In maybe the best weed news we’ve heard since election day, a company that makes medical marijuana vending machines saw its stock shoot up by a full 3,000% this week after being mentioned in a Wall Street Journal article on ways to invest in legalized marijuana. As you can see, the headline for this writes itself.
Apparently, though, the jolt in share prices from $4 to $215 was actually way too much, and executives at Medbox went out of their way to temper enthusiasm, coaxing prices down to $100.
“It was astonishing,” said the company’s founder Vincent Mehdizadeh. “We couldn’t really understand why that was happening other than that there was a high demand for stock with limited supply.” He added, “We believe an appropriate trading range is between $5 and $10, but, alas, the market will do what it will do.”
They do see the high share prices as a permanent reality in the coming years, though, and in their third quarter revenue jumped from $850,000 to $1.3 million.
So, the takeaway here is essentially what everyone knew: in addition to being a legitimately helpful form of medicine and a fun thing for people to enjoy, legalized marijuana has the potential to be outrageously lucrative. That, and drug vending machines are apparently way less fun than I had dreamed — watch their totally incomprehensible video tutorial for this thing over at the Medbox website, if you have Advil on hand. It involves actual fingerprinting!
Follow Virginia K. Smith on Twitter @vksmith.