Marijuana Indexes Give Up Gains - Feb 28 Report
Marijuana Index
To
me
Today at 5:40 PM
Use this area to offer a short preview of your email's content.
View this email in your browser
Marijuana Indexes Give Up Gains
Peak Pharmaceuticals’ Shares Get Earnings Boost
February 28, 2015
The MJIC Marijuana Indexes
After mounting a brief mid-week rally, the MJIC Indexes finished in the red Friday despite some nice consolidation near record levels for the Dow and S&P 500. After retaking the 300 level last week—then briefly building on those gains—the MJIC Global Composite Marijuana Index slipped 18.56 points Friday to finish at 326.60. On a positive note, that number trumped last week’s close of 319.70.
The U.S. Reporting Index managed to hold its own above the 100 mark, with little movement in the Non-Reporting Index, which continues to defend the low 90 level. Meanwhile, the Canadian Marijuana Index slipped to a 126.48 final print for the week after closing at 130.20 last Friday.
MJIC MARIJUANA INDEX - GLOBAL INDEX SERIES
Performance Data - February 27, 2015
Global Composite Index $319.70 (-27.70)
US Reporting $105.27 (-2.04) US Non Reporting $90.90 (-0.09) | Marijuana Canada $126.48 (-13.64)
Latest Index Press | Detailed Composite Quote | Index Twitter Feed
Industry Headliners
President Obama wants to treat marijuana like tobacco but not legalize it (read more)
State of the Marijuana State: How’s Colorado Doing with Legalization? (read more)
PharmaCan Announces Whistler Medical Marijuana Receives MMPR License Renewal (read more)
Four Takeaways from the CSA on the Public Disclosure of Medical Marijuana Companies (read more)
From the Trading Floor
Peak Pharmaceuticals Initial Earnings and Outlook Get Investor Love
In a development that we will no doubt see more of from a growing number of issues tracked by the MJIC Marijuana Indexes, shares of Peak Pharmaceuticals, Inc. (OTC:PKPH) took flight in the wake of its maiden Q4 earnings release.
Last March the company began production of over-the-counter cannabinoid products for animals, marketed under the Canna-Pet™ name. Subsequently, Peak management signed a cultivation agreement with a Colorado-based hemp farm, rebranding itself to better reflect its position in the growing hemp market.
According to Peak’s Q4 earnings statement covering Oct. 16 – December 31st, the company generated $161,360 in sales, primarily from its CBD-infusedbCanna-Pet™ pet health products. That translates into an average sales volume of just over $2,100 per day. Of course those numbers won’t make you forget Purina any time soon, but they certainly show promise—especially given that gross margins weighed in at an impressive 73%.
On another bullish note, management recently said that order volumes for Q1 2015 are showing strong growth, and the company ultimately plans on expanding its market by offering hemp-based CBD-infused products to humans—slated for introduction later this year. Additionally, two days ago, the company announced that it had contracted with an FDA-compliant manufacturing facility to scale up production of the Canna-Pet lines.
Market participants looked past the company’s Q4 bottom line this week—which weighed in at a loss of $815,000—greeting PKPH’s earnings and outlook with renewed enthusiasm. PKPH shares ended Friday at $0.52, up from a Monday close of $0.19, after trading as high as $0.75. Some solid, rising trading volume was involved in the move as well, suggesting there might be more buyers waiting in the wings.
According to E-Trade, PKPH has a 44.6 million share float—relatively small compared to many of the cannabis-related issues trading over-the counter. The stock has traded in a 52-week range of $0.10 - $3.33.
From the Headlines
Alaska Becomes Third State in the Union to Implement Legal Cannabis
This past Tuesday Alaska became the third U.S. state to legalize marijuana. As of Tuesday adult Alaskans can possess, use, transport, grow and donate marijuana without any threat of penalties. A second phase of the new law—the creation of a regulated and taxed marijuana market—won’t go into effect for at least another year.
For Bill Parker, 70, a retired deputy commissioner from the Alaskan corrections department, Tuesday marked the end of a 43-year battle. In 1972, Parker and a group of young Democrats elected to the state House of Representatives introduced a legalization bill in 1972. It didn’t pass, and as the state’s politics grew more conservative any legitimate shot at legalization faded—even though a 1975 Alaska Supreme Court decision ruled that personal marijuana possession was protected under the state constitution’s right-to-privacy clause.
In 1998, Alaskan voters legalized medicinal marijuana. But over the years, state lawmakers twice criminalized any possession, leading to a murky state of quasi-legality for cannabis users in the state.
This Week’s Quick Hit
Colorado’s Cannabis Consumption By the Numbers
On Friday, Colorado's Marijuana Enforcement Division released its official 2014 numbers about marijuana and edible pot sales, the size of the industry, and testing results. Here are some of the most eye-catching:
74 tons of marijuana flower were sold in the state, roughly the size of 12 African elephants, or about 148 adult male polar bears.
19 of the 74 tons were sold as "recreational," meaning medical use was 2x greater.
Recreational users consumed vastly more edible marijuana products than medical users.
4.8 million edible marijuana products like cookies, candy bars and drinks were sold in 2014—equal to almost one per Colorado resident.
Written by: Jon Slotnick, Independent Writer for MJIC
