American Green Inc (ERBB)

[jfre81]

Well, the question becomes is a 300M market cap justified for Tranzbyte. Probably not. But, then again, how exactly do you put a value on a company that is just getting started really in an industry that didn't exist in a legal form until just recently? But, for that matter, how do you put a value on - say - Facebook? Or on the dot-coms back in the day? This MJ sector trades somewhat similarly.

Venture capital and banking is balking at getting involved in the space because of the cloudy legal picture (mostly the feds) so issuing stock to raise funds to create a product is OK in moderate amounts. If it leads to four billion shares then they should be priced appropriately. There's one supposed MJ vending purveyor that we've probably heard of that has fewer shares, but it's also trading at hundreds of times higher PPS than ERBB. What justifies that?

What justifies the price of all the overweight blue chips on the Dow Jones for that matter?

It's justified because people on the market are paying for it. Four billion shares be damned, the market clearly supported nine cents for this ticker today. It's completely on hype, just like the rest of the MJ space at this point.