GrowLife Inc (fka PHOT)

[Kristi]

Ok then... explain this ~

http://www.istockanalyst.com/finance/story/6713629/growlife-inc-otcbb-phot-insider-buys-as-weed-business-grows

Growlife Inc (OTCBB:PHOT): Insider Buys As Weed Business Grows
By: Rich Bieglmeier
January 27, 2014 02:10 PM


The MLK Day shortened trading week saw a reduced number of insiders buys as measured by the number of companies with purchases. We identified just 50. Ah, but we have something to write about, like always.

Marijuana stocks have been in focus sine Colorado and Washington State legalized the drug for recreational use. At the moment, 20 states plus the District of Columbia made medical marijuana legal.

Now, iStock monitors insider buying activity on a regular basis. We don't recall seeing pot stocks finding their way onto our lists. That changed this week with Growlife Inc (OTCBB:PHOT). Director, Alan R. Hammer purchased 225,000 shares of the weed associated stock at $0.19 for a total investment of $42,746.60.

[Related -Medical Marijuana Inc (OTCMKTS:MJNA): A Look At Pot Stocks Offering Quick Bucks]

Just so you know, PHOT is a diversified company operating in the legal cannabis industry which develops, markets and deploys products and services addressing the needs of legal cannabis growing and retail operations, including hydroponic growing equipment and retail support software.

While the dollar amount of Mr. Hammer's (can't touch this – couldn't resist) isn't overwhelming, any insider buy is worth examining.

Hammer is an attorney and advisor with a focus on investment properties and tax law. He even won a case in front of the Supreme Court. It wouldn't be too surprising to see the marijuana business spending a lot of times in courtrooms where his expertise might be needed.

[Related -Medical Marijuana Inc (OTCMKTS:MJNA): A Look At Five Best Marijuana Stocks]

In all likelihood, because marijuana is still federally illegal, Mr. Hammer will be pounding on the tax laws so that legal entities, like PHOT, will be able to write–off capital investment just like every other business, which could lead to a nice uptick in sales.

It doesn't require legal/tax expertise to understand why the director forked up $42k for PHOT shares. It's been widely reported that marijuana sales exceeded $5 million dollars in the first week of legalization and that dispensaries are running out of supply.

At least five other states are thinking about legalizing weed in 2014, they include: Delaware, Hawaii, Maryland, New Hampshire, Rhode Island and Vermont. Momentum will build for additional states to allow recreational use as more states approve marijuana. Do you really think other states will just say no to the tax revenue, not to mention incarceration costs?

Connecting the dots, as more states legalize marijuana (it's inevitable), the demand for Growlife Inc (OTCBB:PHOT) products will grow, and so will their sales and eventually profits. Some analysts expect the legal marijuana business to approach $18 billion within the next four years. If enough states get on board, it's likely happen before that in our view.

Although Mr. Hammer's purchase is the first we can remember, iStock doesn't expect it to be the last.