Marijuana stocks are getting high from the anticipation that nine states could legalize marijuana for either recreational or medical use next week via ballot measures.
The value of stocks on the Marijuana Index, which tracks leading marijuana and hemp stocks, have nearly doubled over the last 45 days, according to Forbes. Some stocks have quadrupled in value over the past month. American Cannabis Co. Inc. is one of the top performers on the index and shows a 188-percent increase in value, which was measured over the last month.
Dan Nicholls, Vice President of the Marijuana Index said, “The average volume was 8x higher in October than January through September of this year. It is really pushing prices to crazy heights. There are more than 200 plus marijuana stocks, but we only track the top performers. The overwhelming majority are pretty low quality. There’s a lot of pump and dump.”
Alan Brochstein of 420 Investor also noticed increases in marijuana stock. He said, “Since September, my subscribers have increased by a third and my page views for New Cannabis Ventures have experienced a 40% increase over the previous month. If one buys into the premise that there will be an election trade, the question becomes which stock to buy. This has always been a tough call.”
Brochstein suggests investing in GW Pharmaceuticals and Terra Tech Corp. He speculates that Terra Tech Corp. may be the best investment if recreational marijuana initiatives pass next week in both California and Nevada.
Adam Bierman of MedMen, a marijuana industry consulting firm, said, “Are people making longer plays? Yes. It’s not just about the pink sheet over-the-counter marijuana stocks. It’s about GW Pharmaceuticals or The Scotts Miracle-Gro Company. If you look at Scotts, it has been a home run stock over the last few months.”
Many people believe that marijuana stocks are just getting started and make for a great investment.