Saturday, April 12, 2014

Marijuana Stock Gets Halted

I recently listed PHOT as a stock I was checking out, trading on this stock has since been halted as of April 10th.  I fortunately sold my shares while I still had equity.  The Executive VP Robert Hunt sold 500,000 shares of his own stock which caused alarm among many traders.


It is tempting to jump into the marijuana sector because of its newness and the potential upside given the recent legalization efforts.  I would caution new investors however to only use play money with these stocks, if you can’t afford to lose then don’t invest it.  The companies in this sector are new and are not led by management that is familiar with SEC compliance.  There is going to be bumps and bruises during this new growth period but eventually some companies will emerge as forerunners and that’s the time to buy.

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