The legal marijuana movement has put a premium price on a number of companies with cannabis connections. Shares of companies in several marijuana-related businesses have shown huge gains over the past few months in the euphoria following legalization in Colorado and Washington.
Medbox (MDBX) is one example. Shares have nearly quadrupled n 2014 despite a host of accounting and legal red flags and its inability to earn a profit for at least two straight years.
Another company, Enertopia (ENRT), originally was in the renewable energy business. It’s filings say it has two employees and has had no revenue for either 2012 or 2013. On November 4, 2013, however, the company announced a letter of intent to acquire a 51% stake in a medical marijuana business; shares immediately jumped to 5 cents on volumes of more than 200,000 shares — roughly equivalent to the previous six weeks of trading activity. Enertopia shares recently had 15 trading days with volumes above the 200,000 mark, including on January 9, 2014, when more than 1.2 million shares changed hands.