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.

Investing in the new Cannabis Market

The loosening of restrictions on the sale and consumption of marijuana have opened up a lot of opportunity for a host of companies.  With Colorado and Washington State legalizing marijuana for recreational use it is only a matter of time before other states do the same. There were established players already in the market but some companies who operate on the fringe are seeing a surge in their stock price as well. 

Here are some companies that one of my students recommended to me.

• Grow Life: PHOT
• Advanced Cannabis Solutions: CANN
• Vapor corp: VPCO

Grow Life: PHOT

"Growlife, Inc., through its subsidiaries, manufactures and markets horticulture and lifestyle products in the United States and internationally. It offers LED lights for indoor growing; wireless monitoring and control equipment to operate grow room functions; and plant growing systems and accessories, including nutrients, media, timers, controls, and automated water accessories." - Yahoo Finance

Advanced Cannabis Solutions: CANN

"Promap Corporation develops, owns, and lease growing facilities to licensed marijuana growers and dispensary owners for their operations. The company was incorporated in 2013 and is based in Colorado Springs, Colorado" - Yahoo Finance

Vapor corp: VPCO

"Vapor Corp. designs, markets, and distributes electronic cigarettes, vaporizers, e-liquids, and accessories primarily in the United States and Canada. The company’s electronic cigarettes are battery-powered products that enable users to inhale nicotine vapor without smoke, tar, ash, or carbon monoxide" - Yahoo Finance