Boston, MA 03/27/2014 (medicalmarijuanareporter) – With the states of Washington and Colorado now legalizing the use of marijuana for recreational use and 20 other states allowing it to be used for medicinal purposes, there has been a surge of interest in medical marijuana stocks. Arguably, one of the best performers has been CannaVEST Corp (OTCMKTS:CANV) the price of which has jumped more than 1200% since the beginning of 2013 and, in February, when the price touched $160 a share, the market capitalization was more than $3 billion. This has been despite its negligible financials which show more than $28 million of losses in the first three quarters of 2013 on total revenues of $1.35 million.
What the company does
The company describes itself as being in the business of producing compounds based on industrial hemp with a focus on cannabidiol (Hemp) but it should be noted that it has no involvement in products or marijuana containing THC. Hemp is a non-psychoactive compound present in both industrial hemp and marijuana and appears to have some wellness benefits being studied by the pharmaceutical industry for uses in conditions like pediatric epilepsy. Its Phytosphere Company grows and processes the hemp oversees and imports the raw hemp paste which is refined to produce Hemp Oil as the base for products ready for the retail market produced by its other portfolio companies.
The future outlook
CannaVEST Corp (OTCMKTS:CANV) is continuing to pursue its objectives of developing a domestic infrastructure for the cultivation and production of industrial hemp. The 2014 Farm Bill allows legal cultivation under certain conditions and will support the U.S. farmers by supplying seed and oil processing equipment and supply chain solutions. The share price which had touched $201 has given up a lot of its gains and is currently quoting at $59. This is a high-risk investment and you should consider investing only if you have the risk appetite and believe in the future potential of cannabidiol.