Slip-up of investors: who legally earns on marihuana

Tuesday, 06 January 2015 12:01

A boom of business activity is developed round a narcotic plant. Why did investors pay attention to risky sector?

Bob Marley's joke with an appeal to legalization of marihuana in Jamaica only for treatment of asthma and glaucoma in 40 years became reality in the USA. Having allowed the use and storage of marihuana in the medical purposes, the USA arranged revolution in this if it is possible to say that, branches of a national economy.

A real boom of business activity began round this narcotic plant. Many companies began to grow up marihuana and to use it for production of useful and demanded by the mass consumer production. It appeared profitable business in which there is a place and for private investors.

We will take, for example, hemp cultivation. In many states it is authorized to grow up it in house conditions. For example, you can keep 12 pots with hemp in Michigan, and in Colorado only 6 — and 3 from them have to be mature, and 3 — not yet (immature), i.e. "on the way". All this demands the corresponding seeds, saplings, conditioning agents behind plants, other necessary production and services. The knowing people say that hemp cultivation — this true art. That is why the companies which specialize on this field began to appear in the USA like mushrooms after rain.

GrowLife Inc. — one of them. Till 2011 it was the unprofitable gardening company, but it curtailed on the road of cultivation of hemp and sale of the accompanying goods in time. Now the company trades not only traditional goods for cultivation of plants (by the way, not only hemp), it is also possible to buy special literature, lighting lamps for the best growth, system of a hydroponics, awnings for plants and many other things.

Stocks GrowLife Inc. are quoted in stock market, and for the last 12 months they brought to the owners about 170% of the income (hereinafter — data for June 24, 2014).

The company is small — its capitalization by the little is higher than $97 million.

Except the companies which help to grow up hemp, there’re also such which are occupied with researches and development of new drugs on its basis. English GW Pharmaceuticals Plc — the largest player on this "glade". Its capitalization exceeds $1,35 billion that to measures of other "hempy" actions ($50 million are considered quite normal indicator of capitalization here) simply huge indicator. For a year of GW Pharmaceuticals paper showed phenomenal growth — 943%. The main hit of the company is considered Sativex — special spray which is used for relief of symptoms of multiple sclerosis, pains at oncological diseases and the neuropathic of pains.

And here Medbox (USA) specializes how to make process of access to marihuana and simple and safe products from it for all needing. First of all it is about patients with chronic illnesses and suffering from pain. Makes special safes and safe deposit boxes for these purposes of Medbox (with the corresponding software), access to which is got only by the authorized people according to special maps or with use of biometric data (for example, fingerprints). Such devices can stand in clinics, drugstores, special shops and other places. Capitalization of the company makes $542 million. For the last 12 months of its action behaved not in the best way, having fallen almost to 35%. However, on opinion of experts, production of Medbox has a good perspective market and its papers remain attractive to investors.

Among the companies working at a field of use of marihuana in the "peace" purposes there are also very exotic.

For example, technological mCig offered fans of a grass a certain replacement which it considers in the way to decriminalization of the market of marihuana. These are electronic cigarettes which work at a marihuana concentrate in the form of wax or oil. Thus "raw materials" aren't burned, it heat in a cigarette to a certain temperature that allows, according to developers, to make smoking process soft, pleasant and economical. The cost of one such cigarette makes $10, and they enjoy escalating popularity. For the last year the stocks mCig grew by 296%.

The majority of the public companies earning on marihuana — are so-called penny stocks which cost doesn't exceed $5.00. Now in the American stock market more than 150 public companies connected with cultivation of marihuana and production on its basis are quoted. There is even a special index — The Marijuana Index which reflects the total movement of the prices of their actions.

There were also analysts who are ground only on "hempy" actions.

Most of experts claims that this market has a big future. According to Bloomberg, from September, 2012 to May, 2014 its capitalization grew from $500 million to $7 billion. It isn't excluded that it is only the beginning. In some years it may about tens of billions.

However this area is still very young, and there isn't a lot of "authorities" for investment (and each expert has his own). Investments are very risky. For example, the majority of actions strongly fell off in April of this year when the supervising bodies in the USA stopped trade in some of them for two weeks, being afraid of manipulations in the market and deception of investors. By the way, the GrowLife Inc company mentioned by us, was among them. As papers of this sector after intervention of the American authorities behaved, it is well visible on graphics of The Marijuana Index. It fell more than to 50%. However, for the last 12 months growth of an index made nearly 300% (without April falling this indicator could exceed a mark of 700%, and for the stocks GrowLife — 1650%).

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