Pot Stocks for 2014 (MJNA, PHOT, CBIS)
At the start of the year we reviewed the stocks you can buy that are involved in the legal and medical marijuana trade. We check back on them today and see that they are all still penny stocks. Medical Marijuana (MJNA), GrowLife (PHOT), Greengro Technologies (GRNH) and Cannabis Science (CBIS) are the only stocks we would recommend trading at this point in time.
You have to go with market cap when reviewing this line-up of pot heads. In consideration are the following Tickers: MJNA, HEMP, ERBB, PHOT, GRNH, CBIS
|Company name||Price||Mkt Cap|
|GRNH||GreenGro Tech., Inc.||0.476||71.86M|
|CBIS||Cannabis Science Inc||0.222||169.01M|
Taking 1st place with the largest market cap is Medical Marijuana (MJNA), followed by GrowLife (PHOT) then Cannabis Science (CBIS). I'm going to throw out Greengro Technologies (GRNH) as I hate penny stocks to begin with. Let's just concern ourselves with MJNA, PHOT and CBIS. All we care about is making the right investment and getting a return on our investment.
Caution: All these 'pot stocks' are very volatile and subject to 'pump and dump' scams. Please do not allocated more than 3% of your portfolio or hard earned cash toward these companies. It is not worth the risk. If you are hoping to make millions by buying these stocks you are going to lose. Don't do it.
Words of caution from seasoned investors about putting money into pot plays are easy to find. Fund manager Frank Igarra: "There might be one or two that survive, but having seen crazes like this, people have been burned by them a lot. The average investor should think twice."
MJNA has had an exciting January, with the Jan 27, 2014 close of $0.3999 being a nearly 160% increase from $0.155 close of December 31, 2013. Daily volume has increased dramatically as well, with the volume on January 28 exceeding 117 million shares, or twelve (12) percent of the outstanding shares, though the stock closed down 3.2% at $0.387.
Too much to risk and MJNA is the darling of the legal pot stocks.
SMOKE IF YOU GOT EM
Personally I would rather bet on big tobacco via Altria (MO), Reynolds American (RAI) or Lorillard Inc. (LO). MO is not going to roll over if these pot companies take off. Big money always win and that rings true for tabacco.
Of those three you have to go with the healthy expensive cigarette maker of American Spirit Reynolds American (RAI). RAI packs a 5% annual dividend yield and closed Friday at $48.76. None of those ganga stocks pay a dividend and trade over $1. I'll go with the true legal option.
NYSE: RAI - Feb 7 4:01 PM ET
Bottom line: Don't waste your time on pot stocks, you'll get smoked. Big tabacco rules this world and pays dividends, i.e. RAI, LO, MO.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- What Are Some Ugly Truths? | Altucher Confidential
- Project Veritas 4: Robert Creamer's Illegal $20,000 Foreign Wire Transfer Caught On Tape | ZeroHedge
- Leaked Memo Exposes The Ties Between Clinton Foundation Donors And Bill's "For-Profit" Activities | ZeroHedge
- Bullish Or Bearish: The Illusion Of Permanent Liquidity | ZeroHedge
- Deutsche Bank Considering Alternatives To Paying Cash Bonus | ZeroHedge
- The Fed is Literally Broadcasting That It's Going to Let Inflation Run Wild | ZeroHedge
- Never Invest In These HORRIBLE Things. Ever! | ZeroHedge
The most relevant financial news and articles from the Internets
- Drew Brees Tops the Power 100 in 2012 | BusinessWeek
- Apple's Supply-Chain Secret? Hoard Lasers | BusinessWeek
- These are the perfect sheets to have on your bed for the fall and... | Business Insider
- Tesla just made a big move to take on Uber (TSLA) | Business Insider
- Samantha Bee slams Donald Trump's pro-life comments: He's 'confused abortions with bear... | Business Insider
- Here's how the next president could work with Congress to fix... | Business Insider
- This electric cart gives humans the strength to pull an entire semi truck | Business Insider