Why Marijuana Stocks Might Go Up In Smoke

20582973_sMedical Marijuana in San Diego, for example, was founded by Bruce Perlowin, who spent nine years from 1983 to 1991 in prison for smuggling marijuana into San Francisco from Colombia. And a board member at the company was arrested for possession in Alabama in 2013. Perlowin is now CEO of Hemp, based in Las Vegas, which would like to become a leader in the industrial hemp industry.

Another pot executive, Michael Llamas, the former president of Medical Marijuana (MJNA), was indicted by a federal grand jury in 2013 for his involvement in mortgage fraud that caused $10million in losses. He has pleaded not guilty. Given that many marijuana companies have dubious financial records and questionable management, and that they’re influenced by con artists, its surprising that any investor would be interested.

Yet there continues to be considerable interest in the subject on Internet forums and a bevy of activity. Some stocks, such as Cannabis Science, trade more than a million shares per day. Even GrowLife, which went from 50 cents per share to 3 cents before the SEC temporarily halted trading, has an average daily trading volume of 1.6 million shares.

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