5 ways to play the hottest trend in cannabis

For a growing number of users, 'vaping' is replacing smoking as the best way to consume the plant. Here are stocks to watch in this area.

By Benzinga Feb 13, 2014 4:09PM

Credit: © 694880562092
Caption: A worker checking a bar code on a marijuana plant at in Denver, ColoradoBy Alan Brochstein


With the implementation of legal, recreational cannabis in Colorado going smoothly, Washington's implementation on the way this spring and talk of many other states considering legalization, marijuana stocks have been quite strong this month.


While the entire sector is performing well, one part of the market capturing attention early in the year is vaporization.


For those not familiar with this method of consuming cannabis, it involves heating liquid or wax concentrates (or even leaf), but without burning it. Industry think-tank Arcview Market Research pointed to the trend in its "State of the Legal Marijuana Markets, 2nd Edition" report.


There are many benefits to "vaping" compared to smoking, including less waste, fewer health risks, easier concealment and a more potent THC hit. Investors in public stocks can't yet invest directly in marijuana concentrates, but there are five stocks poised to benefit from the trend toward vaping.

Medical Marijuana, Inc. (MJNA) sells a product through its subsidiary HempMedsPx, the Brain Dart, a vape-pen that sells for $30. The company also sells cartridges of hemp oil, HempVĀP, with a significant concentration of cannabidiol ("CBD"), one of the constituents of marijuana. Customers can buy an empty cartridge that can be filled with concentrates derived from marijuana as well. The hemp oil is manufactured by related company, CannaVest (CANV).


Medbox (MDBX) is best known for its vending machine -- but, through an acquisition, it entered the vaporization market last year, buying Vaporfection International. The company offers the viVape 2, a tabletop unit which retails for $299, and it will be offering the miVape, a portable vaporizer, this summer. The company recently was awarded two patents .


Vape Holdings (PLPED) is a relatively new company that recently acquired HIVE Ceramics. It offers ceramic nails used in "dabbing" -- placing a dab of cannabis on a hot surface and inhaling the heated product -- as an alternative to titanium or quartz . The company intends to offer "cutting-edge technology" for vaporization of cannabis concentrates, including vaporizers, ceramic elements, dry herb chambers and tooling and manufacturing services. In early February, the symbol will change to "VAPE".


Seattle-based Mcig (MCIG) recently launched its second-generation vape-pen that sells for just $10. The device lends itself well to travel and inconspicuous consumption. The new mCig device vaporizes dry leaf and wax but also will soon offer the option of liquid concentrate vaporization. The company also announced an acquisition of Vapolution, which sells a higher-end tabletop unit for $175-250 as well as a portable unit for $210, rounding out its product set, and it will soon launch a new product that it hasn't yet fully disclosed, the "Vita."


Disclosure: 420 Investor has a long position in its paper portfolio in MCIG.


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21Comments
Feb 13, 2014 5:51PM
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Want a good (pot) related business, start a MUNCHIE MOBILE like a food truck. Carry chips, donuts, chocolate milk-Gatorade, and all the other essential food(s) someone stoned and starving would eat. Start cruising neighborhoods(after dark) in Colorado and Washington that demographically would have the (highest)percentage of stoners per capita. Quietly play some appropriate stoner music and drive slowly-watch for their beady little red eyes coming toward you and stop and feed their need(s). It would be a win-win, they wouldn't have to drive high to get their junk food fix and the atmosphere you would gratefully show them would not induce paranoia. YOU COULD MAKE MILLIONS AND TONS OF STONER WORSHIPERS. Wonder if the small business admin would finance you..
Feb 13, 2014 7:04PM
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Everybody is smok en  this sheet.Just don't mess up your drug test at your job.You do need a job.
Feb 13, 2014 7:01PM
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I find it interesting all of the multi-national corporations positioning themselves to hop on marijuana band wagon as states begin to legalize medicinal and even recreational marijuana. It truly is one of the easiest plants to grow. Though if you are into the hybrid seedless variety, it takes some gardening skill to achieve greater success. But this is a plant that everyone can grow. It will be interesting to see if legislation will allow personal cultivation. This way people can grow what they need whether medicinal or recreational.

 

What happens with legislation will reveal who and what is ultimately behind the legalization of marijuana. I would hate to think that companies and lobbyist have already positioned themselves to control this industry that really needs no controlling for personal use other than consumption by and for adults only.  

Feb 13, 2014 7:29PM
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Based on the money to be made, Corporate America is jumping in. That means it will be legal everywhere soon. Lobbyists talk and politicians listen.
Feb 13, 2014 7:27PM
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It look like it going in the right direction,it can help out with pain,so it was meant to be It was put her for a reason .Will  be legal all over the country it just a matter of time.
Feb 19, 2014 2:22PM
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Should add Latteno Food Group (LATF) to your list. Focused on the rec use arena. You can still get shares for well under a nickel a share.
Feb 14, 2014 12:59PM
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i hope you grammer/speling kops, git that settled........
Feb 14, 2014 12:03PM
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I think the "Night time Munchie Wagon" idea and story is about the funniest thing I've read in a long time...Still LMAO, from last night...


I'll be passing on the story...

"especially the beady, little red-eyed zombies, out prowling around."

Feb 13, 2014 7:51PM
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People in Colorado, Washington and every other jurisdiction where weed is legal will come to rue the day they voted for legalisation.  Any monetary gains in marijuana taxes will be offset and then some by the decline in income tax revenue because the state becomes full of stoners who can't hold down a job.  DUIs will increase.  Families with children will leave the state because they don't want their kids exposed to the pot culture.  Health and auto insurance companies will use legalised pot as an excuse to raise premiums.  Tourists coming in to take advantage of legalised pot will be on their worst behaviour - drinking too much, doing all sorts of drugs, harassing other people, committing crimes and trashing the environment around them.  Although there are umpteen drugs more dangerous than pot (including alcohol and tobacco), no good can come from legalising it, trust me.
Feb 13, 2014 8:02PM
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I think pot is better than pharmaceuticals for pain and illness, but if your smoking it just to get high your an idiot.
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