GrowLife Inc (PHOT)

[tektone]

Now, to be clear:

Investing in anything marijuana-related is like taking a time machine back to the Wild West (or at least the late 1960s and free love). The space is filled with dubious stock promoters, a ton of internet chatter, and companies that haven't turned a profit... yet.

Growlife fits every one of those caveats - but it is one of the only companies that files regular earnings reports. This means, in turn, that Growlife, more than any other company in the industry allows us to look under the hood an examine operations.

The company recently reported 2013 revenue of $4.86 million, which represents 235% increase compared to audited revenue in 2012.

The stock is currently trading at just $0.51. If (more likely, when) the next state steps up and joins the legalized marijuana club, I think the stock could easily explode to over $5.00 in very short order on the perception that more states will follow.

If that happens, we will be capturing profits along the way to ensure we keep our gains and limit our risk related to any volatile price swings.