRA was right to caution investors about some OTC companies and the possibility of fraud (inherent within any speculative stock, maybe moreso in a bull market like this), the relevance of retail liquidity and investor interest can't be underestimated. It would appear the investing public is absolutely honed in, hoping that some "green rush" issuers eventually make it to the big leagues of NASDAQ, AMEX, or NYSE where true buy-side and sell-side analysts can throw their respective two-cents in, and where company valuation is ideally expressed in revenues or earnings, not just potential. Speaking of valuation based upon potential, surely everyone was paying attention to Facebook's (NASDAQ:FB) acquisition of WhatsApp for $19 billion. Oh, the places you can go on the "big boards."
UPDATE: Medbox (OTC: MDBX) issued a shareholder update today including future plans to pursue an uplisting in late 2014, along with multiple new initiatives to improve transparency, including the filing of Form 10 with the SEC.
Even the aforementioned fast-talking mainstream financial guru Jim Cramer is entering the fold of cannabis coverage, where he intimated that he may cover the sector from time-to-time. Imagine a day when The Marijuana Index is covered by Jim Cramer and other prominent financial media on a regular basis, possibly in the same breath as other more established indices. It could happen, just like big cable networks will probably allow marijuana advertisements some day (or maybe companies like MarijuanaDoctors.com will think of new ways to get more than they bargained for in free publicity, even if the ads don't run!)
Though obviously not mutually exclusive, companies who learn to leverage their relative high valuation and liquidity for revenue-producing acquisitions or capital raises could position for long-term success. Bigger deals such as the $101.1 million (gross) closing of NASDAQ listed ADSs in GW Pharmaceuticals at $36 (NASDAQ: GWPH) illustrate the capacity and comfort for future deals in the space. If you were to ask bankers with Morgan Stanley & Co., Cowen and Cowen Company, Piper Jaffray & Co. and Cannaccord Genuity five years ago if they thought about executing a $100 million raise for a cannabinoid therapeutic company... One might imagine their response at the time.
Click below to finish reading this press release and article at the index website.
READ FULL RELEASE - Includes Future "Tier" System & Forthcoming Marijuana Documentary
About The Marijuana Index
Network partners of marijuana media leaders Cannabis Financial Network (http://www.cannabisfn.com/), The Marijuana Index is the first and only registered equity tracking index for marijuana stocks, cannabis stocks, and hemp stocks – providing investors and listed companies with dynamic market data and streaming content. Currently detailing more than thirty publicly traded issuers, The Marijuana Index provides marijuana investors and interested observers with a medium for research, charts, and a centralized news source. Readers are urged to visit http://www.marijuanaindex.org/ for up-to-date information and to sign up for updates. Follow The Marijuana Index on Twitter @MarijuanaIndex.
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