Pot-Related Stocks Looking for New Highs

Posted On August 28, 2014 | by AllenCaron
Photo courtesy of modernfarmer.com

Photo courtesy of modernfarmer.com

This post should probably wait until April 20, the famous “4/20” heralded by pot smokers worldwide. But who knows how vast the proliferation of publicly-traded, marijuana-related companies will be by then. With the legalization of marijuana now official in two states, perhaps growing in upcoming elections, and medical marijuana legalized in many more, the farming of pot and the production of related farming and smoking tools has indeed become a niche industry.

Most of the publicly-traded companies in this industry are tiny nano-caps with so little history that there is little for investors to research. Nonetheless, we randomly picked three of the larger companies in some way related to the pot industry last February—right after a huge January rally had lifted almost the entire marijuana space. Let’s take a look at where they are today.

Boulder, CO-based AeroGrow International, Inc (OTCMKTS: AERO)  develops and sells indoor, dirt-free hydroponic gardening systems for consumers. These systems use sponges and aerated water to provide a way for plants to grow.   On Aug. 11 AERO reported first quarter results showing revenues up 50 percent and retail channel revenues up 273 percent over 2013 “reflecting significant increases at Amazon.com, and new sales at Sam’s Clubs and The Home Depot,” said President and CEO J. Michael Wolfe. AERO closed February 14 at $7.39 with a market cap of $42.81 million. AERO closed Aug. 27 at$4.95, no change for the day, with a market cap of $32.35 million. Its 52-week trading range is $1.81 – $10.45.

Cannabis Science Inc (OTCMKTS: CBIS) , based in Colorado Springs, CO, was part of the January rally around marijuana stocks. CBIS develops, produces and commercializes phytocannabinoid-based pharmaceutical projects to autism, blood pressure, cancer and its side effects and other illnesses. Just this week the company announced that it is “testing toxicity and efficacy of cannabinoid formulations for neurobehavioral diseases including sleep disorders.” CBIS closed February 17 at $0.183 with a market cap of $139.25 million. It closed Aug. 27 at $0.07, no change for the day with a market cap of $63 million. Its 52-week trading range is $0.03 – $0.30.

Belleview, WA-based mCig Inc (OTCBB: MCIG) is a small cap stock focusing on decriminalization of marijuana and consumer adoption of electronic vaporizing cigarettes (eCigs).  The company recently announced a new eCig product, the VitaCig, which contains water, minerals and vitamins, but no nicotine, to help smokers kick the habit. On Aug. 12 the company announced that Jonathan Cheban, star of “Keepin Up with the Kardashians,” had joined the mCig team as an ambassador and public relations consultant. MCIG closed February 17 at $0.331 with a market cap of $89.4 million. It closed Aug. 27 at $0.35, down 1 cent for the day, with a market cap of $94.55 million. Its 52-week trading range is $0.04 – $0.92

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