Monday, November 19, 2012

Medical Marijuana Vending Machine Company's Stock Surge After Profile

Medbox, a manufacturer of medical marijuana vending machines profiled in The Wall Street Journal's MarketWatch and the subject of this earlier post, saw its shares climb a whopping 3,000 percent from $4 a share to $215 after the news item spotlighted the company.

Executives in the company called for investors to chill out, settling the stock to about $100 a share.

But even that price is still too high, according to the company. “We believe an appropriate trading range is between $5 and $10 but, alas, the market will do what it will do,” Medbox founder Vincent Mehdizadeh told MarketWatch in a follow-up article.

Mehdizadeh doesn't know if several large buyers or a single hedge fund was the cause of the rapid increase in Medbox's share price. However, it does demonstrate that Wall Street's acceptance of marijuana, at least for medical use, as a bona fide industry may be at hand.

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