Surge in Advanced Cannabis Solutions a Precursor to Pot Plays Gaining Momentum Again?

Andrew Klips  |

Companies in the cannabis business in 2014 have been, as Jim Carrey says in The Mask, "Smokin’!"  Investors have been eyeing these plays as it seems more states will likely be joining the 20 states and District of Columbia in passing legislation to legalize marijuana for one use or another. Ohio, regarded by many as a key state or “gateway” to the Midwest in legalizing marijuana for medicinal purposes, is the latest state in the news with a Quinnipiac University poll showing that 87 percent of 1,370 respondents approve of legalizing medical cannabis.

There has been a bit of a pause in rising stock prices during February for several marijuana companies, as the charts take a breather after running fast in hard in the month prior. These plays often move in masses and if one can pace a breakout for others, then the wheels may be set to roll again for pot stocks. Wednesday was a strong day for many stocks in the industry, including an explosion in value by Advanced Cannabis Solutions ($CANN), which added more than $100 million to its market capitalization in the 6-1/2 hour trading session.

Unlike many other public companies in the business, Advanced Cannabis Solutions doesn’t engage in the production, sale or distribution of marijuana; the company instead offers an array of services to companies in the cannabis industry, with a particular focus on rental properties for legal growers. CANN stock, which briefly traded as low as $1.50 in December, has hit its stride with the advent of 2014, running to $23.35 in January. On Wednesday, it surged past that point with a climb to an all-time high of $36.75 before settling the day at $32.50 for 62% gains. Moreover, with 930,620 shares changing hands, the stock had its best volume day since it went public via reverse merger last year.

Other notables for the day were Fusion Pharm (FSPM) (+27.16%); Nuvilex (NVLX) (+20.18%); Plandaí Biotechnology (PLPL) (+10.64%); Growlife ($PHOT)(+13.72%); and Medbox (MDBX) (+17.48%).

After a strong month of January, Advanced Cannabis Solutions is ahead 128.1% in February.  Nuvilex has nearly matched the gains, rising 113.12%. CannaVest is up 114.6%, while Hemp has grown 60.3%. Those robust gains almost make the 26.6% rise in Growlife seem small, although it’s notable that the ancillary product company has advanced now for seven straight months.

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Looking back at an article from about one month ago to check on the performance of a small group of marijuana stock plays, I noticed CANN was inexcusably omitted from the select list.  As February winds to a close, I thought it is time to update the performance of these popular plays.

Medical Marijuana Stock Plays
Ticker End of 2013 PPS 2/26/2014 +/- in 2014
MJNA $0.155 $0.319 105.81%
PHOT $0.151 $0.395 161.59%
CBIS $0.052 $0.182 250.00%
NVLX $0.102 $0.393 285.29%
MDBX $18.26 $31.72 73.71%
CANV $28.50 $150.00 426.32%
EDXC $0.074 $0.2 170.27%
FSPM $0.48 $6.18 1,187.50%
GRNH $0.044 $0.457 938.64%
HEMP $0.0199 $0.148 643.72%
TRTC $0.135 $0.51 277.78%
MWIP $0.111 $0.358 222.52%
PLPL $0.245 $1.56 536.73%
CANN $3.25 $32.50 900.00%


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