This Marijuana Stock News Stresses 2 Critical Investing Tips – Money Morning

Two recent marijuana stock news stories show how companies can easily defraud investors. Today, we’re going to show you two easy ways to spot these shady companies so your money is never in jeopardy.

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Marijuana Business Are Teaming Up with This Billion-Dollar Industry

Here at Money Morning, we’ve been following two unfolding marijuana penny stock scandals. Back in February, a company called mCig Inc. (OTCMKTS: MCIG) – which sells e-cigarettes used for vaping cannabis – was accused of unreported insider selling.

This was uncovered by Alan Rothstein, the founder of the website 420 Investor. He discovered a discrepancy in the company’s 10-K filings, which are annual financial reports submitted to the U.S. Securities and Exchange Commission (SEC).

Two of the filings revealed that mCig CEO Paul Rosenberg had sold personal shares of the company without reporting the transaction. In 2016, Rosenberg owned 23 million shares of MCIG stock, but the 2016 filing showed he owned only 20.9 million.

CEOs have to file a Form 4 with the SEC when they sell shares, and Rosenberg failed to do so. An insider sale without formally filing and disclosing it to the public indicates Rosenberg may have been trying to mislead investors.

If the investors knew Rosenberg dumped his shares, they would’ve thought something was wrong with the company and followed suit. This would’ve inevitably sent the stock plunging, which is something no CEO ever wants to happen to their company.

But there’s another scandal brewing that’s even worse. This one was big enough for the SEC to file formal charges and launch an investigation…

This Marijuana Stock News Could Leave Investors with Losses

Back in June, the SEC charged CV Sciences Inc. (OTCMKTS: CVSI), also known as CannaVest, with fraud. The charges are related to the company’s CEO intentionally reporting false finances

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Marijuana Stocks Rise After Ontario Government Announcement – Baystreet.ca

Stocks of marijuana companies Canopy Growth Corp (TSX:WEED) and Aphria Inc (TSX:APH) were up 2.5% and 1.3% respectively on Friday, September 8 midway through the noon hour. The same day the Ontario government unveiled plans to sell marijuana through a at least 150 new government chains. The new system will be overseen by the Liquor Control Board of Ontario but it will be sold through separate stand-alone stores and not alongside alcohol. The product will be behind-the-counter and purchasers will be subject to ID checks and may have to sign for the product. This comes after a period of debate among several provinces and Ontario releasing a survey to citizens for how marijuana will be sold.

The legal age for consumption will be 19 and marijuana will also be available for purchase online. Small, privately-owned dispensaries will now be the further focus of a government crackdown. For companies like Canopy Growth and Aphria the move by the Ontario government likely does not come as a surprise. Politicians and bureaucrats have been warm on the idea, no doubt many are attracted to the potential revenue that can be produced for the public sector since the announcement of legalization.

Canopy Growth CEO Bruce Linton believes that the remaining provinces will follow suit with similar systems. Marijuana stocks are in good position to shed some of the pessimism since concerns emerged following the provincial debates. It appears legalization is on track for the July 2018 deadline.

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Why This Marijuana Stock Crashed 18.5% in August – Nasdaq

What happened

Arizona’s attorney general is suing Insys Therapeutics (NASDAQ: INSY)  over its marketing of the fentanyl opioid spray, Subsys, and that news caused the company’s shares to tumble 18.5% in August, according to S&P Global Market Intelligence .

So what

Insys Therapeutics has launched its marijuana drug Syndros. However, uncertainty over demand for it and ongoing concerns regarding the marketing of Subsys remain major headwinds.

IMAGE SOURCE: INSYS THERAPEUTICS.

Insys Therapeutics maintains that Syndros is better than Marinol, a THC drug that’s been used to treat weight loss in AIDS patients and nausea and vomiting in chemotherapy patients since the 1980s. A liquid formulation of Marinol, Syndros can be more easily dose adjusted and it offers better bioavailability than Marinol.

The company hopes these advantages will allow it to win away some of the roughly $200 million spent on Marinol annually. Syndros, though, isn’t included on many insurers’ drug formularies yet, so it remains to be seen how quickly its sales will ramp.

If Syndros launch is slow-going, it will be disappointing. Investors are eager to offset sliding sales of Subsys, Insys Therapeutics’ breakthrough pain medicine. Subsys has been under scrutiny since 2015, when news reports called into question its use outside of its approved cancer indication.

The Subsys debacle has led to the revolving door in the company’s C-Suite and the arrest of its former CEO. The company installed a new CEO earlier this year who has promised to work toward settling the Subsys investigation, however, there’s no telling when that might happen.

Now what

Insys Therapeutics’ shares rallied briefly after management announced a $4.5 million settlement with Illinois’ attorney general on Aug. 22. However, Arizona’s attorney general filed suit against the company on Aug. 31.

The company’s still generating sales from Subsys, but it’s barely breaking even

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Why This Marijuana Stock Crashed 18.5% in August – Motley Fool

What happened

Arizona’s attorney general is suing Insys Therapeutics (NASDAQ:INSY) over its marketing of the fentanyl opioid spray, Subsys, and that news caused the company’s shares to tumble 18.5% in August, according to S&P Global Market Intelligence.

So what

Insys Therapeutics has launched its marijuana drug Syndros. However, uncertainty over demand for it and ongoing concerns regarding the marketing of Subsys remain major headwinds.

IMAGE SOURCE: INSYS THERAPEUTICS.

Insys Therapeutics maintains that Syndros is better than Marinol, a THC drug that’s been used to treat weight loss in AIDS patients and nausea and vomiting in chemotherapy patients since the 1980s. A liquid formulation of Marinol, Syndros can be more easily dose adjusted and it offers better bioavailability than Marinol.

The company hopes these advantages will allow it to win away some of the roughly $200 million spent on Marinol annually. Syndros, though, isn’t included on many insurers’ drug formularies yet, so it remains to be seen how quickly its sales will ramp.

If Syndros launch is slow-going, it will be disappointing. Investors are eager to offset sliding sales of Subsys, Insys Therapeutics’ breakthrough pain medicine. Subsys has been under scrutiny since 2015, when news reports called into question its use outside of its approved cancer indication.

The Subsys debacle has led to the revolving door in the company’s C-Suite and the arrest of its former CEO. The company installed a new CEO earlier this year who has promised to work toward settling the Subsys investigation, however, there’s no telling when that might happen. 

Now what

Insys Therapeutics’ shares rallied briefly after management announced a $4.5 million settlement with Illinois’ attorney general on Aug. 22. However, Arizona’s attorney general filed suit against the company on Aug. 31. 

The company’s still generating sales from Subsys, but it’s barely breaking even on the drug, and with settlements looming,

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Marijuana And 2 Other Investment Manias To Make (Or Lose) You A Fortune – Forbes

Clem Chambers , Contributor

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It doesn’t matter how bad the economy or the market is, the is a simple golden rule: There is always a party going on somewhere.

Love them or hate them, investment manias make people fortunes. They also lose people fortunes. Most ‘traders’ only play the manias, which is why they fly so high and then crash so low.

Over the years the role of the solo investor has fallen in the market. They have gone to ETFs and funds, and many have left for good carrying their scars from 2001 or 2007. The bulk of the remaining people are gamblers. Not you, of course, you are different.

Everyone, well almost everyone, is looking for the next big thing or hot stock. I know this because running ADVFN and Investors Hub for many years gives me a peek at three million private investors around the world. If only they would invest properly the market would grow back, but sadly the vast majority want the kind of trading action that ends in tears.

I’ve written enough books on investing, one of which was number one on Amazon several times, to know ‘traders gonna trade.’

Never mind. The good news for traders is there are currently three parties going on. One has been underway for some time, one is slowly but surely building and one is only starting.

This is where the ‘fast markets’ are current and future. They are:

1) Medical Marijuana

Investment in medical marijuana stocks has been ongoing for some time, but there seems to be no let up to the interest. Back at base we have experienced so much interest that we have successfully filled a LA Hall next weekend for MJAC 2017, a medical marijuana investor conference. We aren’t an

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