Get High! Marijuana-dispenser Stock Jumps 3,000 Percent In One WeekSubmitted by emalvini on Fri, 11/16/2012 - 19:38
GET HIGH! Marijuana-dispenser stock jumps 3,000 percent in one week
A company that creates medical-marijuana dispensing machines says its stock is getting way too high.
By Quentin Fottrell
Nov. 16, 2012, 4:01 p.m. EST
Medbox MDBX -90.24% shares surged 3,000% this week -- from roughly $4 Monday to $215 Thursday -- before falling to $100 after executives sought to dampen investor enthusiasm.
In a news release today, the company said that the stock’s rocket launch, which sent its market cap skyrocketing from $45 million at the start of the week to a staggering $2.3 billion, was ignited by a MarketWatch story Tuesday on how to invest in legalized marijuana (see How to invest in legalized marijuana .) (That’s about double the market capitalization of retailer Jos. A. Bank Clothiers.) The stock, which fell around 50% in early trading Friday, still hovers at $100. “We believe an appropriate trading range is between $5 and $10 but, alas, the market will do what it will do,” says Medbox founder Vincent Mehdizadeh.