The recent legalization of recreational marijuana in Colorado and Washington seems to have triggered a trading frenzy for the MedBox, a vending machine-type dispensary of the drug, resulting in stocks soaring a staggering 3,000 percent last week.
According to MarketWatch, a story published on the site that gave advice on how to invest in legalized marijuana sent MedBox's market cap skyrocketing from $45 million at the start of the week to a shocking $2.3 billion.
The stock fell around 50 percent by early trading Friday yet still stands at $100, dramatically higher than the $4 share price at the start of the week. The spike has MedBox cautious about new investor satisfaction, should the stocks fall far from the buy-in price, according to the article.
"We believe an appropriate trading range is between $5 and $10 but, alas, the market will do what it will do," said Medbox founder Vincent Mehdizadeh.
Although the company focuses primarily on medical marijuana, Mehdizadeh said the temperature-controlled dispensing machines could also be used in prisons and 24-hour drug stores for a larger range of drugs.
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