Read This Warning Before You Even Think About Buying a Marijuana Stock
Read This Warning Before You Even Think About Buying a Marijuana Stock by Justin Spittler – Casey Research
7,455% in a month.
That’s how much a little-known investment returned between October 2012 to November 2012.
See for yourself.
That’s what analysts like myself call “going parabolic.” But this high flyer wasn’t a junior gold stock, a tiny uranium miner, or even a cryptocurrency.
It was a company called Medbox.
• Medbox sold marijuana vending machines…
Five years ago, it was the hottest marijuana stock on the planet. But it never should have been.
That’s because the company’s founder used illegal stock sales to inflate its revenues. Its sales were bogus.
Medbox got away with this for a while. But the feds eventually caught on. The Securities and Exchange Commission (SEC) found that 90% of the company’s sales were fraudulent.
In other words, the company was one big scam.
• When investors learned this, Medbox went down in flames…
Its stock plunged 90% in one day.
The company is now worthless.
Its downfall has served as a warning to anyone thinking about investing in marijuana stocks. But let’s be clear about something…
Medbox isn’t the only marijuana scam story.
• Fusion Pharma did almost the exact same thing…
Fusion Pharma was a tiny marijuana company with operations in Denver. It sold steel shipping containers for growing marijuana.
It sounded like a great business. So, investors piled into the stock.
But the company was a farce, just like Medbox. In fact, it also used illegal stock sales to inflate its revenues.
When investors learned this, Fusion Pharma’s stock plummeted. It stopped trading in 2014.
I’m telling these horror stories because a lot of people are itching to get rich off pot. And I can’t blame them.
The legal marijuana industry is booming.
The average marijuana stock has doubled in value over the past year. The best ones are up more than 300% over the same period. And that’s just a taste of what’s to come.