Here Are The 10 Stocks To Play California's Huge Marijuana Legalization Vote

marijuana

The first medical marijuana stock went public last year, but with California’s pending vote on Proposition 19, which would essentially legalise marijuana in the state, there has been a resurgence in cannabis stock interest. 

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These stocks may make for good shorts too, as there is the possibility Prop 19 may not pass. A recent poll from the Public Policy Institute of California shows prop 19 getting turned down, while another from the LA Times and USC shows it failing by a wide margin.

But there are pro-pot signs out there too. According to www.yeson19.com, Prop 19, or the Regulate, Control and Tax Cannabis Act of 2010, has received hundreds of endorsements from enforcement officials, physicians, economists, elected officials and law professors. And one recent poll with an automated interview showed the measure passing 56 to 41.

The owner and operator of marijuanastocks.com, who does not want to be identified for professional reasons, said traffic on his site has increased over 400% in the past few days, with the majority coming organically from search engines. “Prop 19 has raised awareness to a bit of a boiling point,” he said.  “People who haven’t been following developments in this area closely are beginning to visualise legit business models outside the black market, beyond ‘medical’ dispensaries, and into ancillary/supporting businesses.”

He said around last November there was a lot of excitement that lasted for two or three months when people realised they could legally invest in these medical marijuana companies. But since many of the companies are still working on building their infrastructure, the lack of solid news led to stock prices levelling out.

Another event that may lead to an increase in stock prices is The Marijuana Conference in New York today and Tuesday. The conference claims to be the first non-biased look at business, health and legal issues surrounding marijuana. 

Cannabis Science, Inc. (CBIS)

Change in value since April 1, 2010: -12.44%

A biotech company that develops pharmaceutical cannabis products. They recently announced they will be implementing a pharmaceutical grade cannabis product development and quality control standards. In light of Prop 19, the company is gaining a significant amount of interest, according to the owner and operator of marijuanastocks.com.

Source: Cannabis Science, Inc.

Note: Prop 19 put to ballot March 24

Cannabis Medical Solutions, Inc. (CMSI)

Change in value since April 1, 2010: +150%

A company that specialises in merchant payment solutions for medical marijuana dispensaries. They recently announced that they signed an exclusive agreement to provide specialised cashless ATM's and POS banking solutions for dispensaries in 15 states. Cannabis Medical Solutions was the first medical marijuana stock to go public last year under the name Medical Marijuana (MJNA).

Source: Cannabis Medical Solutions, Inc.

Note: Prop 19 put to ballot March 24

Smokefree Innotec, Inc. (SFIO)

Change in value since April 1, 2010: -2.44%

A company that develops and manufactures smokeless nicotine delivery cigarettes. In August they signed a Joint Venture Agreement with Cannabis Science (CBIS) to develop and market several high-tech smoke-free vaporized medical cannabis pharmaceutical products.

Source: Smokefree Innotec, Inc.

Note: Prop 19 put to ballot March 24

Marijuana Incorporated (PCIO)

Change in value since introduction of Prop 19: +4300%

A corporation that markets Hemp clothing, is one of the first distributors in The Hemp Network and is developing a 420 resort.

Source: Marijuana Incorporated

Note: Prop 19 put to ballot March 24

GreenGro Technologies, Inc. (GRNH)

Change in value since introduction of Prop 19: +124.4%

A company that provides management services for funding, planning, construction, staffing and operation of medical marijuana dispensaries. In April they announced an agreement with three local dispensaries to manage the cultivation of medical cannabis on behalf of their patients.

Source: GreenGro Technologies, Inc.

Note: Prop 19 put to ballot March 24

Amergence Group, Inc. (AMNG)

Change in value since introduction of Prop 19: -86.12%

A company founded in 1998 that helps early stage business owners develop their companies. In August, they acquired Altitude Organic Licensing Corporation, a (AO). Altitude Organic Medicine was founded in early 2010 and has five stores using its Altitude Organic™Trademark. They also offer medical cannabis advocacy and consulting services to their licensed dispensaries.

Source: Amergence Group, Inc.

Note: Prop 19 put to ballot March 24

Converted Organics (COIN)

Change in value since introduction of Prop 19: -37.58%

In July, Converted Organics acquired TerraSphere (the transaction is expected to close in mid-November), a company that plans to secure a licence to cultivate medical marijuana in Rhode Island. If granted the licence, TerraSphere will use vertical farming technology to produce pesticide and chemical-free plant products.

Source: Converted Organics

Note: Prop 19 put to ballot March 24

GW Pharmaceuticals (GWPRF)

Change in value since introduction of Prop 19: -16.29%

This UK-based pharmaceutical company is developing cannabinoid medicines to treat Multiple Sclerosis, cancer and neuropathic pain. Last month they announced the beginning of Phase IIa clinical trials of cannabinoids as potential treatment in type 2 diabetes and metabolic syndrome.

Source: GW Pharmaceuticals

Note: Prop 19 put to ballot March 24

International Merchant Advisors (IMAI)

Change in value since introduction of Prop 19: -90.83%

An investment company that owns California-based Organic Science, Inc, which plans to launch a line of medical marijuana products.

Source: International Merchant Advisors

Note: Prop 19 put to ballot March 24

LC Luxuries Limited (LLUX)

Change in value since introduction of Prop 19: +20600%

An investment company that used to sell beauty products on Makeup.com. It changed its name to LC Luxuries in April 2010 and acquired U.S. Cannabis, Inc., which manages medical marijuana clinics. Recently, they signed a letter of intent with Synergistic Resources to control marketing and advertising for 10 medical marijuana clinics. The company is also seeking to acquire Weedmaps.com, an online community where medical marijuana patients connect with others in their area to discuss and review local cannabis co-ops, dispensaries, medical doctors and delivery services.

Source: Businessweek, Marketwatch, Marketwire

Note: This chart begins at July 30, 2010, Prop 19 was put to ballot March 24.

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