Pubdate: Sat, 22 Mar 2014 Source: Virgin Islands Daily News, The (VI) Copyright: 2014 Virgin Islands Daily News Contact: http://www.virginislandsdailynews.com/ Details: http://www.mapinc.org/media/3486 Author: Gary Strauss, USA Today Bookmark: http://www.mapinc.org/find?323 (GW Pharmaceuticals) Page: 11 IS THE BLOOM OFF MARIJUANA STOCKS? The non-profit Financial Industry Regulatory Authority says investors should remain wary and research pot stocks before they consider buying. Wall Street seems to be losing its appetite for pot. Marijuana stocks were high flyers - so to speak- after Colorado and Washington states legalized pot sales and several other states announced they may legalize sales or decriminalize possession. Shares in about 20 marijuana-related companies began soaring, with some gaining more than 500 percent off 52-week lows. But marijuana mania continues to fade as investors realize there's more smoke than fire at many companies, which show "pot-tential" but little actual revenue. CannaVest, which specializes in industrial hemp production, had climbed to $180 a share last month. Trading at $62.40 Friday, it's lost nearly two-thirds of its market value. Thursday, the Las Vegas based company suggested its still a bit of a gamble, saying it is "continuing its plans to be in the forefront of establishing a domestic industrial cultivation and production infrastructure" and that it's "partnering and collaborating on research and pilot projects in states where hemp has been legalized." Vape Holdings, which markets marijuana vaporizers and e-cigarettes, is trading at $28.89. It traded more than 40 percent higher earlier this month. AVT, a manufacturer of medical marijuana dispensers, is down 50 percent from its January, $8 high. Many pot stocks are thinly traded "pink sheet" stocks, little followed by stock analysts and able to forego the financial reporting requirements of larger, more established companies. Among them, GreenGro Tech, trading at 57 cents, is now off 53 percent from its January $1.20 peak. Cannabis Sativa, now at $10.50, 42 percent below an $18 high. Medical Marijuana, at 31 cents a share, is off 35 percent from a 52week high. Cannabusiness Group, down 15 percent the last two days, is at 25 cents, down nearly 50 percent from a 48 cent peak on Tuesday. Hemp Inc., which traded at 34 cents Feb. 5, is at 11 cents, a 68 percent fall. Aventura Equities, which holds licensing rights to medical marijuana products, trades at 5 cents. On Feb. 26, CEO Richard Armstrong said loyal shareholders "have an opportunity to participate in an industry sector that will reward their patience." Shares closed at 41 cents that day, 720 percent higher than current levels. The non-profit Financial Industry Regulatory Authority says investors should remain wary and research pot stocks before they consider buying. "These stocks can be incredibly volatile and you can see significant prices swings with low trading volume," says Gerri Walsh, head of FINRA's investor education. FINRA issued an alert last August, saying scammers were touting the stocks, riding fat gains and then dumping them. The lone pot-related stock to maintain its relative high: American Depositary shares of GW Pharmaceuticals, trading at $68 and down just 20 percent from its peak. The London-based biotech firm is developing therapeutics from cannabinoids to treat epileptic seizures, Type 2 diabetes and schizophrenia. Its Sativex medication, designed to treat cancer pain medication, is in clinical trials. Shares are up 700 percent from July 2013 lows. - --- MAP posted-by: Matt