Irrational Exuberance: Even CEO Says Its 1000% Overvalued

[Noobvestor]

http://www.marketwatch.com/story/mariju ... atest_news

My bold:

Medbox 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 (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.

Funny, too, that the source of this article is apparently also the source of the sudden scramble by people to invest in pot.

[NYBoglehead]

People must have toked up before submitting their buy orders!

[phish_indexer]

Pretty classy comment from that executive. Seems like now would be the time to bring more shares to market, no? Personally, I'm not puffing, so I'll pass.

[nisiprius]

Canna bisiness like that live up to its pot-ential? Indica-tors suggest new highs will be reached. As for state-federal issues, wee'd recommend that they be reefered to a joint committee to hash them out.

[peppers]

Wacky tabacky, indeed.

[Kosmo]

Canna bisiness like that live up to its pot-ential? Indica-tors suggest new highs will be reached. As for state-federal issues, wee'd recommend that they be reefered to a joint committee to hash them out.

Ha! How long did it take you to come up with that?

[Valuethinker]

Canna bisiness like that live up to its pot-ential? Indica-tors suggest new highs will be reached. As for state-federal issues, wee'd recommend that they be reefered to a joint committee to hash them out.

Ha! How long did it take you to come up with that?

You don't know Nisi and his way with words.

About as long as it took him to type the words.

[patrick]

Note that this is an OTC stock and has very low volume. On the day the price hit $215 only 1470 shares were traded, so even if all trades happened at the peak price it was only about 0.3 million dollars traded. Compare that to Apple stock which traded about 15 billion dollars worth of shares that day.

[Alex Frakt]

Note that this is an OTC stock and has very low volume. On the day the price hit $215 only 1470 shares were traded...

Maybe 1470 people wanted a framed stock certificate for their rec rooms