MJ Stocks Analysis

[nopancakemix]

The Yearly MJ Cycle
I can't PM but here is my answer to questions about this cyclical downtrend of the MJ markets;

For three years now the MJ markets have popped in Q1 and sold off Q2-4.
So far 2014 has not been an exception. While the Q1 pop was drastically exacerbated by the Colorado legalization, the sell off has been equally as steep, also exacerbated by the SEC halt of PHOT and CANN.

Sorry to be the bearer of bad news, but the cycle usually lasts until December. November and December is when I really start establishing my positions (check my post on the Tranzbyte board from Nov 2013 titled "I'm Giving ERBB Until Q2).

However, I still hold on to the belief that 2014 is different. I'm mean 2 states have legalized cannabis for recreational use! That's insane. That's 80 years of institutional propaganda being cast aside. The black market for marijuana is absolutely enormous and so far, Colorado has provided a shining example of how that market can be successfully brought to the light. Right now 13 new states have some sort of MJ legalization initiatives on their ballots for the mid-terms in November. That would bring the total to 35 states, more than half the country.

Right now many of these public MJ stocks have an enormous jump on any of the traditional drug, alcohol or tobacco companies. I expect over the next year or so we will be seeing some major acquisitions. Big MO (Phillip Morris) is well aware of the atomizer / eCig market eating into the traditional smoking product revenues. Don't think Pfizer, Merck and big pharma players aren't aware of the medical properties of cannabis. And the liquor industry will likely just look into acquisitions rather than continue to spend money supporting anti-MJ lobbies in order to outlaw competition.