Growlife Halted; Marijuana Penny Stocks Doomed

NEW YORK:  I warned you. Over and over, frankly, and consider this yet another warning. Stay away from hyped-up penny stocks, which so far this year has meant specifically staying away from the marijuana-weed-pot penny stocks, most of which even at this moment, are still up many hundreds of percent in the last year. Most of these over-the-counter weed penny stocks are just vehicles for their insiders to sell shares to retail investors caught up in the hype of the legalized marijuana revolution.

Let me explain again. I’ve repeatedly highlighted Growlife PHOT  as a poster-child for this game in which the retail investor is always the mark, and late last week, holders of PHOT woke up to news that the SEC had finally gotten off their butt and was suspending trading in this stock while they investigate the company’s stock trades “because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT’s common stock.”

I have certainly been one of those who have raised questions about the accuracy and adequacy and potentially manipulative transactions in PHOT’s common stock. I’m glad to see the investigation, even coming way too late for all those retail investors who got stuck with this now suspended stock.

 

GrowLife Wants To Be Legal Weed's Financier

CALIFORNIA:  People will soon be able to purchase marijuana legally in Colorado and Washington State. Who will get high, financially speaking, from this emerging market? One aspiring company is GrowLife (PHOT), a publicly traded business in Woodland Hills, Calif., with cheeky ticker symbol PHOT. It doesn’t actually sell pot; it caters to marijuana growers, dealing them hydroponic gardening equipment. More intriguingly, GrowLife wants to be their lender.

I talked to Rob Hunt, executive vice president of GrowLife (and his public-relations guy, Kurt Divich), about the company’s big plans and the last time he got stoned. The following transcript has been edited and condensed.

What exactly are you guys selling at GrowLife?

Rob Hunt: We sell hydroponics and organic equipment to be used in [marijuana] cultivation facilities. [Read more…]