This is probably no surprise. Given intense media attention, legal sales of recreational cannabis in Colorado, and a full lineup of states moving toward medical legalization, investments in marijuana-related firms have been posting stellar returns.
That, at least, is the story if you believe the folks behind The Marijuana Index, which tracks publicly traded, cannabis-related stocks. Keep in mind that company simply tracks a list of firms it has accepted for its index (and not all publicly traded cannabis concerns).
The Index says that in the month of February the stocks it tracks went up a whopping 125 percent in value, which is insane compared to the single-digit gains (or even losses) you might see from typical blue-chip stocks.
According to a statement:
The Marijuana Index hovered around $25 at the beginning of February, and closed the month at $56.21, reflecting a gain of 125 percent. The total index valuation soared beyond $6 billion … achieving unprecedented valuations and following several listing additions to the index. Some companies experienced all-time highs while overall trading volume remains strong.
The Index says star performers included CannaVest, Abattis Bioceuticals, Advanced Cannabis Solutions, Zoned Properties, and more.
The firm said President Obama’s admission that marijuana is less dangerous than alcohol, along with continued calls for the rescheduling of marijuana from an outlaw drug to one with federally recognized medical uses, have inspired investors to jump in:
Though industry insiders remain cautious, the move illustrates a commitment to eliminating challenges inherent in a cash-flushed cannabis business.
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