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First I can only speculate. But I do think HC will take their time. We do not know the purpose of the phone call or what he wants them to get back with. But I will say this HC needs growers at this point. I believe the Government has an interest in seeing their is approval or they are going to look foolish ie we stopped the individual growers and their is not enough MJ to go around. Hence, bring in the illegal dealers, just what they hoped to avoid. Finally there have been 2 recalls of pot with bacteria. We have the best chance of approval are building is new and clean. I think within the next two weeks approval.
Agreed when we start to move the Shorts will get caught in a long term squeeze. You are correct.
Fitx contacted HC early enough that will should hear something within the next 2 weeks. I now agree Bills interview did make him sound unsure and evasive. Not a good position to be in. I believe it was just Bills's personality more then anything else. Secondly it is never a good idea to make many comments as on Facebook always the chance of slipping or being so high on the stock the shareholders get an inaccurate prospective. Overall this company is on the move and shortly if the licensed is issued which is it will be the price caused also by other news will go up.
Excellent: Next Week sounds probable, reason Christmas and January 1 did get in the way. Plus possible bad snow. Excellent Stock just the facts nothing but the facts.
Pharma Med fast Growing business
Marijuana Stock Showdown: GW Pharmaceuticals vs. Medbox
By George Budwell | More Articles | Save For Later
May 18, 2014 | Comments (1)
The legal marijuana industry is expected to become one of the fastest-growing industries of all time, as its recreational and medicinal uses are now being widely decriminalized in multiple countries and U.S. states. Investors looking to capture some of this incredible potential growth, however, have few options outside of what amount to risky penny stocks.
GW Pharmaceuticals (NASDAQ: GWPH ) and Medbox (NASDAQOTH: MDBX ) are two exceptions to this general rule, as both companies sport market caps and share prices substantially higher than most of their marijuana peers. With this in mind, let's consider which company offers the more compelling risk-to-reward ratio.
GW Pharmaceuticals uses marijuana-based compounds to develop novel medications
GW Pharmaceuticals is a British biopharma developing cannabis-based medicines for diseases such as drug-resistant childhood epilepsy, Dravet syndrome, Lennox-Gastaut syndrome, and multiple sclerosis spasticity. The company is known mainly for its multiple sclerosis treatment Sativex, which is commercially available in 11 countries. Sativex is in late-stage trials as a potential treatment for pain in patients with advanced forms of cancer, with the FDA granting the drug fast-track status for this indication earlier this year. The company hopes to report top-line data from the trial before the end of 2014.
GW also sees potential in its highly purified cannabinoid known as Epidiolex. The company hopes to develop Epidiolex as a treatment for a host of rare forms of pediatric epilepsy. To date, Epidiolex has been granted orphan drug status and is projected to begin late-stage trials as early as 2015.
Finally, GW has several other cannabinoid-based compounds undergoing clinical trials for a wide range of diseases, including type 2 diabetes and ulcerative colitis. In sum, GW offers perhaps the richest population of clinical candidates based on marijuana derivatives in the industry, making it a stock to watch.
Medbox offers a quick and easy solution to obtaining medical marijuana
Medbox makes vending machines that dispense a variety of medicines, including medical marijuana. This stock has been on one heck of a volatile ride over the past year, hitting a high of $73.90 per share before falling markedly to today's price of $18.47.
MDBX Chart
MDBX data by YCharts.
The problem quite simply was that Medbox became a poster child for momentum stocks, skyrocketing in anticipation of the legalization of marijuana in Colorado and other states. What's important to understand now is that Medbox's current share price is still valued at around 100 times 2013 revenue despite this recent dramatic downturn. Looking ahead, Medbox may require a capital raise after ending 2013 with less than $1 million in cash and cash equivalents. Medbox appears to suffer from a major valuation gap, and it's hard to see a way the company can quickly remedy this problem.
Foolish wrap-up
It's no secret that marijuana stocks have been all the rage this year, with some of these tiny companies exploding higher in a matter of weeks or even days. Nonetheless, we are starting to see Mr. Market come back to his senses somewhat regarding this speculative group of companies, evinced by Medbox's roughly 75% drop from its former high.
That being said, I think GW Pharmaceuticals is perhaps one of the few "marijuana stocks" worth considering as a long-term investment. The company has an intriguing platform that has been validated by the approval of Sativex as a treatment for multiple sclerosis spasticity and has incoming revenue from sales of the drug. Even so, GW's current valuation doesn't look cheap from a fundamental perspective, with the market clearly baking in some of the future revenue for its clinical candidates. Specifically, GW shares are trading at over 20 times 2013 revenue, making it a pretty expensive stock right now. So while GW still looks like better a pick than Medbox, I would still suggest that you wait until shares fall lower (or the pipeline develops some more) before considering a position.
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Thanks for the info.
I agree sometimes I get so in thinking and excited I do not take into account grammar. Poor way to communicate feel free to let me know.
Yes because there are law firms that if someone complains they will not only alert the Sec but bring a suit. Why, will I invested and I thought by now certain things would occurr and these are really just forwarding looking statements. Yes you see the wisdom of having the board control. Plus those entities, journalists who make false and misleading statements about fitx should also be aware of ramifications. Yes I believe you are correct and also bill now has more important things to do.
You got it. Remember he is there to make sure everything runs smooth with the Sec. Therefore all comments by any director or corporate officer should be SCREENED before they are put out. Once great analysis.
I agree with you. Bill should remember that old lawyer adage the less you say the better. Problem is bill can answer in a way that can be misinterpreted causing PR problems. Gonna miss Bill but the board may feel like I feel and voiced stock on an email re inspection, bill is a bulldog and may say the wrong thing.
Your right bill is in Europe:
Lane Wittenmyer How long are you in Europe for Bill?
17 hours ago · Like
Bill Cenergy as long or as short as needed
17 hours ago · Like · 8
Also there is something on the site about Deleted Post Problem I am sure it was nothing you wrote.
I remember what the Mayor said about buying land risk of license. That seems to be a legitimate observation. However, this company is moving forward so let's see what happens this week. I believe we are getting closer to the license date. I also hope Bill puts out other news to drive the price up. I am sure we have something, re audit and up-lists. Thanks for the posts.
Thank you for your informative insights. Yes you are right it is easy to get lost between the pumpers and the bashes. Objective analysis is what we all need. I do think we are on the right road and the articles with Chris Parry do take away the sting these articles can give. As I stated those two paragraphs are very positive. Bill is a fighter and does get contentious but lets face our foes and deal with it. When I reread the article today I was more feel way better about. It is hard to say about the license in this respect, I was not aware along with others about the building on the 25 acre farm. So bill is quiet about certain things. With Sec feelings on these stocks Parry does not want to get caught off guard by giving too many thumbs up. I am going to get back to some work but I always appreciate your posts. One penny too watch DIRV. Very effected by news. Finally I am going to look into those tablets you take because I sit to much looking on the computer.
Stock I just read Facebook and see what you got that from. Thanks for highlight this issue. Meaning where bill is.
Considering the way bill can be contentious I am glad he is not there. Bill does get ahead of himself but what company does not when they put out Guidance. If in fact Bill is in Holland it may be he feels secure with the license or has gotten some word the license may be forth coming. I have no knowledge just speculation. But I understand when HC does the inspection before the formal approval the company is told. Merely hearsay. I do believe now that Bill sees the potential he probably would not have taken the company public. Also because of the hassle with the market rules. It is your understanding Bill is in Holland?
There are two paragraphs in this article that are significant.
Last line GREAT INVESTMENT POTENTIAL.
Members of IHUB I do believe if these two continue meet in person with their attitudes, the next meeting will take place in a Madison Square Garden boxing ring for "whose the most Credible Bully."
Just joking honestly I admire Bill and Chris.
If it sounds like I’m harping about this ‘world’s largest’ business, I’ll admit I am, and here’s why: Creative Edge is a company that definitely has issues and assets. A 60k grow op, in and of itself, is nothing to sneeze at. It’s a fine step one. And the company does have a hemp play that Chabaan and I promised to get into more detail about in the weeks ahead, as I think hemp is a space that – eventually – will be massive, and Creative Edge is neck deep in it.
And Chabaan has surrounded himself with a good number of strong reputations. There’s no denying he’s got some serious people involved in various aspects of his business – the kind of people you would hope a CEO would look to in order to build a serious company with great investment potential.
I agree with that entirely. Health Canada would look like fools if they patients could not even get the MJ they need. It would look like a complaint miscalculation on their part and a complete lack of compassion for those who are suffering. Of course they would not want it known. It would also give rise to trying to complete the inspection in a few week period. Maybe a hypothesis on my part but a reasonable one I feel. The license is the company otherwise we become like the companies targeted by the SEC that are in the MJ business and have not grown one plant!!! So lets be patient realizing all investments are a risks.
Thanks for your email. I have to admit I am glad Bill had the interview. Otherwise there would have been a cover up mentality. Yes there will be issues re build out, but let's face it that takes time. I do believe we will get the license within a week and a half. Also the article pointed out are investment in hemp plus the type of people we are getting. Stock when is the trip to Germany.
This is last post today used up my 15. Will see but there are more then 15 patients. However, I think of a company that had provange. I believe it was a cholesterol drug the put up a building for 50 mil hired thousands of employees. End result closed the building and laid off the employees. Drug did not have the popularity they thought. Maybe on will be on Saturday. Thanks for your insights.
SEC Warns Investors About Pot Stock Scams
Comment Now Follow Comments
Exactly Japple
The penny stock market goes through cycles as promoters and stock peddlers back whatever investment trend is hot at a particular point of time—uranium, the Internet, oil. Without a doubt, the penny stock theme of the moment is marijuana and the Securities & Exchange Commission doesn’t like it.
The penny pot stock boom has been going on for a while, but on Friday the SEC issued an investor alert and warning about “possible scams involving marijuana-related investments” and noted that “fraudsters often exploit the latest growth industry to lure investors with the promise of high returns.”
In a limited crackdown, the SEC also temporarily halted the trading of a pot stock for the fifth time in the last two months. The SEC halted trading of Denver-based FusionPharm until May 31 because of questions regarding the accuracy of assertions made by the company and others about FusionPharm’s financial statements and condition.
“Recent changes in state laws concerning medical and recreational marijuana have created new opportunities for penny stock fraud,” Elisha Frank, co-chair of the SEC Enforcement Division’s Microcap Fraud Task Force, said in a statement. “Wherever we see incomplete or misleading disclosures, we act quickly to protect investors.”
The SEC said on Friday that it has seen an increase in the number of investor complaints regarding marijuana-related investments. The Financial Industry Regulator Authority warned investors to be on the lookout for pot stock scams last year. But despite the warnings, temporary stock halts and negative press, investors continue to flock to pot stocks that trade mostly on the Over The Counter Bulletin Board and Pink Sheets.
Dozens of companies listed on the penny stock market have turned themselves into pot stocks in recent months, either through reverse mergers or a simple name change. In general, these companies don’t actually touch marijuana, but claim to be involved in the business of providing infrastructure and services to marijuana businesses or in the business of non-psychoactive CBD oil. Trading of the shares of some of these companies has been extremely volatile. Shares of CannaVest, for example, traded for as much as $201 this year; they now change hands for $18.50. One of men who helped launch the company, a Florida physiotherapist named Stuart Titus, pocketed $7 million in stock sales this year, SEC filings show.
The SEC’s approach to the pot stock game has baffled both promoters and critics of publicly-traded companies that claim to be in the marijuana and hemp industries. Some of the claims the SEC has made against certain companies while temporarily halting their stocks have been alarming, but two weeks after the temporary halts millions of shares of those companies are changing hands again, at a much lower price, without further action by the SEC.
In April for example, the SEC temporarily halted trading in shares of GrowLife, which trade under the ticker PHOT and are among the most popularly-traded in the sector. At the time, the SEC said it was halting trading of the company’s shares because of “potentially manipulative transactions in PHOT’s common stock.” The SEC did not communicate any more information about the potentially manipulative transactions, but GrowLife CEO Sterling Scott said in a statement that SEC staff had suggested to the company that regulators halted the stock because of concerns that 3rd party holders of Growlife stock were set to engage in some form of manipulative promotional activity. “I can confirm that GrowLife was not involved in the planning of any potentially manipulative promotional activity nor does it have any knowledge of any planned 3rd party promotional activity of any kind or type, proper or improper,” Scott said at the time. Shares of GrowLife plunged when they resumed trading in late April, but tens of millions of shares of the company continue to trade daily without any further clarification or action by the SEC.
I agree but it does seem US is really a risk and should be shied away from. Japple thanks for the posts.
Totally disagree. Remember we are in Canada, however at this point dealing in the US is dangerous at this time. Like SEC warned against thinly traded stocks that create an illusion re MJ. We have a building property and a good board.
Why not this month. It would put us right on schedule.
I tend to think we have been conferring all along. Remember the layout was changed I am sure they were consulted. I think within a week and a half.
What you say is true but even with the so to speak go stocks sectors are effected. Particularly when the SEC says watch out. Remember we do not have license yet. When that occurs different story>
No doubt to many people suffer from it and it costs a lot to take care of these patients. They cannot fend for themselves or articulate their health concerns. Once again when do you think we will hear of license. I say no later then a week and a half.
The narrower the field and the more people do research the better we are. But FSPM did hurt us. No doubt. Plus people are waiting for license. When do you think we will get it?
Great Posts. The uses and the development are clearly needed. We have the means and the people. Go fitx
You know a lot. But once again no doubt the entire sector is hurt thanks Fspm. That is why we have the new board member and why we are NO.2. on Benzinga's list. Make no mistake we are very effected by what the other companies do, will end when we get license. Also article mentioned thinly traded stocks.
SEC: Just say no to pot stocks
By Ben Rooney May 16, 2014: 12:55 PM ET
SEC says penny stocks in the marijuana business are risky.
Marijuana may be legal in some states, but regulators say investors should use moderation when buying pot stocks.
The Securities and Exchange Commission issued an alert Friday about the risk of fraud in thinly-traded shares of companies involved in the legal marijuana business.
The SEC warns that "fraudsters" may be using the excitement about the boom in recreational marijuana in states where the drug has been legalized, such as Colorado, to dupe investors in penny stocks.
Related: Investors high on marijuana despite risks
"We know from experience that fraudsters follow the headlines," said Lori Schock, the official in charge of investor education at the SEC. "Given the attention that marijuana-related companies have attracted recently, we urge investors to exercise caution when looking at investments in this space."
The commission suspended trading in shares of Denver-based FusionPharm Inc. (FSPM), which makes "cultivation systems" for cannabis growers. The SEC said "questions have been raised" about the accuracy of FusionPharm's financial statements, including its revenue numbers.
The SEC has targeted five other "micro-cap" companies in the past two months that are involved in the legal weed business. It recently suspended trading in Cannabusiness Group Inc., GrowLife Inc. (PHOT), both based in California, and Advanced Cannabis Solutions Inc. in Colorado. The suspensions generally last for 10 days.
By most accounts, demand for marijuana has exploded since Colorado legalized it for non-medicinal use on New Year's Day.
Colorado expects to raise about $184 million in tax revenue from marijuana sales in the first 18 months. Washington also legalized marijuana for recreational use this year and a few other states are considering similar changes in regulation.
Related: Jobs boom in marijuana business
But the opportunities for investors are still largely limited to shares of small companies that trade over the counter, rather than on a large public exchange.
While all publicly traded companies are required to disclose certain information to the SEC, the commission says investors are often in the dark about the financial condition of companies that are not listed on the NYSE or Nasdaq.
"When publicly available information is scarce, fraudsters can more easily spread false information about a company, making profits for themselves while creating losses for unsuspecting investors," the SEC said in its alert.
In other words, investors should do their homework on pot stocks or else their portfolio might go up in smoke.
Posted in: colorado, marijuana, marijuana stocks, pot, SEC, weed
You do not think there is any chance for license next week. ?
Key issue license. Glad bill meet Chris it was the right move to make. No matter what you do there will be controversy. Bill has produced on the building and deadline. We know he has been working in our favor. Secondly who is going to put building after building when not one plant is in ground. Good business decision. Thirdly all companies puff wheres. No one in their right mind would expect this company to produced 1.3 million pounds of MJ in the first year. Fourth, we now have research and development which could be worth money in its own right. Thanks for post Zupe.
Zupe once again thanks for your posts. I thought by now low .06 we are still hanging. Next week is an exciting week. Let's see what happens Tuesday or Wednesday. Was recent attempt to increase growth and incite that we are about to get license. Or is it a cover for we have growth even if we are denied at this point? I feel they will get the license. Once again thanks for your posts.
Thanks for your reply. I am in agreement with you. Just wondering if be May 21, 2014.
I feel once we get the license the sky is the limit. That is why it is so important. Any idea Zupe when you think we will find out. Also not putting the cart before the horse this company like others will take steps to progress.
Good man thanks for rectifying that. Class Act
Great posts. But I do think we will hear something next week.
I thought HC let them know that day and then several days later gave them formal approval. Am I correct. Clearly they would not come and not make a comment on what they see.
Now your acting like a Capo. Thanks for the email. Do you think we will see something next week re license? I would be shocked if it came out on the the 21st of May.
Are they panicking or are they shorts in sheep's clothing? This company has not changed from last week except for the better. Great posts.