Ever since Washington and Colorado legalized marijuana on a state level this month, companies have been looking to grow business around the newly-legal plant.
Medical supply distribution producer MedBox, maker of vending machines for hospitals, pharmacies, and “alternative medicine" clinics, has seen its stock skyrocket.
By 3,000 percent since the 2012 election, in fact.
One would think MedBox executives would be ecstatic, but in reality, the company is terrified of what will happen now that it’s suddenly become so popular.
The company’s "success" is based on the fact that it’s poised to swoop in and fill the needs of pharmacy, smoke shop, and gas station that may want to sell legal marijuana.
The issue? Such a demand doesn’t exist yet.
Until the federal government legalizes marijuana on a national scale, states where it’s legal still won’t be able to sell the chronic outside of medical dispensaries.
In Colorado and Washington, it will no longer be a crime to possess the herb, thanks to the 2012 election results. Public vending machines are a long ways off, however.
MedBox investors are thus gambling, for lack of a better word, on the assumption that it’s only a matter of time before its products will be needed.
CEO Dr. Bruce Bedrick issued a statement warning caution, claiming it should be worth between $5 and $10 per share, and anything more is just a temporary inflation.
To put things in perspective, MedBox stock was trading at $4 per share before the election, and was trading for $215 by the end of trading on Friday.
Long story short: Don't be too hot on this box or you could set your portfolio ablaze.
Marijuana: Should it be legal?