3 Marijuana Stocks That Could Go Up in Smoke

DISTRICT OF COLUMBIA:  The potential to use marijuana as a treatment for various diseases has captured the attention of doctors, patients, and investors, but that doesn’t guarantee marijuana stocks will keep going higher. In fact, there are plenty of reasons why marijuana stocks could stumble. Read on to learn why our Motley Fool experts think that these marijuana stocks could see their plans go up in smoke.

Dan Caplinger: Among marijuana stocks, GW Pharmaceuticals  (NASDAQ: GWPH  ) has gotten a huge amount of publicity, in large part because of its 63% rise in 2014 on the heels of having nearly quintupled during 2013 after its initial debut. The company specializes in developing therapies based on cannabinoid compounds derived from marijuana plants, and GW Pharma has long believed that these compounds can bring positive effects in treating cancer, epilepsy, and other serious conditions.

So far, GW Pharma hasn’t had the sales success that investors will want to see from the company in the long run. That’s not surprising for a biopharmaceutical company with a healthy pipeline of promising drugs, but it does mean that GW Pharma is as yet an unproven prospect for investors. The company has ample cash to survive for a long time, so further capital raises aren’t likely to dilute shareholders in the near future. Yet until GW Pharma can verify its promising early findings — and more importantly, convince regulators that any harmful effects from compounds derived from a substance that is still classified as a Schedule 1 drug by the Drug Enforcement Agency are worth the potential benefit — the stock will have some risk of going up in smoke.

MJX Marijuana Index To Feature NYSE Distribution With 3 Unique Tickers

CALIFORNIA: MJX Marijuana Index has been acquired by MJX Ventures, through a new partnership with Interactive Data, a global leader in asset valuations, data, and index management.  According to press releases, MJX Marijuana Index will now feature three unique NYSE tickers with distribution on NYSE’s index system.

Combined with robust third-party data feeds provided by Interactive Data Corporation (IDC), including monthly adjustments for corporate actions and balancing of constituents, MJX Ventures is pleased to be entrenched as the leader in marijuana equities. NYSE distribution for the three MJX Marijuana Index tiers will provide a global platform as MJX’s “best-in-class” system is enhanced and launched in new global markets.

Significant capital and resources are being invested into the MJX infrastructure in order to build the first bona-fide stock index for the sector and a team of broadly experienced securities professionals are now aligned with the Index. Originally founded in Q1 of 2013, the MJX Marijuana Index was built with the vision to establish various funds and ETFs which would track the emerging industry. The overwhelming interest in the index has caused MJX to seek additional partners and expanded distribution to ultimately deliver the best User Experience and data delivery possible.

MJX is taking the following steps to improve the Index experience:

1) MJX is expanding the site to include three indexes: United States Reporting Companies, Non-United States Companies (solely Canadian issuers at this point) and Non-Reporting (pink sheet) Companies; MJX intends to cover every qualified cannabis stock traded throughout the world on these three platforms. This expansion is expected to be completed by September of 2014.

2) Once this expansion is completed, the United States Reporting Company Index will be quoted on the New York Stock Exchange (see below on trading in the Index). MJX may seek listing on NASDAQ’s system in 2015.

The Business of Legal Marijuana: People Are Getting Rich, Should You Get In?

NEW YORK:  The line stretched nearly around the block. To people passing by on New Year’s Day, it looked like a queue for the latest iPhone release or for tickets to a Justin Timberlake concert. Few onlookers strolling down Denver’s 16th Street Mall, the epicenter of the state capital’s tourist industry, would have guessed they were witnessing the first state-sanctioned sales of recreational marijuana in the United States.

To say that the owner of this small but opportunistically located cannabis shop appeared overjoyed would be an understatement. He was in the zone, racing up and down the line, managing crowd control, and handing out tickets that preserved customers’ spots in line — there wouldn’t have been enough room in a Whole Foods to absorb the crowd, much less in his roughly 2,500-square-foot store. [Read more…]

Marijuana Stocks Hit Highs After Colorado Legal Pot Sales

NEW YORK: Stocks of companies involved in the marijuana industry — medical or otherwise — hit fresh highs Thursday after Colorado launched the first legal US sale of recreational pot.

Investors took the huge lines outside pot retailers in Colorado as a harbinger of potential growth in the still-new industry.

With one study predicting a $10 billion a year industry by 2018, hopes are that the legalization of private cannabis use could eventually divert the fortunes reaped by illicit growers and traffickers to shareholders.

Most of the companies involved though remain small and untested, and trade on over-the-counter markets.

The biggest gain Thursday was at the well-established MediSwipe, Inc, which sells transaction processing systems to the medical industry.