The medical marijuana vending machine company MedBox’s stock price has fallen back down to earth after jumping some 3000% to $215 dollars last week. It is now trading at about $20, still a vast improvement over its usual price of about $3 a share before the election.
The spike was caused by the votes in CA, WA and MA and a MarketWatch story that discussed investing in marijuana. MedBox then issued a statement trying to dampen shareholder enthusiasm, which has brought about the drop in price.
Other companies in the marijuana industry have also benefitted from the election’s results, though none at the scale of MedBox.
SearchCore Inc., which operates media, technology and marketing companies — including WeedMaps — rose to 52 cents from 30 after the election and then jumped again, closing at 88 cents on Friday. Shares of hydroponics company GreenGro Technologies more than tripled, closing at eight cents on the Friday after the election.Cannabis Science’s stock has nearly doubled since the election.
While the increase in MedBox’s share price was an anomaly, there are many reasons to see the marijuana industry as a good investment, albeit a risky one with federal law looming over everything. Once the feds back off, investors will pour into the industry.
The potential for economic growth where cannabis is concerned is infinite at this point, especially considering the momentum that marijuana legalization enjoys in nationwide polls. It’s just a matter of time before marijuana-related stock price increases are the norm.