Merrill Lynch Is Bullish On Marijuana

NEW YORK: The investment arm of Bank of America, Merrill Lynch, sent out a 45 page equity report last week focused on prospects related to marijuana.

Carefully researched, it was an interesting peek at how heavy hitters on Wall Street are starting to view the expanding industry. The document is not publicly available. It was leaked to this writer by an individual who received the report as a member and investor.

Among the pages were extensive, basic information about cannabis and the cannabinoids THC and CBD. There was also a comprehensive outline on the patchwork of state medical cannabis laws. Further within the document there was an overview of the benefits for a long list of medical conditions, some public polling and then tantalizing information about publicly traded companies already operating in the sphere.

Marijuana’s Promise Of Profit Remains Elusive (For Now)

NEW YORK: Excitement surrounding medical marijuana led to a significant run-up in GW Pharmaceuticals‘ share price earlier this year, but based on the company’s recently announced quarterly and fiscal full-year earnings results, the promise of marijuana profit remains far off in the distance.

Planning for the future

That’s because GW Pharma has only one marketed marijuana derived therapy, Sativex, on the market, and Sativex, which is used to treat multiple sclerosis spasticity, has yet to win the FDA go-ahead for use in United States. As a result, sales of Sativex, which come primarily from European markets, total just $2 million in the quarter ending June and were small enough for the full fiscal year ending September that the company didn’t bother breaking them out in its quarterly earnings press release.

Instead, the company focused the bulk of its earnings report on the promising opportunity for its marijuana-based medicine across various indications and a slate of trials spanning cancer pain, epilepsy, schizophrenia, and even diabetes.

Those trials are all ongoing, so investors will need to rely on past trial data to make judgments on whether or not the market demand for GW Pharma’s medicine will justify the company’s $1.27 billion market cap.

Money And Marijuana: Still No Action From Feds, Washington's Heck Reports

WASHINGTON:  Washington Democratic Congressman Denny Heck today issued a statement concerning financial institutions and the business of legal marijuana.

Heck’s office reported: “It has been over a year since Washington voters approved I-502. Since that time, officials in our state have worked tirelessly to uphold the will of the voters and implement this law safely and efficiently. Soon, Washington’s regulated marijuana industry will begin operations.

“The hundreds of legitimate marijuana businesses that will open in the coming months will, however, lack one of the most basic tools small businesses need: consistent access to banking and financial services. These business owners are unable to utilize these services because of federal laws and policies which have not been updated to reflect changing state laws in Washington, Colorado and around the country. [Read more…]