Marijuana Stocks are Lighting Up
(Image Credit: MGN Online)
(CNNMoney)- The business of legal marijuana is booming in Colorado, and investors are catching a contact high.
Nearly all the pot stocks are thinly traded penny stocks, available only on over-the-counter exchanges. Now though, shares of companies that service the growing cannabis market have been blazing in recent weeks.
The latest example, Medbox. The company provides products and services for businesses that dispense medication, such as pharmacies. It announced plans Tuesday to tailor its products for use in recreational and medical marijuana facilities. Shares soared 65%. (Medbox, for the record, is not a penny stock. Shares trade for about $66 and the company is valued at nearly $1 billion.)
Medbox already has more than 200 orders for the pot “safes” from customers in six states, including Colorado and Washington, Mehdizadeh added.
The orders are contingent on “licensing approvals,” he added. But Medbox is not wasting time. The company has boosted its inventory by placing a large order with AVT Inc., a company that makes vending machines. (You read that right: A pot vending machine is in the works). Shares of AVT surged nearly 120% Tuesday.
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