Beat the Market Stock Picks

Sunday, March 9, 2014

The Case For Investing in Cannabis Stocks

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Has the move in marijuana stocks caught you off-guard?

When I predicted marijuana would be a major investing theme in 2014 for premium letter subscribers … I really had no idea it would jump out the gate with such force as it has. The legalization process in Colorado has been such an initial success that everyone in America is excited about marijuana. Add the fact that people are figuring out just how powerful Cannabidoil CBD is on so many different diseases including epilepsy and cancer; the flood gates are opening like Hoover Dam is about to spill over. There may be drought in California, but the flood in cannabis is only about to begin. For those early enough to ‘get the worm’… you will be wading knee deep in green.

The sudden and parabolic rise in marijuana stocks is the result of the smart money seeing the end of prohibition nearing. With President Obama all but giving the green light to “The Green Crack” saying that marijuana is “safer than alcohol” and now giving the okay for banks to take marijuana company’s Benjamin Franklin’s; this has simply going to put this industry into overdrive with investors literally seeing green $$$. At this point with the first real pullback open us and just making the turn on Friday’s White House bombshell, I thought that now would be a good time to go a little more in depth on the subject and highlight a few stocks.

Hopefully I can add a little bit different angle coming from a 20 year chronic who uses medical marijuana to replace HAART for HIV.

Some of the stocks I have gathered are extremely overvalued shooting up 1,000% in a month, while others are still attractively priced just entering into this lucrative market or have ‘flown under the radar’ so to speak.

Now is the Time... The End of Prohibition is Nigh

Never in my life have I seen a group of stocks go bonkers like they have in month. This is almost like the tech boom in reverse; the stocks have blown out of the gate because the end of prohibition has been anticipated for so long and everyone can sense that it the end is not in sight. Giving even further fuel to the fire, President Obama essentially legalized industrial hemp in the US last week giving it its own classification over and above marijuana when he signed the farm bill in Michigan. Now is the time to make your bets in this sector while it is literally being birthed overnight and still relatively cheap. You can’t wait. You can’t hum and haw. No. Now is the time to get into this sector as a bull markets are born overnight and always climb the wall of worry. When you want to be selling is when everyone is clamoring for cannabis. Trust me… from what I know… just cuz Colorado hits the news… Big deal... When I say everyone will be clamoring for cannabis. I mean it. Everyone.

It’s indispensable and irreplaceable medicine.
It’s a safe way to relax and be social.
It’s food for us all without wiping out the ocean fish stocks.
It’s clean energy.

The possibilities which cannabis provides us with are virtually endless!

If you have evaluated the sector, public sentiment and now political will, all the fundamentals point to the ‘naysayers’ not doing their homework on the subject. When you have a Microsoft exec quitting one of the best jobs in the world to resurrect his grandfather’s cannabis company; you know that now is the time.

I see it. Some of the smartest executives at the biggest companies it the world see it. Do you see it?

The irony is this group of stocks collectively is the shadiest, most unattractive group of stocks you would want to invest in. It is pretty hard to declare you are in the business of an illegal product that many people are spending life in prison for in the USA so you are literally buying holding companies who are spinning assets into a companies and buying assets of others that you literally do not have a clue about.

You could be buying a major Marijuana Czar’s brand of products like famous activist Steve Kubby or some two bit criminal growing a plant in his closet. Well… that is why I am here. With all joking aside, the benefits of investing in this industry and potentially coming out on top buying into the next BUD or Philip Morris in its infancy strikes at the core of everything that makes me want to be a stock picker, to be there before everyone else.

These massive moves are the types of returns that you just can’t ignore and are indicative of a major bull market in marijuana is about to begin for the next decade. Yes the sector will be around for the next 100 years and you can wait until you have widespread legalization; but by that time many companies will be established and the triple digit returns we all crave will only be double digit returns at best and that is not why you pay $100 for my newsletter. Not to get 25% gain.

Now is when the EASY MONEY is made. Now is when the BIG MONEY is made.

Yes it is slightly more risky money because there is a good deal of luck involved, but there are lot of good companies that show a lot of promise and even at $100M market cap could easily grow into that $100B valuation in a generation’s time. Look son... I bought you a POT stock in your RESP. Not that any qualify for my kids… but one day they will.

The initial move kind of reminds of graphite in 2012. If that is any indication, then we have at least 2 or 3 more months of this initial run-up; which is plenty of time to make some good dough trading for the summer. The graphite run-up fizzled largely because it was promotional and once the exuberance faded and graphite prices dropped… investors realized quickly the future in graphite mining is filled with 4 or 5 large mines of the scale of EGZ and SYR. Hardly something that you can sustain a bull market on.

I saw the writing on the wall in the summer of 2012 and since then have been angling myself for one thing and one thing only…

To help promote the coming revolution in pot.

This time it is something different. This is natural reaction of the free market to the ending of prohibition. It also doesn’t hurt that at the same time we are just hitting the tip of the iceberg when it comes to revolutionary medical advances in cannabinoids with discoveries like ‘cannabis curing cancer’. This is playing a big part of the resurgence in marijuana. It cures cancer
If you are a naysayer about POT stocks… keep on saying this isn’t real because I love to climb that wall of worry. This is just something you can’t bottle up and contain and shut off, the cannabis revolution is on and it’s starting to spread like wildfire.

BUY SOME MARIJUANA STOCKS OF COURSE!!!

I gave you my top 5. All have done very well although NVLX and MJNA have lagged while CBIS, CANV, and GWPH have performed better than expected over the short term. If you have followed my advice and bought already, I would be rotating money into names that have still yet to move like NVLX and MJNA.

The bottom line about marijuana stocks… This is as real of a move as any I have ever seen in my 37 years on this Earth. The best part is we are only in the early innings; we are only just at the beginning. Some would even say this is still the first inning! When you look at the big picture where we are hunting for the next BUD, MRK, or PM; the valuations over the next 3 or 4 decades are still extremely cheap considering the end goal. The most expensive marijuana stock is Cannavest CANV valued at $1.6B, still a fraction of the size of giants like Phillip Morris $126B, Anheuser-Busch $156B, or Merck $160B.

Cannabis can be divided into three major opportunities

Medical Marijuana
Recreational Marijuana
Agricultural Hemp

Medical Marijuana is the major focus of initially investing in this sector. It is legal while recreational use largely remains illegal. Although recreational use will be a major focused towards the end of the decade. The first 2 or 3 years is all about MEDICAL MARIJUANA. Even the future top recreational companies are all starting out as medical marijuana companies.   What I have concluded with my own experience and research is that in 10 years, most people will not be prescribed raw weed for their ailment if they choose cannabinoid therapy. So there is a lot of valued added business opportunity in this sector. They will be treated with a cannabis concentrate either vaporizing and/or eating concentrates or they will take a novel cannabinoid drug product developed by a pharmaceutical company.

This is where the medical market will end up going.   The biggest insight I can provide right now is concentrates, vaporizers and novel cannabinoid products is where the medical community is heading. So the companies who are buying marijuana brands who are producing medical pot, but neglecting to produce their own brand of concentrates, will eventually be forced into the recreational industry unless they choose to follow the road and produce concentrates.    Keeping that in mind, it should help you distinguish between true medical marijuana companies and other brand names that are destined for the recreational market.

#1 Medical Marijuana

The medical marijuana industry has the potential to grow into a $100B annual industry worldwide. From the research I have done, Marijuana treats over 100 different ailments. Most have heard about epilepsy, MS, pain, nausea, PTSD, PMS, glaucoma and other recognizable disease. Many still do not know about the biggest markets that cannabis has the potential to affect. After reading a lot of uninformed articles on Seeking Alpha regarding cannabis I want to highlight what I believe are the Holy Grails of Medical Marijuana and what will drive this industry.

The HIV drug market is at least a $20B global annual market.
The cancer drug market is a $125B annual business.
Diabetes drug market expected to reach $55B annually by 2017.
The pain medication market is a $35B annual business.

These are some of the true Holy Grails in the medical marijuana community and where science should focus its efforts. Cannabis products/derivatives/synthetics have the potential to take a significant bite out of each of these sectors. To what extent is anyone’s best guess, but a conservative estimate of 1/3 of each of the above would put the global cannabis market at $70B annually making my estimate of a $100M market for medical marijuana quite reasonable for the overall market.

HIV

In the HIV drug market, many drug manufacturers have stopped producing new forms of HAART medication and are turning towards more lucrative Hepatitis C treatments. Simply put, the profit motive is not there. Manufacturers have also simply exhausted the HAART program. They simply do not have any options left with that class of drugs and putting the $$$ into R & D programs when the problem is only for a few people with resistivity issues, is hardly the new market a company wants to go after.

Sadly when half the HIV/AIDS community starts having problems with resistivity to the HAART program which is going to eventually happen; that is when drug companies will jump to action, but by that time for many it will be too late with companies being ill-prepared.   This is going to be a big problem going forward in the HIV community. As many people are growing older with HIV, a big problem is drug resistivity which is slowing rearing its ugly head in the community. Many patients will simply start running out of options and will die over the next decade. It is already happening to patients who have been on medication since the mid 1990’s.

There is a huge opportunity for a company(s) to develop a cannabinoid class of HIV drugs that replace HAART medication as an alternative treatment. The idea instead of pumping poison in the body is to stimulate the body’s own immune system to kill the virus. This is the basis of my own health regime when it comes to treating the HIV virus. I simply turn my immune system into ‘super immune system’ and make coexisting with HIV possible. Similar to what primates do with the simian version of the disease. I am living proof that you can medicate with cannabinoids for years before ever requiring meds at all. At anywhere between 9 and 12 years with HIV with absolutely zero physical signs of my disease progressing at all and never taking any cocktail of drugs, you can’t get any better than that.

http://www.aidsmeds.com/articles/hiv_marijuana_cannabinoids_1667_22119.shtml

The Myth about H.A.A.R.T.

The biggest myth about HAART is you need to start the drug program right away. It doesn’t matter if you are day 1 or in year 25, HAART medication works the same on pretty much everyone. The big thing is you got about 20 to 30 years once you start HAART before you run out of drug cocktail options depending on the virus virility, your body, and resistivity to HAART medication.

Once you start HAART, you have significantly decreased your options because you can’t go off them. If you do, you can basically cross that cocktail of drugs off the list from ever using again. It is next to impossible to go off without having serious issues like developing resistivity to drugs even earlier on the disease. The only people who come off HAART after go on them are the people who HAART is no longer effective for.   Right now this is a relatively small portion of the population, but is expected to dramatically increase as we are nearing the two decade mark for many HIV patients and their HAART therapies.

The Biggest Case for Cannabinoid Therapy… Resistivity

The biggest sign that resistivity is going to be a big issue over the next decade for aging HIV/AIDS patients is the dramatic jump in Kaposi Sarcoma which is the commonly known as AIDS cancer and is common among many people as the disease progresses and is known as in opportunistic infection. HAART had all but eliminated this in the 1990’s and turn of the century, but now many are running out of options after 20 years of various HAART cocktails and Kaposi Sarcoma is back.

The reasoning behind my own health regime was just basic common sense.   Hold out as long as I can without HAART living as healthy a life enabling my own immune system to beat the disease. Then go on HAART only when I am at death's door.   For me at least; waiting until the last possible moment was the no brainer decision as it obviously gave me the best chance at maximizing the years of my life. If I can hold out to year 20 or even longer before I ever have to start HAART medication... that means I will have another 20 to 25 years before I ever have to worry about resistivity issues after I start HAART.

By my count that puts my at a ripe old age of 67 to 72 before I start having serious problems with HAART resistivity.   This person is on his last rope running out of HAART medication to take after being on meds since 1995. I am trying my best not to be that guy.

http://www.bloomberg.com/news/2013-08-12/hiv-survivors-seek-drug-advances-as-fda-eases-approvals.html

MARIJUANA is Integral in Boosting CD4 Cell Count.

Without CDB and THC and other cannabinoids, fighting the HIV like this would be next to impossible.

Cannabis slows down the HIV process so much so that after 10 years if I didn’t have a blood test telling me I was HIV positive… I wouldn’t know. I wouldn’t even suspect it.   This is all achieved by enabling my immune system to fight the HIV virus. In a nutshell that is all I do. Enable my immune system. If I were to make a guess, I would say that cannabis in high enough concentrations slows down the progression of HIV by at least a factor of 2; AT LEAST!!!

The whole point of the exercise is to maximize my life. I am confident a cure will be found over the next decade and I will have escaped my ordeal without ever putting that toxic garbage in my body. HAART is poison and works along the same lines as chemo drugs.   At the very least I have ensured can live to upwards of 50 years of life after infection as opposed to 30. That isn’t too bad eh?

So after 9-11 years of only CANNABINOIDS fighting HIV… I am past everyone’s timeline’s for non-HAART patients. EVERYONEs!!! According to the Canadian GOVT, I should be dead soon and I keep reminding them that I am going to die. Although we know different, that death is something that will escape me for a long time.
Hell… I don’t even get sick. I didn’t even get a cold this winter.

When it comes to the HIV, Cannabinoid therapy would help the majority of people and extend their lives by giving them an alternative to HAART medication. In my opinion and it is only mine, HAART should be treated as a last resort to treat this disease. I have ensured that I will live well into my 60’s and I am sure cannabinoids can treat others just as successfully as me.

Cancer

YES CANNABIS CURES CANCER.

You can’t keep this information a secret forever especially in the age of YouTube when you can just post a video of you curing your own cancer. This is pretty hard to discredit. I was so excited about Cannabis Curing Cancer that I ran the entire 10km of the Terry Fox Run last year screaming that to everyone while I ran that Cannabis Cured Cancer. I still managed to run it in 50 minutes flat too! In fact my lungs have never hurt so much after run in my life.

http://www.youtube.com/watch?v=Icr8RJ_MSqc&feature=youtu.be

Crazy? Sure. But nothing like a little controversy, especially when I know I am right. Sometimes you got to do crazy and go out on a limb to get the word out.   That escapade was so crazy that it got me on the 6 O’clock news.   Whispering to the person next to you won’t get the job done.   So what do you do?   You do crazy sometimes. You climb to the rooftops where everyone can see you and start screaming until everyone hears you. “Hey look at me I am crazy… “   People want to look at you because you are crazy and then you bombard them with since and facts. Not so crazy am I? And when organizations like Terry Fox and BC Cancer Agency continue to deny the existence of RSO or that it works; or even acknowledge there are companies who working on cannabinoid based cures for cancer, it just inspires to make you even more determined to spread the word.

So guess what investors??? When you invest in Cannabis stocks… you are doing a hell of a lot more for curing cancer than sending a check off to your local cancer foundation.   A HELL OF A LOT MORE!

Want to CURE CANCER? BUY A CANCER/POT STOCK!!!

It is time to send these crooked self-interested organization who are stealing from the hearts of the public when it is not even necessary. It is time to send cancer organizations the way of the dinosaur!!! We don’t need them anymore… we have POT STOCKS!!!

If you don’t buy a Phillip Morris PM because of how socially irresponsible cigarettes are; then you should be just as compelled to invest in the cannabis industry to further social responsibility in this critically important area of human health that has literally been suppressed by the GOVT and BIG PHARMA for the last 40 years.

Cannabis based cancer drugs may eventually make up a third or even more of this market.   This is loosely based on a conservative non-scientific success rate. Am I being overly optimistic? NO!!! No other substance has the success rate of curing incurable cancers than concentrated cannabis.   Brain, Breast, Prostate, Lung, Skin Cancer … whatever; it doesn’t matter. It seems that every type of cancer responds positively to cannabinoid treatment. The key is taking as high of a dose as possible which can only be attained by ingesting concentrated oils.

I have no scientific basis to justify my 30% of a $125B market. It is just way too early to make those types of estimations, but the evidence clearly points to cannabis products being the most promising cure for cancer to come along since cancer itself.

http://www.wakingtimes.com/2013/07/27/34-medical-studies-proving-cannabis-cures-cancer/
http://www.hightimes.com/read/drug-maker-secures-patent-thc-and-cbd-cancer-treatment

Diabetes: Type 1 and Type 2

Here is another major market that isn’t cured.   Cannabis regulates several things in the body that lead to diabetes in the first place like obesity. Cannabis also plays a large role in regulating blood sugar.   The information on this topic is still early, but cannabis could play a major function in treating and possibly curing diabetes. After all, most diabetes is caused by poor health and of your body being out of balance. Cannabis and the Endocannabinoid system play a vital role in regulating your body and could help to eliminate a disease like type 2 diabetes.   Why are people getting diabetes at epidemic rates? Simple… their bodies have gotten so far out of balance and equilibrium they are breaking down. Nothing replaces having a healthy lifestyle which can eliminate Type 2 diabetes as well, but cannabinoids help the body achieve equilibrium balance much easier than without.

Type 2 diabetes is a metabolic disorder and results directly from the body being out of balance.   It results mainly from obesity which is generally traced back to poor lifestyle. Exercise and eating properly will help curb and keep in check type 2 diabetes, but taking cannabinoids that regulate the system and bring your body into balance achieves the same result without all the hard workouts and strict dieting. Simply put, cannabinoids and the Endocannabinoid system help keep your body in ‘equilibrium’.

Type 1 diabetes is an autoimmune disease. If I can treat HIV successfully with cannabinoids, this should also apply to other auto-immune diseases like type 1 diabetes. What would you rather do? Shoot a needle in your arm every day with insulin? Or vaporize some shatter?   All I do is apply simple scientific method to what I have learned about cannabis over the years and the Endocannabinoid system.

300,000 Canadians live with type 1 diabetes and I imagine the ratios are similar for the US. 9,000,000 Canadians live with type 2 diabetes. That is almost a one in every 3 Canadians is affected by diabetes. The global market for diabetes is expected to reach epidemic proportions with $120B spent on diabetes care and maintenance with $55M of that being spent on drugs. Cannabis is going to play a MAJOR role in the fight against diabetes and this market although a sleep could be just as big as the cancer market.

Pain

Cannabis is one of the most effective pain relief substances available to us. I just completed an entire year of running entirely documented on excel. I ran 800 plus kilometers this year highlighted by covering half that distance in the last 3 months. I still have a screw running through the width of my Tibial Plateau.   Without the side benefit of a massive doses cannabinoids in my system, there is no way I would be able to run the distances I have run put in this year at the speeds I am running.

NONE.

The biggest reason… Cannabis is one of the best anti-inflammatories around. CBD keeps the inflammation in my Tibial Plateau that was sheared in half to next to none. 2 surgeries, a plate, and 7 screws and I am running faster now than I have at any other time in my life! This is no small feat considering I completed an Ironman in 2008 and was in very good shape when I broke my leg.

I feel so good… I just might do another one now.

Any type of pain associated with inflammation responds immediately to cannabinoid therapy. THC is also a good ‘sense’ duller which also takes the edge of the pain similar to morphine, but when it comes to inflammation type pain; nothing is better.   It’s why it works so well with women and menstrual pain. It reduces inflammation.   Why is it so effective against the Rheumatoid arthritis? It cuts the inflammation down. This is a simple cause and effect relationship.   I am not even going to mention the anti-inflammatory market, but it is BIG TOO… and the list goes on and on and on about the potential in the cannabis market.

Like it or not…

Cannabinoids are the next revolution in modern medicine.

The Endocannabinoid System

So how do all these unique diseases solved by one plant?

We are still learning… but the main reason marijuana and its cannabinoids are so effective over other medicines is it targets the body’s Endocannabinoid System. Modern medicine has ignored this vital regulatory system in our body. It is why cannabis is often the only thing that will work for a patient. Nothing in modern medicine targets the CR1 and CR2 receptors of the Endocannabinoid System which is as important as system as any other regulatory system in our body. Specifically it helps the body maintain an internal balance.

Ignoring the Endocannabinoid system is one of the short comings of modern western medicine. The only reason we have ignored its discovery since the 1980’s is because we cannot teach our kids that the body needs cannabinoids.

IT DEFIES ALL DRUG WAR LOGIC!!!

Do our bodies specifically need cannabinoids from cannabis? Not necessarily, all herbs and spices have cannabinoids for which will interact with CR1 and CR2 receptors in the body, but when we get sick, Cannabis in undeniably the most effective medicine we have available to us to affect the Endocannabinoid system.

The system that I loosely describe as bringing balance to our bodies.

The Endocannabinoid system has two main receptors, CR1 and CR2. CR1 exists mainly in the central nervous system and the brain. It explains why cannabis is so effective against many nervous system type ailments like MS and epilepsy. CR2 on the other hand is not only found in the brain, but in the immune system, the gastrointestinal tract, and the peripheral nervous system. It is CR2 that boosts the immune system and specifically CD4 counts in HIV positive people and dulls pain.

The big thing is denial of this system is not only denying us of cannabis based products that are good for us, but is also denying us science in this area when it comes to how our bodies interact with other herbs and spices and their specific cannabinoids. This could lead us to find cures and extracts in other cannabinoid latent plants that help cure our bodies.
You just cannot have a complete understanding of our bodies our how to properly maintain them without this vital piece to the puzzle; the Endocannabinoid system. I learned how the system worked and made the connection with my own body 7 years ago that THC and CDB would stimulate CD4 cell production. To this day, I have never dropped below a normal level... although I got fed up with the medical system almost 3 years ago and haven’t been back to any doctor since. So I can’t tell you me levels today.

But if I was at all sick… I am sure I would be the first to know.

The Endocannabinoid System as an Emerging Target of Pharmacotherapy

2 Paths to the Same End

The Medical Marijuana investing horizon is divided into two categories. (1)Companies selling straight cannabis products and (2) companies who are developing novel cannabinoid based drugs. Companies who are entering the cannabis product market like CANV and MJNA have the advantage of instant cash flow gratification over companies who are developing novel drug therapies like GWPH, CBIS, and NVLX. The advantage of course is that companies who win out in the cannabinoid drug development process will ultimately win the much bigger prize of being incorporated into the BIG PHARMA model while the straight cannabis products will always be considered neutraceutical vs. pharmaceutical and have to deal with regular business competition.

The 5 companies I have in this category are and don’t have much to add at this time are…

GW Pharmaceuticals GWPH – Some of the more promising drugs being developed by GWPH…

i.Sativex for MS spasticity and cancer pain
ii.Epidiolex for pediatric epilepsy
iii.Glioma Drug which is an FDA orphan candidate – received patent approval
iv.Type 2 Diabetes using THCV

Cannabis Science CBIS – currently have two products under development

i.Cancer
ii.HIV/AIDS

Nuvilex Inc. NVLX – recently announced success using their patented Cell-in-a-Box to develop cannabis based therapies.
Medical Marijuana Inc. MJNA – sells assortment of medical marijuana products through subsidiaries.
Cannavest Corp CANV – Refines Cannabidoil from hemp for MJNA.

The Canadian Medical Marijuana Market

Now it is not all rosy for everyone.

The Canadian medical marijuana market is about to become NON-EXISTENT.   Canada used to be a leader in access to medical marijuana and the fact the program had 40,000 people was proof of this success in providing patients access to medical marijuana. The program was not without its problems and it had a criminal element abusing the system growing 1000’s of plants on a license meant for 25 to 50 plants.

Since, then the conservative government has thought better to eliminate the personal production of patient’s medical marijuana. This is an EVEN BIGGER CRIME than those who growing marijuana. After all, a drug dealer is only a Libertarian Capitalist. He is serving a market need irrespective of outdated and antiquated government law which can lag society by 40 years like we have with the cannabis issue.

Most of these patients are on disability and are now going to be forced to pay as much as 10 times the price of what I cost them to grow personally.   For most this is completely barring access to their medicine unless they choose to break the law. In addition these laws prey on the poor, the sick and the most disadvantaged people in society and do nothing but further instigate class warfare in Canada. They do nothing to actually take the criminal element off the street or out of the community growing marijuana. IT DOES NOTHING TO DO THAT.
And arguably it doesn’t even make it easier for the system to prosecute criminals because the court systems are now going to be clogged up with medical patients being prosecuted for growing their medicine. This is a major travesty.

Do the RCMP think a criminal operation is going to stay at the same address especially after the Health Canada privacy breach? NO.   A person who is sick and is growing their medicine will though!!!

Here in Canada the government is setting this industry up for disaster.   And ask yourself why? All to satisfy a small, uber religious base in Western Canada that does not reflect society’s popular opinions or beliefs… and people wonder why I say overtly religious people should be barred from politics?

They CANNOT put their personal beliefs aside for the better of the country.

CANADIAN GOVT BANS THE CURE FOR CANCER APRIL 1^st.

As of April 1^st, any cannabis product other than raw weed will be illegal. That means RSO is illegal. The medicine I use, shatter is illegal. Any oil is illegal. This includes Rick Simpson Oil; which you make by taking an ounce of weed’ soaking it in Everclear or 99% isopropyl, and cook the solution in a rice cooker.

Viola, you have what many people are now using to cure their own cancer.

This as of April 1^st in Canada is no illegal.

The more concerning thing regarding this industry is that I am convinced as cannabis science is developed and progresses… no one will ever recommend RAW WEED as medicine. So if you are under the same belief as I am… the Medical Marijuana market in Canada goes underground April1st 2014 thanks to the Canadian govt.

My Personal Experience with Concentrates

As of September I was almost forced off Cannabinoid therapy because of severe allergies to marijuana smoke that included hayfever and sinusitis. I posted on my website last year that raw weed wsn’t working for me and I needed to increase my dose. Not decrease it! When the FEDs announced the new rules including a ban on concentrates the BC courts immediately brought in an injunction which actually paved the way for my Compassion Club to offer a variety of concentrates.   I didn’t even hesitate to switch. It was a no brainer.
In the 5 months since… My sinusitis is virtually eliminated.

In fact because of the switch, I have been able to significantly increase my dose which has virtually eliminated other problems I was having like initial signs of HIV dementia. Since I switched… I have undeniably got my brain back. Not only that, but my 10km run time went from 44:00 to 40:00!!!

There is no way after my experience switching from raw weed to vaporizing concentrates (shatter/budder) that anyone can tell me raw weed smoke is ideal cannabinoid therapy delivery.   It simply is not. In fact raw weed smoke is by far and away the most inefficient AND unhealthiest way to consume cannabinoids.

The only reason you should EVER smoke marijuana is for recreational use!!!

Because the system denies access at the expense of patients’ and further eliminates true cannabinoid therapy products… the Canadian GOVT has set up Canadian LP’s to fail. I cannot and will not recommend a single Canadian company until they develop a system that works for both patients’ and companies and allows the true medical marijuana industry to thrive in Canada. Not this fake program the FED’s are setting up. The current rules to not allow for this and in fact violate a patient’s constitutional right to reasonable access.
I am all for the commercialization of medical marijuana in Canada. What I am not for is the fact that it is being done at the expense of the patient who cannot afford access. This is a fundamental UN right/guideline regarding medical marijuana, being that cannabis is a cheap financial alternative to pharmaceuticals simply because a patient can grow it! Not only is the Canadian GOVT contravening its own laws, it is contravening UN guidelines regarding medical marijuana.

There is a very simply solution in Canada that allows for both patients to grow and LP’s to thrive.

Allow all marijuana products
Create a cap for personal production at the proper dose for one cancer treatment (6 to 8 ounces per month or a 25 to 30 plant max).
If a patient requires higher doses. Set up a program that allows an LP to grow for the patient at a $2 to $3 per gram price (this could be subsidized by GOVT).
Allow Medical Marijuana retail outlets similar to the California which supply ALL the latest cannabis products. Not just raw wed and not just a mail program. A real business has a storefront.

See how easy it to have a system that works for both? It doesn’t have to be one or the other. The cap will eliminate the criminal element and patients are free to grow a room full of plants which will suit 99% of former MMAR patients who wish to continue to grow.   With companies developing true medical products, that is when and where the true advancements in cannabis medicine can take hold. That is where the major money is going to be. If prohibition wasn’t around… marijuana would be $1 to $3 per gram. Not $10 to $15. This is the real reason why patients have to continue to grow their own…

PROHITIBION SIMPLY MAKES THE COST OF BUYING A POUND OF WEED TO CURE YOUR OWN CANCER UNAFFORDABLE AND OUT OF REACH FOR MOST.

The opportunity is there for any Canadian company to take the challenge if they want to do it the right way. But they have to take a market leader role and they have to challenge the Canadian GOVT on the DRACONIAN RULES about to be introduced. More importantly have to come out in support of patients’ right to grow.

Until this issue is solved. I cannot and will not involve myself in the Canadian cannabis industry and I suggest anyone who wants to invest in cannabis look south for companies, because what we got up here is a joke and will not be able to compete against their US counterparts who are doing it right!!!   Not like a Canadian LP… it’s just bad karma to invest in such a socially irresponsible area right now.   In fact any US company with plans on developing a Canadian LP… I will ignore as well.

The issue is so far out of whack that you have the opposition in Canada saying they are going to outright legalize marijuana.   That is how screwed up and OFFSIDE the current Canadian GOVT is on this issue.   They have gone so far off track… when they lose power the Liberals come in and legalize it. But that is what happens when things get so far out of balance and leaders become way too far out of touch with reality, let alone the people they are supposed to govern.

#2 The Recreational Market

This is the market where you are going to get the marijuana version of Anheuser-Busch BUD or Philip Morris PM. Simply put, this market is going to grow to rival alcohol and cigarettes. Recreational marijuana is why alcohol and tobacco have given billions in lobby money to the US GOVT.   The recreational market is still on limbo as two states can’t support the lofty valuations we are hunting down, but it is certainly a start and most likely the catalyzing event for legalization of marijuana across the US. Alaska is voting on legalization this summer and the issue is going to keep appearing on almost all states voting cards. Once legalization is a foregone conclusion, and in my eye’s mind it already is, you will see the big boys enter this market.
Will a tobacco company switch to marijuana? Probably. So the early adopters in this industry need this ‘LIMBO’ head start.

The marijuana industry will start out more like craft brewing than anything else. So there will be a stage of merger and acquisition after this initial start-up phase peters out. Companies with a solid growth/acquisition plan will do the best in the long run, but right now we are still at the beginning of the initial run-up phase that will last another 12 to 18 months, so companies are still making initial acquisitions and feeling each other and testing the markets.

My first pick in the sector that I believe is heading for greatness and possibly the BUD of POT stocks is PLPL. This could be a Microsoft repeat, but with marijuana. Plandai Technology have partnered with former Microsoft exec Jamen Shively who is resurrecting his grandfather’s cannabis company “Diego Pellicer”, a hemp company with a long rich history beginning in the late 1800’s. At one time Diego Pellicer was the largest hemp grower in the world. This is not just any old brand name Jamen Shively is resurrecting; this was one of the biggest hemp companies in the world at its time.

If Jamen plays his cards right, Diego Pellicer will be reincarnate and on track as a market leader as one of the biggest hemp/marijuana companies in the world once again. I am not going to bet against him as this person understands marketing. He understands branding and has brought together the right partners with already $15M in institutional investment.
By far and away one of the largest investments made in a marijuana company to date.

Jamen is quite aggressive and has already stated his intent to make Diego Pellicer into the Starbucks of Marijuana. In order to do this he is going to have to implement a merger and acquisition model to gain market share and ensure his brand is the best. Plandai Biotechnology is the early front runner. PLPL is not cheap at a $150M market cap. But again I expect his company to be a buyer and grow by acquisition.

The big keys to success will be …

Marketing of course.
Branding is big.
Mergers and acquisitions.

As the legalization process opens up across America.   Recreational marijuana is a sector I will more openly start to pick, but for now it’s all about medical marijuana. PLPL is the logical choice for a top recreational stock with the history of the brand and the fact you have one of the top executives in any industry leading the marijuana charge.

#3 HEMP Market

One of the biggest things to happen in the Hemp Industry in 2014 was Barak Obama signing the new Farm Bill in Michigan last Friday Feb. 7 with little fanfare. This precedent setting legislation basically brings back legal hemp agriculture in the USA after being banned for more than 4 decades.    In the $956.4B Farm Bill is an amendment that allows universities and state agricultural departments to grow and research industrial properties without fear of reprisal from the federal government.   While this only seems like a small step to hemp legalization in the US; it is the first time since the 1970 Controlled Substances Act that industrial hemp has been defined by federal law which was banned along with marijuana in spite of the fact that industrial hemp has very little THC; the only psychoactive ingredient in the cannabis plant.

What it means in the long run is it is the first step in the legalization process of industrial hemp which is now being defined by the FEDS as different from marijuana. It means that Industrial Hemp could easily be taken out of the controlled substances act or may even not need to because it now has its own classification whose definition isn’t included in the Controlled Substances Act. The Farm Bill is only temporary classification of industrial hemp for 5 years, but The Industrial Hemp Farming Act is currently before the House and the Senate which would reclassify hemp permanently.

Legal hemp in the US is just around the corner and when the GOVT ratifies the Industrial Hemp Farming Act. This will start a whole new industry in the USA. The global market for hemp includes some 25,000 products. That is some raw material eh? Hemp is undeniably the most versatile plant in the planet.   No other plant we harvest has more uses than the hemp plant.   Current US market is estimated at $500 million annually and this would grow exponentially once industrial hemp is legalized in the USA.

HEMP is NUTRITION.
HEMP is FIBER.
HEMP is FUEL.

Hemp as Nutrition

Hemp hearts are one of the healthiest things you can eat. For a vegan, hemp hearts are a saving grace because they are one of the most complete proteins. A spoonful of hemp hearts on your yogurt is about 10 grams of protein. They are also loaded with important fatty acids like Omega 3 and Omega 6’s.

Essentially, hemp hearts as a protein source are healthier than fish. And that doesn’t count for the fact you are eating raw cannabinoids which in their raw form help the Endocannabinoid system rebalance your body. The hemp plant is a very important nutritional source that if consumed on mass will make all of us healthier and probably cut down on health care costs. Eating hemp as nutrition will have such a positive impact that we will not get as sick and when we do… it won’t be for as long.

While I cannot at this time recommend Canadian companies in the in the medical marijuana field because they are not true marijuana companies, Naturally Splendid NSP.V is a Canadian Hemp nutrition company that will benefit as the revolution in hemp continues to expand.

Hemp as Fiber

I bought a hoodie that is made with 50% hemp and 50% cotton. I have never worn a warmer sweater in my life. The big problem with hemp is that it is still very expensive. Hemp protein is not cheap and my biggest hope is that the cost of many of these products comes down to a reasonable level as more hemp is grown in North America. The price hemp is still makes it out of reach for most budgets including mine.

Industrial Hemp to Start a Bio Fuel Revolution?

It is still early but my biggest idea coming out of the industrial hemp sector is that HEMP could lead a renewed biofuel boom like we saw with ethanol a few years back. There is one big difference though. Ethanol is an additive while Hemp oil can be converted into 100% fuel completely cutting gasoline out of the equation as fuel. I am a huge proponent of Electric Vehicles obviously.   I will always be. But I am a realist and people are going to drive internal combustion engines until they drop dead and can’t be fixed.

HEMP fuel could be a solution to allow internal combustions engines to at least not be such carbon taxing machines.

Not only do you cut out gasoline from tar sands where they are cutting down the Taiga which cleans our atmosphere… the hemp crops we plant for fuel will clean our air. The opposite of fuel form the dirty tar sands. How about that… a fuel that has close to a zero carbon impact!?!?! You get 4 times as much fuel per acre than corn and again, it’s a fuel that replaces gasoline and is not just an additive.

Cannabidoil CBD…The Primary Cancer Killing Cannabinoid?

On my Facebook a few weeks back a FB friend from Texas, (an UBER conservative Facebook at that) announced he had cancer in his hip. So me being the chatty person I am kept posting about Rick Simpson Oil RSO on his cancer posts.   After the third time or so one of his relatives says…

“Just get him some oil!!!”

Now the big thing I took out of that was even the most uber right wing gun toting conservative in Texas is open to the idea of cannabis curing cancer. I can’t exactly counsel the guy to commit a crime in Texas where medical marijuana isn’t even legal, knowing Texas law, they would try and charge me with a crime and extradite me for life imprisonment… but it got me to thinking.

What might work for the guy?

I ended up on Medical Marijuana’s subsidiary HempMedsPX which sells Real Scientific Hemp Oil RSHO. It isn’t Rick Simpson Oil RSO, which is extracted from the marijuana plant vs. the hemp plant; but concentrated hemp oil has similar concentrations of non-psychoactive Cannabidoil CBD which has been shown to work against skin cancer. CBD is what many believe is the primary cancer killing cannabinoid. The BIG THING is that Real Scientific Hemp Oil is processed from hemp therefore has no THC and is LEGAL to ship to all 50 states in the USA.   Now I don’t want to suggest to anyone that MJNA and CANV’s RSHO can cure cancer without providing evidence.

BUT…

Is Medical Marijuana Inc. unwittingly or even knowingly sitting on the cure for cancer???

Your guess is as good as mine. I have no idea. All I know is that my whole life I have been putting two and two together and the answer always comes up the same, 4. I am not sure about the actual concentrations of oil they have but 17% to 21% CBD in the plant is similar CBD concentrations in the marijuana plant. It would be very interesting to see the effects done on cancer patients with between these two products. When know RSO works. Does RSHO do the same thing in high enough concentrations?

http://finance.yahoo.com/news/photo-release-medical-marijuana-inc-140000662.html

Will common sense prevail and Scientific Method rule where sanity and common sense have so far eluded us in favor of old bias and drug war propaganda?    We will soon find out because there are no legality issues with RSHO.   The big question I have is RSHO concentrated enough?

All I know is that CBD plays a major role in the cancer cell death process and has shown to stop metastasis in breast cancer cells as well as curing melanoma. There is no reason not to believe RSHO could be the real deal. The fact the HempMedsPX sales jumped 500% in the last quarter shows signs there is interest in cannabinoid based products although I don’t think RSHO is the company’s top selling product. Now MJNA could never advertise this even if they did suspect they have the cure for cancer until they actually have studies and testimonies… but there are enough clues that point to a positive conclusion of this hypothesis that RSHO could help at least as part of a cancer therapy. As the word gets out about cannabis curing cancer, I think many will turn to HempMedPX’s RSHO at least supplement their cancer treatments.    It is not cheap, but you can order it online and have it delivered to your home.

So while the process at ending prohibition will be somewhat drawn out over the next decade and not everyone will have access to Rick Simpson Oil at the same time. MJNA’s Real Scientific Hemp Oil comes in a close second with high concentrations of CBD, just no THC. It is true both cannabinoids kill cancer cells. Not to over simplify the process, but THC kills cancer cells directly while CBD makes them commit suicide. The cancer killing properties are unique to each cannabinoid.

There is no doubt in my mind cannabis cures cancer and CBD plays a major role in the process. If CBD can kill cancer cells on its own, RSHO should work.

http://realscientifichempoil.com/

The MJNA/CANV relationship

So how does the CANV/MJNA relationship work?

In a nutshell MJNA sold CANV PhystoSphere for $35M in cash and stock (mostly stock); about 5.8M shares worth. CANV imports hemp paste and then refines it into Real Scientific Hemp Oil and other CBD products like anti-aging skin creams, and tinctures and then wholesales it to MJNA. MJNA then retails the CDB products through their subsidiary HempMedsPX.   Currently CANV and MJNA market caps are upside down. MJNA should have the billion dollar valuation while CANV should be closer to a quarter of billion than the lofty $1.6B valuation the company now enjoys.

CANV does not have a lot of liquidity and is one reason the stock is so high feeding off of marijuana euphoria. I don’t know if I would short it because growth stocks can enjoy insane premiums and if the market views the stock as continually growing it will reward the company in SP while the market is in its infancy. Just look at the 3D printing stock valuations. At 24M shares outstanding, I cannot see this as more than a $10 to $30 stock in true value. The $70 SP it currently enjoys is beyond what I call a good place to buy the stock with very little revenue. I don’t see MJNA or any of the other majority shareholders selling out any time soon so you either own it or you don’t.   If you bought at $30 or under, it’s easy to hold… but I don’t know if I would initiate new positions at the current price.

At any rate…I view MJNA as the bargain in the sector.

When you know what I know about CBD, you know the future is very bright. The problem is gauging how fast and how viral CDB goes? Will Doctor Oz go on Oprah jumping on couches exclaiming the wonders of CBD? If he does… MJNA and CANV sales will go ballistic.

What is very encouraging is HempMedsPX sales jumped 500% quarter over quarter and MJNA recently announced a $1.1M purchase order. It seems that revenue growth for MJNA concerning CBD is hitting a flashpoint and starting to take off. There is a lot of interest in the anti-aging cream. Of course cosmetics!!! Obviously follow up sales and continued growth are very important and next quarters numbers will be key to indicate if CBD as a product has lift off.   For now the market is going to enjoy the moment and the Euphoria of the marijuana sector being born. Is it time for MJNA to join the party and start making 52 week highs?

HempMedsPX revenue has quickly grown to represent almost 15% of the revenue of $8.07M for the quarter and I would not be surprised to see this trend to continue and where CDB product sales will ultimately drive top line revenue of the company. This type of growth is possible with CANV recently announcing a 1500% increase in production capacity.

At this point in time I think CANV is well over done while MJNA is relatively undervalued compared to its peers and not just CANV.

The biggest sector move since TECH

This is undeniably the beginning of the biggest move in any sector since tech.

The bullish run in pot stocks in 2014 is real… let others worry. I am going to climb it. Are you?

After reading this article and the potential of the industry are you going to tell me that the run up isn’t real?

Just read any of the articles bashing the pot stocks. They don’t understand what is going on. They think this is about legal pot. Yeah, that is part of it for sure and it’s going to happen… but this run up is a heck of a lot more than that. This is about being on the verge of making breakthroughs in many different diseases with cannabinoids. This is about an alternative energy revolution. It’s about changing your health, everyone’s health and hemp based food products play a huge role in that.

OUR BODIES NEED CANNABINOIDS!!!

So now you want the okay from Big Brother Uncle Sam to invest in this sector?

On Friday the Obama Administration released new rules that aim to ease relationships between banks and LEGAL marijuana shops. So far the final pin in the wheel to make everything work is marijuana companies have not been able to deposit funds and the new rules basically give the okay from banks to accept POT PROFITS from the legal medical and recreational cannabis industries in the USA.

This may not seem like a lot for most people and just a small piece of news, but if you read between the lines this is basically Obama saying to Wall Street that it is okay to invest in this industry and the GOVT is not going to take the profits or capital. One of the big things about capital is it is risk adverse and the fact that that the GOVT might seize your funds and assets at any time was just too much for most.

This risk was virtually eliminated Friday.

Ultimately cannabis stocks were moved up the risk curve by a factor of 10 and if you don’t think so… just watch Wall Street’s reaction to this move over the following month or two… if you thought January was insane… just watch the next 2 or 3 months going into May. This is a catalyzing event for the investment community and ultimately paves the legalization process forward in many states removing a huge obstacle to the business of cannabis.

All you have to do is learn about the Endocannabinoid system and make the connection like I did almost 8 years ago.

Some clear winners of this legislation are the marijuana transaction stocks like…

Mediswipe MWIP
SinglePoint SING
Tranzbyte ERBB
Medical Cannabis Payment Solutions REFG

The reality is that the ENTIRE INDUSTRY IS GOING TO BENEFIT AND MAYBE MJNA will now turn into the market leader as WALL STREET money is safe from the DEA, FBI, and CIA.
I think president Obama will declassify cannabis as a schedule 1 drug by the end of his presidency. It will be one of his legacies. If the powers that be can nominate Jose Mujica President of Uruguay for a Nobel Peace Prize for being the first leader of a country in the world to legalize cannabis… what will they do for the leader of the free world when he legalizes cannabis?
Make him a God?

If Cannabis does half what I indicate it does in the BIG 4 HOLY GRAILS of MEDICAL MARIJUANA that I outlined above, you cannot argue with how important legalization is.

If HEMP starts a biofuel revolution cutting gasoline use while we switch over to electric… he will have done some Al Gore still has yet to do.

Actually do something about the environment.

You know how the say Al Gore invented the internet? They are going to say the same thing about Obama.

They guy who saved the environment with HEMP.
The guy who legalized the cure for cancer.

Actually let me rephrase that not THE GUY… but THE MAN. There has never been a bigger chance for any one man on Earth to make a big impact with one failing swoop of legislation. In fact, if Cannabinoids can do all this stuff. It might make medicare in the US work. You might find people, just not needing to use the system anymore, people like me who hasn’t been to a doctor in almost 3 years.

And I am supposed to be a chronic user costing the system over $20k a year in health care costs.
The bottom line is the time to invest in cannabis stocks is finally here.

I am jumping at the opportunity.

How about you?

Christopher Skidmore

Beat the Market Stock Picks

Company	Stock Symbol	Share Price	Shares Outstanding	Market Cap	Description

Cannavest Corp	CANV	$69.00	*23,952,167	$1.72B	Manufacture and sale of industrial Cannabidoil source from the Hemp plant. Growth by acquisition model. - PhytoSPHERE Systems recently announced a 1500% increase in industrial Hemp Oil production capacity.
Medical Marijuana	MJNA	$0.315	301,339,332	$298.5M	Own several hemp and medical marijuana based subsidiaries
GW Pharmaceuticals Plc	GWPH	$61.57	14,830,307	$912.22M	Producing novel cannabinoid drugs for afflictions such as cancer, MS and diabetes.
Cannabis Science	CBIS	$0.1829	761,323,906	$139.25M	Specializes in Cannabis-based pharmaceutical development focusing on novel AIDS and Cancer drugs.
Nuvilex	NVLX	$0.169	593,411,348	$100.29M	Using proprietary Cell-in-a-Box technology to develop cannabis based cancer treatments
Planda Biotech *top public pick*	PLPL	$1.53	106,320,760	$162.67M	Licensed “Diego Pellicer Gold” extracts in both capsules and cannabis oil to medicinal consumers wordwide. Partnered with former Microsoft turned marijuana exec Jamen Shively. - Have proprietary hydrodynamic shearing process to produce extracts.
Endocan Corporation	ENDO	$0.1135	67,886,647	$7.71M	Developing new natural cannabis-based products on innovative formulations that utilize the unique benefits of the cannabis plant.
MediSwipe Inc.	MWIP	$0.41	45,010,155	$18.45M	Critical payments and records technology. Sells hemp-based beverages and owns the *Mont Blunt Vaporizers* and e cig product brands.
Mentor Capital	MNTR	$2.95	6,419,312	$18.93M	Hydroponics and organics markets. Regulatory and financing transactions (GIFT program). Acquisition model hydroponic stores and financing large scale legal grow operations.
Medbox Inc.	MDBX	$31.75	14,475,375	$468.76M	Provides comprehensive solutions to the cannabis industry including patented MedBox dispensing technology.
Growlife Inc.	PHOT	$0.38	711,855,833	$270.5M	Public market funding for cannabis -GRNH, ERBB, CBDS, GWPH, MDBX, CANV, MJNA, -Nevada Cannabis Ventures
Fusion Pharm Inc.	FSPM	$5.00	8,019,191	$40.1M	Develops and markets patented PharmPods which are advanced hydroponic cultivation systems constructed from standard steel shipping containers. Collaborating with Growlife.
Cannabis Sativa	CBDS	$9.22	7,825,000	$72.15M	Targeting ‘medical marijuana’, acquiring super potent marijuana strains. Headed by none other than renowned marijuana activist Steve Kubby.
IMD Companies	ICBU	$0.114	161,405,162	$18.4M	Hydroponic equipment through their hydroponic subsidiary. Actively looking for more marijuana acquisitions. Jointly owns GreenLink Inc. with EXMT which is an online marijuana e-commerce including e-cigs.
Medical Cannabis Payment Systems	REFG	$0.2365	75,148,731	$17.78M	Payment solutions. Mobile apps. Seed to sale CRM.
HPC POS Systems	HPCS	$0.0275	3,858,523,393	$106.1M	Announced entering the market with *Cool Breez MM* e-cigs/vaporizers and developing edibles, cosmetics, software, and e-commerce.
Alternative Energy Initiatives	AEGY	0.0073	2,628,664,335	19.19M	Marijuana E-commerce site. Legally sells medical marijuana at www.PharmaJanes.com.
Latteno Food Corp	LATF	$0.0098	1,809,425,314	$17.73M	Company acquires cannabis/hemp based food products and medical marijuana edibles and related products/services to enhance revenue potential/growth.
VaporBrands Intl. Inc.	VAPR	$0.257	70,061,606	$18.01M	Market Hemp Oil in electronic cigarettes produced by HEMP subsidiary (Marijuana Inc.)
Tranzbyte Corp	ERBB	0.0303	2,854,334,150	$60M	Focuses on transaction related solutions to the medical marijuana industry.
Advanced Cannabis Solutions Inc.	CANN	$12.25	15,097,200	$185M	Provides comprehensive solutions to the cannabis industry including investing in property to lease for cannabis cultivation.
HEMP Inc.	HEMP	$0.15	1,649,949,387	$250M	Own several subsidiaries (Basic Hemp/Herbagenix) that provide hemp/algae based nutritional and provide cannabis/hemp products through Marijuana Inc.
SinglePoint Inc.	SING	$0.04	232,371,213	$9M	Develops state-of-the-art mobile payment systems for the cannabis and medical marijuana industries.

List of Diseases Marijuana Treats

ALS (Lou Gehrig’s Disease)
Alzheimer’s
Amyloidosis
Anorexia Nervosa / Appetite
Arthritis
Arthropathy
Asthma
ADHD
Autism
Asperger’s
Auto –Immune Diseases
Bipolar disorder
Burns
Cancer – Effective against all cancer
1. Malignant Melanoma or any skin cancer
2. Prostate Cancer
3. Testicular Cancer
4. Adrenal Cortical Cancer
5. Brain Malignant Tumor
6. Lymphoma and Reticular Cancer
7. Leukemia
Chemotherapy Convales
Cystic Fibrosis
Depression
Diabetes Mellitus
1. Diabetic Neuropathy
2. Diabetic Peripheral Vascular Disease
Delirium Tremens+
Dementia
Depression (Single Episode and Recurring)
Emphysema
Epilepsy
Eczema
Fibromyalgia (FM or FMS)
Glaucoma
Glioblastoma Mulitforme
Glioma
Gout
Hemopjilia A
Henoch-Schoelein Purphur
Hepatitis C
Herpes (genital)
High Blood Pressure
HIV
Huntington’s Disease
Hypoglycemia(s)
Incontinence
Insomnia
Irritable Bowel Syndrome (IBS)
Lipomatosis
Lyme Disease
Mania
Methicillin – Resistant Staphyococcus Aureus (MRSA) or STAPH INFECTIONS
Migraines
Mucopolysaccharidosis
Multiple Sclerosis
Nausea & Vomiting
Obesity (Exogenous and Morbid)
Osteoporosis
Pain Relief (Analgesia)
Parkinson’s Syndrome
Post-Polio Syndrome
Post-Traumatic Stress Disorder (PTSD)
Pregnancy
Premenstrual Syndrome (PMS)
Pruritus
Psoriasis
Reiter’s Syndrome
Schizophrenia(s)
Schizoaffective Disorder
Shingles
Sickle Cell Disease
Spinal Cord Injuries
Tourette’s Syndrome

The potential markets keep going on and on and on. In fact there are over 700 documented ailments/diseases/symptoms that cannabis and its cannabinoids treat.

http://www.encod.org/info/700-MEDICINAL-USES-OF-CANNABIS.html

Tuesday, January 7, 2014

Market Melt-up in Progress

Posted to Premium Subscribers Nov. 7, 2013

It seems like the US government shutdown has put pretty much everything on hold. The US stock market was on ‘PAUSE’, tapering has been pushed back until March, and yields remain depressed.   Any incentive to rotate from yield into more growth oriented stocks has been taken away. As tapering rumors started last spring persisted, you saw a clear rotation into more risk adverse stocks. Growth stocks like FB, LNKD started to lead the sector rotation are now consolidation while yields remain depressed.

What the shutdown did do was ensure the status quo for another 6 months. It is actually healthy, creating a strong base for next launching pad which seems to be starting this in early November. The great ‘meltup’ is beginning, lack of sellers in the market, continued confidence and QE is ensuring that this market will end the year at record highs. The INDU, which was topping out on fear of tapering has a new breath of life.   Yield seekers continue to dominate the market, the US banks will continue to lead the way; cyclicals will start to show life’ signalling we are on the verge of the next leg in this bull market.    Yes, I said next leg in this bull market. I fully expect the global indexes to reach record highs over the next few years as Europe comes out of recession with the US continuing to lead the economic recovery.
The big question that everyone wants to know is what will tapering do to the markets when it happens?

I see many headlines saying that this a QE fueled market. Well it is. But it is more than that. The markets are at a point where they are damned if you do and damned if you don’t. Except this case damned to go higher no matter what happens scenario. The only chance I give of market going lower is if we have an absolute unforeseen economic collapse on a magnitude similar to 2008.
Well guess what people? Chances of that happening are 0%.

Will the markets drop like gold? I doubt it. If they were going to, they would have already done so in advance like gold has done. What it means is most people are looking for a continued recovery in the segment called “life after QE”… starring of course FED Chair Janet Yellen.

The big concern at the FED isn’t going to be the stimulus and cutting back and potential inflation and jobs. No they are not concerned about how the FED can taper and still maintain control of interest rates. When rates spiked this summer on taper talk, I took notice. I also took notice on how fast Ben came out to jawbone rates lower when he basically did a complete 180 on policy within days.   In reality, the language used this summer was most likely a test to see what would happen to rates if they did taper and the FED got their answer. So Janet’s task is huge… how to taper, but at the same time talk interest rates down.

Can she do it? If she does… she should look for a second career in Hollywood after her term at the FED is done.

Wife Pimper to Continue

In early 2012 I wrote an article describing a ‘wife pimper’ rally ahead of us. So after 20 months is it over? Hell no. The ‘wife pimping’ part of the rally is still yet to begin.   Some people on Wallstreet call it a face ripper… but those people have a shallow understanding of the market. It’s a ‘Wife Pimper’.

What do I mean about wife pimping?

Well… desperate times call for desperate measures… and in desperate times when you need money… you do desperate things… like pimp out your wife. That extra $100 could turn into a Ferrari if you get it into the market quick enough!!!
Are people really going out and pimping their wives and buying stock with the extra cash?

No. Well maybe some might do it, but generally if you are a person with somewhat normal values; it is probably not something that has crossed your mind. Who knows why it crosses my mind. What I am trying to get across about the rally is to try and get an accurate picture of the greed associated with these ‘face ripping’ ‘wife pimping’ type rallies.

What is driving this market to insane heights? Greed of course. What will eventually drive higher PE ratios into the market? Greed. What keeps people committed to a stock beyond what is anywhere near rational? Greed. When I talk about ‘wife pimping’, I am really trying to capture and describe the extent of the greed in the market. Now you really got to be one greedy muther fucker to pimp out your wife in any situation.

What is the saying about pigs getting slaughtered?

The notion of greed will drive a bull market well into the extra innings. It will drive this market for years to come. It is going to drive this market higher. The catalyst may be rising rates, it may be QE to infinity… who really knows the mind of the shadow US govt? A mind that seems to change on a whim these days.

What I do know is that the markets are breaking out to all-time highs AND THERE IS NOTHING HOLDING THESE MARKETS BACK. NOTHING.

Wife pimping literally translates that you will do anything to get into the market. Literally anything. Including pimping out your wife. What would real life signs of pimping out your wife be? Maybe mortgaging your entire house 3 times to get maximum leverage in the market. Who knows? What I do know is that we are nowhere near that type of sentiment, but at some point I expect to get there.

A Correction Coming?

Not in this Damned if you do and Damned if you don’t market.

No tapering = stock markets go higher
Tapering means = Stock markets go higher.

At any rate, when I am seeing typical rotation into higher risk growth oriented stocks, these are signs that the next leg in the bull market is about to begin.   These are signs that the US recovery will continue well into 2014 /2015 and most likely right through to 2020 with little pause for thought or reflection here and there like we have now.

What is the invisible hand behind this market that will scoop up any sell-off?

Rising rates set to push Equities into the Stratosphere

How is this possible in a rising interest rate environment? It really seems contrary to common economic logic. Right? Higher interest rates usually mean a slower economy which means equities enter a bear market. Well that is true in a normal economy with normal interest rates.

Rates simply are anything but normal.

Rates are so low and so compressed that pretty much any and all debt are extremely exposed at these record low interest rates. This is the underlying invisible hand pushing up the market. Any jump in rates is going to annihilate the principal on a lot of debt as everything gets revalued for increasing rates. Even treasuries are going to get hit at first. The first leg of the bull market was driven by yield and value seekers. Those guys are still in happy they got high yielding investments and will never exit those positions as long as rates are this low. They certainly won’t be buying debt until rates have somewhat normalized.

Many investors will seek to ‘weather the storm’ in the equities markets. Simply put, for many investors who are seeking to protect their principal, there is no alternative investment except equities or cash.

During a period where interest rates are normalizing from artificially low which in this case is zero…. It really is like one big science experiment in action. We have never been here before so one can’t really tell you what is going to happen.   What I do know is the greedy pigs in the debt market after 30 years are about to get slaughtered. Rates cannot stay lower forever and as soon as tapering happens… rates will rise no matter what the FED sets the treasury rate at.

So if you are a bond holder… are you confident in Janet Yellen’s ability to jawbone the market while she tapers? This is going to be very interesting to see how much control they have when they are not printing money and buying all the surplus treasuries.

Will rising interest rates squash economic growth?

The answer simply is no. Normalization will have minimal impact on the economy. Rates are so low, banks have had zero incentive to lend.   In fact increased rates may even provide incentive for increased bank lending to small business because increased reward means banks will take larger risks. Rates are so far below historical norms there is zero lending to small business. Leveraging small business is what really drives the economy.   Sure banks are lending to corporations, but those loans are not for growth oriented operations, but more for corporations taking advantage of super cheap borrowing costs in simple accounting decisions. These loans do nothing to leverage the economy but rather streamline a company’s balance sheet and income statement with historical low borrowing costs simply by locking in ‘free money’ and take advantage of low rates courtesy of Alan Greenspan and now Ben Bernanke.

The bottom line is that if interest rates rise, banks may have more incentive to lend to small business therefore enhancing economic growth in a rising interest rate environment.   Lending to corporations does not leverage the economy. Lending to small business does. Even a jump of 1.5 to 2% over 2 to 3 years would do no harm and most likely increase bank lending to small business which would thus give the economy the shot in the arm it needs when it comes to growth.

Don’t cut taxes. Don’t give out lucrative subsidies. Just allow things to normalize and guess what…?

The US economy will continue to motor along

The last 4 years since March, 2009, the markets have continually climbed a ‘Wall of Worry’.   The market has rallied on extremely discounted prices and value and has been driven up on the backs of yield seekers who are desperately seeking income.   The markets will continue to climb that wall of worry as tapering worries and fears that markets need the punch bowl. Hell no. What the markets need is the punch bowl taken away.

Forget about any type of meaningful correction.
Forget about savers leaving the market and taking profits.
Forget about low growth meaning markets can’t rise.
Forget about PE ratios staying in bear market territory. Hell, when it’s all said and done… we may have P/E ratios at record highs and analysts calling the market cheap.

Markets will continue to climb the wall of worry. We may even be at a crux of a sentiment change in the market where the ‘wall of worry’ disappears entirely into the all out wife pimping bull I described… but even if it doesn’t… this is a market that is lacking sellers and will melt up at a moment’s notice.

I think tapering and rates easing up will help the meltup and provide a perfect catalyst as debt holders look for creative ways to protect their capital. What better way than participating in one of the greatest bull runs in a generation? But that is just me.

Social Media Tech Stocks Leading Sector Rotation

One signal I am getting is the massive push in social media tech stocks. This is something that is more than a FAD. For many people these social media stocks are a way of life. They are not going away and are just at the beginning of being able to monetize these massive information assets. The fact that social media stocks are on the rise and in favor means that investors see an environment of growth and lower risk for years, and not just 12 months out. This is a sign of a very healthy market and one that is slowly pushing out on the risk curve into growth bellweathers such as Facebook and LinkedIn. This is definitely confirmation you want to rotate into more cyclical and growth oriented names, unfortunately in Canada, cyclical stocks means materials, which for the most part are not going to participate and are not going to come along for the ride like they have in the past 10 years. The developed world is powering ahead… not the developing world.
FB traded above $50 briefly, Groupon has also been a success story this year and LinkedIn continues to power higher. The $14B Twitter IPO is perfectly timed taking advantage of a healthy sector that looks to continue to grow with little investment alternative in the sector. The timing gives Twitter a huge runway/launching pad to run with the bulls. Even at the revised IPO price, there is ample room for Twitter to run. Its financials are poor, but on the other hand, Twitter brand power and reach which gives it huge potential if properly monetized.   If you are going to own social media… you have to own the big 3 which means you own FB, LinkedIn and Twitter.    That being said…. Twitter still has to prove a revenue model.

Over the short term I favor Twitter over FB and LinkedIn which have already gone on massive runs this year and are not priced for entry or re-entry. Twitter on the other hand is priced for entry and ready to rock and roll and take advantage of momentum and hype while FB and LNKD find better entry points for 2014 buyers.   If you are looking at entry prices for these companies, FB entry looks between $38 to $40 and may test the IPO price while LNKD entry would be sub $200 preferably near the 50 and 200 day moving averages.   I might be dreaming on FB touching its IPO price. Revenue is how you should value these companies and their corresponding year over year revenue growth and the revenue potential for these companies is staggering and for Facebook…. GOOGLE-like. These companies have for the most part locked in users for the rest of their lives. Facebook has how many habitual users? Do you know how valuable that is?

Just from personal experience and the ads I experience on Facebook, I am much more receptive to the ones on Facebook than most other sites. Sometimes I even click on them simply because they are targeted and non-invasive. Most other sites when an ad comes on, I mute and look at another web page for a minute so while the ad plays while on Facebook, at least for me anyways are far more effective. In the long run, this type of advertising has much more value than a spot say on ESPN.com selling a car that targets 1 in every 1,000 people.   I even don’t mind them in my news feed if it has content and it’s relevant.   I think once tweaked, these ads will be more effective than paying for $1M TV commercials… especially when it comes to a direct relationship between increasing sales. Companies will eventually get it and Facebook will rule the advertising just because of the effectiveness of targeting a specific audience.

Facebook could have a revenue model that dwarfs Google simply because of efficacy. Twitter has the same type of potential with ads showing up in your twitter feed. The one problem I see with twitter is that they will have a harder time targeting their audience than Facebook simply because Facebook knows that much more about you.

The New Tech Stocks…

Company	Symbol	Share price	EPS	Revenue 2013	Year/year Growth	Market Cap

Facebook	FB	$48.69	$0.24	$7.4B	45%	$118B
LinkedIn	LNKD	$228.28	$0.33	$1.5B	55%	$23B
Twitter	TWTR	$23 - $25	N/A	$600M	N/A	$10B - $13B
Groupon	GRPN	$10.65	-$0.14	$2.2B	7%	$7.1B
Zynga	ZNGA	$3.71	-$0.08	$1.0B	(20%)	$2.4B
Yelp	YELP	$66.83	-$0.21	$230M	70%	$3.6B
Zillow	Z	$80.05	-$0.33	$200M	72%	$3B

So while tapering has been pushed back and yields continue to be pressed… sector rotation has paused. Yield hunters are back and the market will slowly churn forward.   FB and LNKD should correct, especially while the Twitter IPO shines during the month of November making those two stocks better entries in late November early December.   But I cannot stress the one company I would exposed to as early as tomorrow and taking a position in first is Twitter. Buy the IPO or wait; you may get it cheaper the first week it trades because generally you have profit takers from IPO shareholders who want to sell shares.

But how much and how eager to sell?

That is a mystery so the price could do anything. It really all depends on the appetite and how many inside sellers there market had to eat up. With FB… there was a tonne of insiders who were eager to take the money and run. What makes things even iffier is the fact the IPO priced was raised and on an earnings basis… TWITTER is more expensive than its peers. There is now a better chance that the price cannot sustain the initial hype, but this will be an excellent time to pursue an entry. Some say Twitter will double on the first day… I am skeptical… but who knows?   An entry of $20 would be ideal, but if it starts to run, buy it quick and don’t wait for a pullback. A pullback at $30 won’t get you an entry anywhere near if you bought chasing the stock in the initial days.   What is going to tell a lot about Twitter in the first year is how fast they grow revenue quarter over quarter.

The investing environment is ripe for these big social media names. The markets are looking to rotate and rising yields will force debt holders out of debt and into equities. Twitter could easily trade on par with FB when it comes to share price and all these stocks could trade at crazy valuations for years just because of the Perfect Strom that is on the horizon for equities. These are the high demand, hip names to own in the market. Well except maybe Zynga.   Zygna has not been so lucky to turn the tide of sentiment. It is pretty hard to convince the street that you can make money on a ‘free gaming model’ and have all but given up on pursuing a paid gaming model. With revenues dropping 20% this year, Zynga has lagged but the chart looks like it wants to break out over $4.

If Zynga wants to establish a free gaming model, I hope to see some acquisition to establish a commanding market share position and create a model where top app makers hope to get bought out by Zynga while establishing ad revenue and other in game paid features. If they can establish a top market presence, an ad revenue model could easily be established to derive revenue from free gaming model with millions of users. That is the one problem with Zynga… they promote users while the market is looking at the top line growth. The market is not convinced it can monetize those users are that they are worth as much as other social media stocks. The potential for Zynga is there. Execution is important and the company still needs to cut a lot of fat and firmly establish some sort of revenue model that encourages growth.

Thoughts on Uranium

Right now the uranium industry is holding its collective breathe.

Actually, it is not just the uranium industry, but anyone who cares about the health of our global ecosystem should be concerned. This summer TEPCO announced that thousands of gallons of radioactive water are leaking directly into the Pacific Ocean. Radiation levels are up everywhere, cesium has been detected in plankton in all ten areas tested across the Pacific, and 30 months after the initial disaster when the world thought we would be healing from Fukushima, the opposite is happening.
Fukushima is getting worse.

Until Fukushima is under control, there will be no relief for uranium stocks. FIS/AMW could be one of the biggest and shallowest and high grading discoveries in the Athabasca Basin and no one is going to care and currently is extremely undervalued considering the magnitude of the discovery, especially when compared to buyouts such as Hathor’s Roughrider which sold to Rio Tinto for almost $600M. With all the successful drilling this summer Fission should be at around $2, not $1. Alpha Minerals and Fission’s combined market cap is $300M and change. Only half of what Rio Tinto bought Hathor out for.

And PLS is infinitely better in every way….

In depth to surface.
In grade.
In zone width.
And even in strike length

There is no comparison. PLS is much higher grade. PLS has been traced along a much wider extend and the zone widths are massive when compared to Roughrider. Then you take into account that a lot of the mineralization is less than 100 meters to surface… there is nothing like PLS in the Athabasca Basin. PLS should at least be on par with Roughrider even before a 43-101 resource report based on the drill results and the metrics I suggested above.
But hence; you have Fukushima 30 months after the initial meltdown spewing radioactive material into the environment killing and maiming life thousands of kilometers away on the Pacific West Coast. We pretty much have the worst case scenario unfolding before our eyes.

Don’t believe me?

Here are 5 events this summer that speak otherwise that something is seriously wrong in the Pacific Ocean.

May 22… Researchers find high cesium in some Pacific plankton
June 29^th… Millions of krill wash up on Oregon, California beaches
August 16… DFO investigating reports of bleeding herring
October 24… Researcher: High death rate, ‘puzzling’ behavior in B.C. orcas
October 26… Biologists search for cause of sea start deaths

So with the revelation that Fukushima is still spewing radioactive material, there is just no way that this sector gets off the ground. Half the investment thesis revolves around the Japanese restarting nuclear operations. I don’t care what Jim Dines says about shivering in the dark, you can always add an extra layer of clothes. No big deal. Eventually other countries like Russia and China will pick up the slack, but 48 nuclear reactors going offline is the equivalent demand to the entire HEU program.

So let’s do the math…

432 nuclear reactors in operation before Fukushima.
384 reactors in operation today.
An 11% reduction in nuclear reactors.
Japan required 20M to 22M pounds per year.
HEU supplies approximately 24M pounds to the market. Net effect?

NIL without a nationwide restart of Japan’s nuclear program

Then you have to count for the fact that the market has 50M pounds of excess uranium accumulating for 30 months of production without 20M pounds annually from Japan… and it is no wonder the spot price of uranium has drifted under $40 to $35 and in reality… no sign of relief until the excess supply is taken off the table. And now Cameco has drastically shaped up operations and has dramatically reduced costs to $17.68 per lb making $34 quite profitable for the company while most Midwest USA mines and even in Namibia have a hard time competing against. Cameco is still forecasting a $50 uranium price, but the market is saying otherwise and I have a hard time believing $40 uranium is in the cards without a Japanese restart.

A Japanese Restart Likely?

I am not betting on one. Politicians usually go with the will of the people and on this subject the most damning piece of information regarding nuclear energy in Japan, a poll in 2012 put Japanese at 80% opposed to nuclear energy and no longer trusted their government regarding radiation information.   So much for Jim Dines theory about shivering in the dark. Apparently the Japanese have chosen to shiver in the dark. With Fukushima going off how it is; a huge cloud continues to loom over this sector.

And you think the worst is over?

The worst may still be yet to come. TEPCO last week accepted the US offer to help with the cleanup which will take years. Sometime this November TEPCO will be removing the fuel rods from Unit 4. One wrong move and horrific quantities of radiation could be released into the atmosphere or cause an explosion much worse than the original meltdown.   One of the biggest revelations yet have the World Nuclear Association coming out with a report stating radioactive materials released into the environment have been underestimated by the Japanese by a whopping 97%.

Nuclear is not somewhere I would be. I might be exposed to FCU because of the fact it is a one of kind special delivery type of deal… but the entire investment climate has changed since TEPCO announced the contaminated water is still pouring into the Pacific Ocean.   In fact I just cannot see this one coming to life.

On the other hand… if good news does come out of Japan and things can be cleaned up and the healing process start… things could turn around and people could forget… but the pride of the Japanese and not asking for international help has most likely created an even bigger problem in the long run.   I always thought of nuclear as green energy because the contents can easily be stored and buried unlike atmospheric pollution. But the disaster at Fukushima has me starting to think differently about nuclear energy being green.

Marijuana Stocks

A new theme that I will slowly be starting to pound the table on is Marijuana. Marijuana is one of the biggest growth sectors of the 21^st century. First you have the medical marijuana which treats everything from back pain to IBS to diabetes to AIDS to curing cancer. But you also have the recreational market which is being legalized in certain states. In reality, this is the biggest wave in medicine on the horizon and will give the entire industry a big shot in the arm. A lot of people are skeptical that the medical aspect is not worth it because you can’t patent a plant… point taken.

What makes this industry so unique is the 100’s of different ailment it treats and it’s all because of Cannabinoids contained in the marijuana. The great opportunity is taking these cannabinoids and increasing the concentrations well beyond what you exist naturally in a plant and in different combinations for different desired results. There are 6 cannabinoids that have been studied extensively, but there are over a 100 different cannabinoids in the marijuana plant, each with different and unique properties.

That is what makes this the opportunity, the endless combinations and potential to treat numerous ailment a lot better and more efficiently.
Just by tweaking Mother Nature you can get a product that is 10 times better and more effective than what someone could ever smoke in a joint or vaporize or eat in brownie. You can do in a lab what you can’t do in nature. You can bring a product to market that you can patent and no one can replicate. Just like any other pharmaceutical. And the big point… the potential to revolutionize the market in so many different medicines and diseases.

The biggest prize is bringing a class of cannabinoids cancer drugs to market which represent a ZILLION dollar opportunity. Cancer is the biggest epidemic of our time. It dwarfs AIDS. We will be here with cancer well after AIDS and other diseases have been eliminated. Cancer isn’t something you catch; it is something that happens when your cells go bad, and with all the cancer causing things in today’s environment. It is not going away.

And a cure? Well I am of the opinion that cancer treatments will always be a reactionary medicine and the closest thing to a cure we find.

Colorado and Washington = $2B Recreational market

Then there is the recreational element. This is another massive market opportunity. It is estimated that just in Colorado and Washington were marijuana is legal; it will grow to a $2B plus market. Just in those two states alone!!! The next Bud-wiser will definitely grow up from among these companies that are just starting to pop up on the radar screen. You still don’t have any public companies entering the recreational business or that are even legitimate enough to invest in yet, especially when there are medical companies which are much more legitimate.

Cannabis is still illegal in 48 states so the recreational part does not have the growth potential yet… but legalization in Colorado and the Washington States have set a trend for the rest of the country. How fast will it happen? It is hard to tell, but it is something that could have a snowball effect as more and more states start to push for legalization and decriminalization. Portland Maine became the first city to legalize marijuana and there seems to be a push in California as well as Oregon.   At some point the Federal Government will enact country wide legislation.   If I were to guess, full legalization may happen sometime between 2016 and 2020. It will probably be a very big issue in the 2016 election which may make the Hillary Clinton ticket unbeatable if she takes up the cause.   I think if anything; despite Obama being the pothead from rumors I have heard, this is an issue the democrats don’t want to let out of the armory too quickly. That is just what I think at least.    If they have done their polling right… they will find that many Americans will vote in spite of partisan lines in favor of this issue while at the same time not dissuading people who are against it not to vote for them.    Maybe I got this one wrong.

At any rate, the great thing about this emerging growth sector is that you don’t have to hang your hat in just the legalization and the recreational aspect. That is just another goodie to fall from the money tree later on. The story right now is the medical marijuana market which is just as lucrative and much more open to exploitation.   GW Pharmaceuticals NSADAQ:GWPH who recently launched Sativex in the USA has tripled from a sub $9 low in July to a $32.75 high in late October. This would be my favorite in the entire sector but at this time I think other companies are priced a little bit better. If GWPH falls to $20 then it becomes a much more attractive buy. The great thing about GW is that the company patents all their products and acts like a real pharma stock unlike the rest which are still in incubancy stage and trying to establish legitimacy. If there is a company on track for buyout for a bigger name to make a splash into the sector then GW is the obvious choice.

On the watch list I have 5 companies that I am watching closely and am familiarizing myself with. This list will grow as the industry grows, but being the industry is what it is… these companies need to be scrutinized a little bit more.

Company	Symbol	Product	Market Cap
GW Pharmaceuticals	GWPH	Research, development, and commercialization of a wide range of cannabinoid prescription medicines. Sativex is the company’s flagship drug approved in 20 countries to treat MS (spasms) with several other cannabinoid based drugs in the pipeline.	$451M
Medical Marijuana Inc.	MJNA	Is a holding company that owns a variety of companies that are innovating products in the hemp/marijuana industry.	$134M
Cannabis Science	CBIS	Develop, produce, and commercialize novel cannabinoid based therapies for treatment of cancer and HIV	$24M
CannaVest Corp	CANV	Produce raw/bulk Cannabinidoil (CBD)	$313M
Nuvilex Inc	NVLX	Own subsidiary Medical Marijauna Sciences and applying CBD/THC to produce effective class of anti-cancer drugs	$78M

New Picks!!!

Western Forest Products WEF-T

Shares Out… 260.9M
Market Cap... $407M

Since there is no respite in materials or gold for the next 2 or 3 years, I continue to persue other themes. In fact, there is no guarantee that materials will come back for another generation.   Gold may come back, but I am not counting on it. The Chinese are in no hurry to pick up growth to previous levels. Growth in China is morphing into value added growth. It isn't about raw GDP growth and growing out, but more about China growing up.

So raw materials they still need… but they will want different raw materials.

They are no longer interested in manufacturing raw low cost goods so out the window is iron ore. I doubt iron ore will ever come back, or if it does, it will because a nation like India decides to urbanize. Instead the Chinese are turning to creating wealth in for society as opposed to the country where China has become great on the backs of slave labor of the majority of its citizens. One way I keep preaching the Chinese will create wealth is buy pursuing a strong dollar policy and importing the wealth of other nations. They will import BC wood. BC has high qulaity wood and is ideally located geograhically to become a major trading partner with China.

Telsa recently opened their first showroom in China which attracted a lot of young wealthy Chinese which is proof of this growing class in China. As more and more Chinese come into wealth by China focusing on internal policies, BC lumber will be high on the value added list. For BC, this is an emerging market that could spur growth for companies like Western Forest Products for the next decade and provide a market that may eventually be bigger than the US market.   Lumber companies are in the midst of a boom just like airlines… how do you know the economy is humming along? Airlines and forestry companies are smooth sailing.

Yup. Things must really be rosy. I didn’t think lumber companies made money.

This is a multiyear bull run for companies like WEF which traded as low as $0.20 back in 2009 and nearly went out of business. WEF is riding the USA housing recovery wave along with every other lumber company, but has the added benefit of a growing Pacific Rim trading partner who will be demanding more of BC softwood products as the Yuan continues to appreciate versus all currencies. Forest products is one materials/resource that looks like it has a bright future over the next 2 to 3 years while the USA continues to recovery and China chugs along with polices that are focused on increasing Chinese wealth.

QHR Technologies QHR-V $0.97

Shares out… 48.0
Market Cap… $46M

QHR technologies is an example of a company that is melting up. QHR is perfect example of high growth company in the high growth medical sector with a product that makes everything more efficient. The basically offer a suite of software modules that provide computer based medical records for family physicians, medical specialists, and surgeons. A key component in the move throughout Canada and the rapid growth over the last five years was providing electronic healthcare records for all Canadians.

They are now taking their medical platform to the USA where Obamacare is being implemented and from the sounds of things, it looks like the USA GOVT has a problem with the technical software aspect of things. I am not sure exactly whose QHR competition is or if they have any, but the rapid growth in Canada with revenue growing from $6.5M in 2008 to $29.5M in 2012, there is a huge opportunity if they can replicate this type of success in the States.

At any rate, this company I have been watching since $0.50/$0.60 and like always...the $0.60 rule is a great predictor of stocks that take the next level. So if you like KLH… I might suggest that there is still a lot of legs on QHR before it gets ‘pricey’.
NCI-V is another stock that is taking a break because it hit $0.60 and couldn’t crack it the first go around is going to drop back off… especially if it came from sub $0.20 where it came from. You would like to see $0.40 hold, but sometimes they don’t and go right back down to where they came.   NCI came in with another great quarter putting the company on track to make $0.08 per share.    At $0.40 that is 5 times earnings and most likely a bottom if it gets there. It is always nice when a company has earnings to supprot its share price.

Pretvim Update

Since I announced that PVG was a ‘balls to the wall’ buy… PVG and Snowden have been slapped with class action lawsuit in both Canada and the USA. With the potential that POG has further to drop, it appears that PVG may drop even further before a bottom is firmly in. I stress that this is an extreme buying opportunity and you are getting two quality deposits that both have merit as mines. At the current price of $350m market cap, you are getting PVG for about $6 per ounce of gold which is a ridiculous price for a company with the extension to Seadridge’s KSM deposit which is going into production. If this level breaks… I wouldn’t touch PVG until $2 or so but at that price the risk reward is massive.

From the Oct. 31 new release regarding Pretium and a class action lawsuit filed in New York…

The Complaints allege that Defendants made materially false and/or misleading statements, regarding the Company's mineral resources, probable reserves and the life of mine. Specifically, Defendants did not properly measure resources or probable reserves contained within the ore located at the Valley of Kings ("VOK") mining zone at the Brucejack Project and failed to disclose that its sampling methods were not in conformance with industry standards.

I am not exactly sure how big the disagreement in estimating techniques is, but I surmise that what PVG and Snowden have done is take partial high grade samples and extrapolate it across the entire high grade zone. This technique is common in low grade deposits because the mineralization is quite consistent but in a high grade zone, generally the entire section should be analyzed. If they have done this then the company may have a real legal problem because high grade is so variable and testing a nugget across a half meter sample in a zone as narrow as two meter could overstate the results, especially if the 0.5m section tested 1000 g/t and the rest tested 1 g/t. All of a sudden 2 meters at 1,000 g/t becomes 2 meters at 250 g/t. The big problem is that it is one industry professional opinion vs. another and in reality, if the gold is there, has there been a fraud committed?

These situations are always tough, that is why I call it a balls to the wall buy… you really gotta have some big kahunas to dip your toe into this mess. But like I have said before… the stock is so cheap… the entire high grade resource value has been stripped out of the stock and it trades on par to Seabridge. It may get cheaper but I suggest even if gold drops to $1,000, the SP on Pretium will be insulated at the current prices.

If I had a millions dollars and someone put a gun to my head and said “spend it on a gold stock or I kill you”… I would probably buy this one.

Mock Portfolio

Company	Symbol	Market Cap		Earnings	Industry
*Stocks on the ‘buy’ list…*
Kandi Technologies Group	KNDI	$290M	N/A		Electric Vehicles
Macro Enterprises	MCR-V	$203M	$0.61/sh. (6 mos.)		Oil Services Industry
Cipher Pharmaceuticals	DND-T	$180M	$0.19/sh. (6 mos.)		Biotech industry – Absorbica
Stellar Biotechnologies	KLH-V	$141M	N/A		Biotech industry – KLH
Village Farms International	VFF-T	$46M	$0.10/sh. (6 mos.)		Agricultural - Greenhouse tomatoes
Energizer Resources	EGZ-T	$30M	N/A		Graphite Mining
Sirona Biochem Corp	SBM-V	$16M	N/A		Biotech – skin lightening
MedX Health Corp	MDX-V	$5M	N/A		Biotech – Mole Mate
Zynga	ZNGA	$2.85B	-$0.08/sh.		Social Media Gaming
Groupon	GRPN	$6.45B	-$0.14/sh.		Social Media Tech
Pretvim	PVG.T	$347M	N/A		Distressed gold asset
Bitcoin	BTC		N/A		Currency

*New additions…*
QHR Technologies	QHR-V	$43M	$0.01/sh.		Medical Technologies
Enterprise Group	E-T	$67M	$0.09/sh.		Energy Services
Western Forest Products	WEF-T	$407M	$0.20/sh.		Forest Products
Nuvilex Inc	NVLX	$78M	N/A		Biotech
GW Pharmacueticals	GWPH	$451M	N/A		Biotech

*Stocks on the ‘hold’ list…*
Fission Uranium Corp.	FCU-V	$166M	N/A		Uranium – PLS Discovery
Tesla Motors Inc.	TSLA	$20B	$0.20/sh. (Q2)		Electric Vehicles
Lomiko Metals	LMR-V	$5M	N/A		Graphite/Graphene
Barkerville Gold	BGM-V	$83M	N/A		Gold
NTG Clarity Networks	NCI-V	$18M	$0.06 /sh. (9 mos)		Tech Services
AgriMinco Corp	ANO-V	$7M	N/A
Canada Carbon	CCB-V		N/A		Miller Vein/Lump Graphite Mine

*Stocks on the sell/sold/short list…*
Labrador Iron Mines	LIM-T				Iron Ore
Zenyatta Ventures	ZEN-V				Amorphous Graphite
GTA Resources	GTA-V				Mineral Exploration
West Africa Iron Ore Corp	WAI-V				Iron Ore

Christopher Skidmore

Beat the Market Stock Picks