Replies to post #12 on POT & MMJ sub, trip or rumor plays!

[On2_addict]

Great post mcvaugha....Made it a sticky if okay with you.

[paperperson]

Good post on the pot stocks!!

i appreciate this honest attempt to share information on an emerging field that is very important to me as a speculator! thanks!

here are a few thoughts amplifying what was said feb. 1.

it is very important for the speculator to discriminate between penny stocks, which have hundreds of millions, sometimes more thn a billion, shares outstanding, and microcaps, which MAY BE SELLING FOR PENNIES but have a reasonable number of shares outstanding and therfore have true leverage on an emerging market.
Medbox is a microcap. so is terratech. MJNA and CBIS are penny stocks. Always look at shares outstanding. i must know the market capitalization and make some rough attempt to compare it with where the company is in its approach to the marketplace, in order to assess my interest.

for exmple, in the field of hemp derivatives, by this measure,MJNA is way overpriced and has little upside. even if the info is not exact, it is easy enough to find out shares outstanding. just type in the name of the stock and shares outstanding on google search.

here we see MJNA with 600 mm shs.

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=MJNA


here we see xchc with 36 mm shares.

http://www.bloomberg.com/quote/XCHC:US

both need to raise money. which one is a v.c. gonna go with based on his own potential leverage???

not saying xchc is perfect. their auditor quit, which was discreetly buried in an 8k, based on the fact that CBIS made too much of a sweetheart deal when it sold the dupetit natural products deal to XCHC. remains to be seen if this gets bad or just goes away. for me it ws a reason to lighten up on xchc and wait for more of a selloff. did that thursdy and friday.


assuming no lawsuit, xchc is way underpriced since there are only 36 mm shares. mjna at 30 cents, is overpriced becaus it is market cap $180 mm without a dime in revenue.

moving along, i hv been putting some mjna and xchc profits back into TRTC. WHY?

terra tech has gone further than just grow op, its original operating unit.

they are in the process of buying new jersey greenhouse operation. the company run by the vande vrede family grows and markets veggies and flowers to grocery stores in the northeast. besides the immediate cash flow i believe TRTC wants in on this biz because it will eventually prove to be a perfect place to grow cannabis in hydroponic greenhouse setting and distribute throughout the northeast. New jersey is already a medical marijuana state.

as the market is gradually made aware of this strategic advantage, this will become a fantastic stock to own. right now, it is just a pot stock that is for some reason buying into the veggie biz. perfect time to buy.