Marijuana Stocks: Don't Get Burned, Get Rich

Written By Jimmy Mengel

Posted July 7, 2014

If you just read the mainstream financial headlines, you’d think marijuana stocks were the single hottest investment the world has ever seen…

  • The Marijuana Gold Rush Is On

  • Marijuana Stocks Soar!

  • These Stocks Pot Shares Rally 21% to 1,700% as Speculators See Green

But if you look below the surface, you’ll find one of the most volatile industries this side of the dot-com bubble. Just check out the gains some companies have made since recreational use has become legal in states like Washington and Colorado:

  • 320% on MedBox (MDBX)

  • 1910% on CannaVEST (CANV)

  • 3300% on Hemp Inc. (HEMP)

And here are the resulting crashes:

  • MedBox dived from $93.50 to $17.53

  • CannaVest dropped from $161 to $11.43

  • Hemp Inc. tumbled from $.30 to $0.06

That’s why I generally stay away from the fly-by-night operations that may net you 500% — but more likely will leave you with nothing but vapors…

I like to do my research, not base my investment decisions on the “listicles” Business Insider or Yahoo Finance use as click bait. I want to hear my news right from the horse’s mouth: what do people with intimate knowledge of the industry have to say?

That’s why I recently sat down with the foremost expert and advocate on medical marijuana in America. Famed television host Montel Williams…

The world famous talk show host and advocate for U.S. veterans dropped by our offices last week to discuss a wide variety of investments. We talked to him at length about a number of other issues, but marijuana stocks were what I really wanted to pick his brain about.

And he was fired up about it…

You see, Montel has been the de facto spokesman for medical marijuana since he began using it to treat his multiples sclerosis over a decade ago. And believe me, the guy looks great and is as energized as ever. He told me that he’s been using medical cannabis daily for the last 12 years, and attributes much of his current good health to his medical marijuana prescriptions.

“It is just like any other plant based medicine on this planet — just like aspirin came from the willow tree.” he told me. “I can’t for the life of me understand why anyone would want to keep it from those truly in need.”

Medical marijuana is a natural substance that comes from the cannabis plant — which has a medicinal history that goes back thousands of years. In fact, archaeologists have found evidence of medicinal cannabis use in China that dates all the way back to the Neolithic period, around 4000 BC .

It was only modern scare tactics and government overreach that banned it in the first place. Thankfully, those philosophies are going the way of the buffalo…

With the overwhelming addiction problems coming from medications based on opiates, medical cannabis has much to offer as a completely natural treatment, without the horrific side-effects and addiction issues of most prescription medications.

“Marijuana does not have the physical addictive components that opiates do,” according to Shelley Stormo, clinical psychologist at the largest addiction treatment clinic in Cape Cod. “It does not have the propensity, as opiates do, for overdoses. There’s no documented death by overdose of marijuana.”

It is basically a medical no-brainer. As the stigma begins to lift, this will be big, big business. And that’s why we’re digging into it as a long-term investment.

That’s why Montel advised me to look into the medical side of the marijuana business, where companies are actually required to answer for themselves — through rigorous testing, regulations and best of all — results.

While any company can slap the word marijuana onto its name to boost its stock price a few hundred percentage points (see the recent example of Integrated Parking Solutions changing to Integrated Marijuana Solutions. After the name change, its stock rocketed 639%.), it takes a serious operation to even break into the medical marijuana field.

Montel even divulged to me that the United States is growing tons — that’s right, tons — of marijuana right now for eventual widespread medical uses. With the recent legal victories piling up, they see it as an inevitability. That’s why now is the time to start diving into these rising companies before they let the cat out of the bag.

And widespread legalization is far more likely in the near term for medical marijuana than it is for recreational marijuana. Right now 23 states have legalized medical marijuana while only two have opened up their shops for recreational use.

That number will continue to grow — not just in the U.S., but globally as well.

There is a built-in audience of patients who can benefit from such use. While Montel uses it to manage the pain resulting from his MS, there are other far-reaching medical uses:

  • Cancer

  • Parkinson’s

  • Glacoma

  • Epilespy

  • Chronic Pain

Those are big markets. And the list goes on and on.

So as more and more states in the U.S. open their doors to this groundbreaking treatment, more companies will crop up to meet the huge demand. Just look at these projections from the Marijuana Business Factbook:

marijuana sales estimates

So while plenty of money will be made in both recreational and medical marijuana stocks, I firmly believe that safer, bullet-proof profits will be coming from the medical sector. We’ll be bringing you more expert commentary from Montel Williams in an upcoming series of research reports about the very best medical marijuana stocks out there. Keep an eye out for them in the coming weeks.

Before dumping any of your hard-earned money into the smoke and mirrors of “pot stocks”, I urge you to wait until you read these groundbreaking reports. Stay tuned.