One Marijuana Stock Earns Some Legitimacy Plus Other Pot News (GWPH … – SmallCap Network

Its been a rather eventful week for news from the marijuana sector and small cap marijuana stocks like GW Pharmaceuticals PLC (NASDAQ: GWPH), Tranzbyte Corp (OTCMKTS: ERBB) and Growlife Inc (OTCMKTS: PHOT) as one of these stocks gets endorsed by Morgan Stanley while another appears on CNBC – more signs of legitimacy for an investment sector that’s full of pumps, dumps and other unsavory types of activities. Just consider the following small cap marijuana stock or pot industry news:

GW Pharmaceuticals PLC Soars on Morgan Stanley Coverage. UK based GW Pharmaceuticals PLC, which is developing a product portfolio of cannabinoid prescription medicines, soared more than 32% on Tuesday after Morgan Stanley initiated coverage of the stock with an Overweight rating and $103 price target. Morgan Stanley also predicted that US sales of GW Pharmaceuticals PLC’s Sativex, a treatment for MS spasticity and cancer pain, should grow over time. GW Pharmaceuticals PLC is up 47% since the start of the week, up 68.1% since the start of the year and up 656.1% since last May. 

Cramer Endorses GW Pharmaceuticals PLC. For what his opinion might be worth, CNBC Mad Money host Jim Cramer called Morgan Stanley’s recommendation “timely” and “bold,” predicting the stock will quickly reach the target because:

“It’s not a medical marijuana stock. They have a novel platform. It is an epilepsy company.”

However, he still warned investors to stay away from other marijuana-related penny stocks, saying:

“Forget it! If you like cannabis, and I’m not necessarily speaking about ‘liking’ cannabis, it’s GW Pharma.”

Marijuana: A New Frontier for Silicon Valley. Mat Honan, senior writer at WIRED, has written a story entitled “High Tech: How Silicon Valley entrepreneurs are rushing to cash in on cannabis.” Honan was then interviewed by The Daily Ticker where he talked about Stanley Brothers’ Charlotte’s Web marijuana strain that has therapeutic benefits without a big high for patients who have seizures. He also commented that there’s been talk about pot businesses using bitcoin and other virtual currencies in their banking relations, but so far there haven’t been any “large-scale solutions” to address the problem of banks continuing to avoid the sector.

Tranzbyte Gets CNBC’s Attention. Stephen Shearin, the COO of Tranzbyte, recently appeared on CNBC to discuss his company’s age verification marijuana vending machine for medicinal users that, by law, must sit inside a dispensary. When asked why someone would want to buy pot from a vending machine, Shearin commented:

Well, you know, at this point, it’s very new, it’s news, right? We’re talking about this and people getting their cards and they’re going in, experimenting, maybe they did it in the ’60s and ’70s, coming back to it, being treated for an ailment and they have a lot of questions and they should have those questions answered and take the time and be educated about it. If you know what you want, you don’t want to stand behind somebody who is asking. Should i eat it? Should i dab? Should i infuse? Should i have a blend? There’s a thousand questions they have. Somebody might know they love the dispensary. It’s temperature controlled, 58 degrees and the thing right behind, they can bypass the whole conversation and be in and out in a few minutes. Most dispensary conversations and sales take 15 minutes. People stand in line for 45 minutes. We can speed that up so they can get in and back out. 

Tranzbyte is up 2,000% since the start of the year, up 577.4% over the past year and down 53.3% over the past five years.

Growlife, Inc Trading Suspension is Scheduled to End as the Company Scrambles to Limit the Fallout. Growlife, which is focused on the specialty hydroponics industry (pretty much code for supplying what is needed to grow pot), was hit be an SEC temporary suspension lasting from at 9:30 am EDT on April 10 until 11:59 pm EDT on April 24. Yesterday, Growlife issued a press release to announce a new shareholder hotline and email communication system to address anticipated increases in shareholder questions over the next several days plus the company posted an open letter to shareholders from its Chairman and CEO, Sterling C. Scott, which stated:

The SEC has informed GrowLife through counsel that it is not the subject of an informal or formal investigation.  The SEC has not requested any documents from the company or its Board.  Nor have they issued GrowLife any subpoenas or broad requests for information.  

It appears, from counsel’s discussions with the SEC’s staff, that the SEC suspension was prompted by concerns that some 3rd party holder(s) of GrowLife stock may have been planning to engage in some form of manipulative promotional activity. GrowLife does not have any more specific information regarding this matter.

The letter went on to state that the Board of Directors of GrowLife has been actively working with management to establish even higher levels of oversight and checks/balances in place throughout the company. GrowLife is up 253.5% since the start of the year, up 1,109.6% over the past year and down 44.8% over the past five years.

Nine Reasons Sanjay Sanjay Gupta Changed His Mind About Marijuana. Dr. Sanjay Gupta, CNN’s chief medical correspondent, has nine reasons and one BIG unstated one for changing his views on pot. The nine stated reasons include: 1) Marijuana laws are not based on science; 2) Marijuana doesn’t have a “high potential for abuse”; 3) In some medical cases, marijuana is “the only thing that works,” 4) It’s safer than a lot of prescription drugs; 5) Seventy-six percent of physicians surveyed would prescribe marijuana to ease the pain of women suffering from breast cancer; 6) It is still nowhere near as bad at drugs like heroin or cocaine, or even booze; 7) The medical and scientific communities have been studying medical marijuana since the 19th Century; 8) Only 6% of research on marijuana published in the last year analyzed benefits; and 9) The system is biased against research into pot. And unstated reason number 10? He or his bosses at CNN have read the polls about marijuana – and then looked at their ratings verses those of Fox and MSNBC…

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