Boston, MA 01/10/2013 (wallstreetpr) – Growlife Inc (OTCBB:PHOT) has shown a generally upward direction in its stock over the recent months. But 2014 has been particularly positive for the stock, gaining its most in as many months. This rally can be seen to be tied to the overall hype being witnessed over the marijuana legislation in Colorado. Note that so far PHOT has made its best in the good times and in the process investors who seized the early opportunity are smiling all the way to the bank.
Since the year began Growlife Inc. (OTCBB:PHOT) has gapped up more than 55 percent, a modest gain compared to the broader market. As much as people keep talking about medical marijuana usage, hype in the stocks is building up and investors are making quick gains.
However, the recent red ink closing of Growlife Inc. (OTCBB:PHOT) has left many people wondering whether the best is over for the stock and by extension marijuana industry. Moreover, this are not made better by the fact that last week’s closing went down with some other stocks including Hemp, Inc. (OTCMKTS:HEMP), Medical Marijuana Inc. (OTCMKTS:MJNA) and Cannabis Science Inc. (OTCMKTS:CBIS). However, most of the companies which reversed last Friday are back on track, exposing PHOT is taking its beating now to greater market scrutiny.
Sings of industry weakness
Growlife Inc. (OTCBB:PHOT) could well be the true indicator of the exact nature of pot stocks. These stocks climb when investors note a fresh breath of life in them, but flop when investor confidence wanes. This simply suggest that many if not most investors are playing marijuana stocks for income and this means that investor hopping in should perform due diligence, lest they burn their fingers.
As to whether there is any long-term opportunity in Growlife Inc. (OTCBB:PHOT) and the broader pot stocks is in doubt. Investors are better served for now by going into these stocks for income while staying on the sidelines for longer-term investment.
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