Expect 2016 to be a comeback year for marijuana stocks and the cannabis sector as a whole.
Elections and new legislation have the marijuana debate gaining mainstream media exposure similar to what was seen in 2014, the year of the marijuana boom. Some companies that were once considered marijuana industry leaders are beginning to pump life back into the sector.
GrowLife (PHOT) , a provider of farming soil, hydroponics equipment, organic plant nutrients and other products to specialty growing operations in the United States, saw its stock soar nearly 206% on 43 times the average three-month volume after it received clearance from the Financial Industry Regulatory Authority Inc. to have its stock re-listed on the OTC Bulletin Board on Feb. 18.
Shares of GrowLife have traded on the grey markets since being halted by the Securities and Exchange Commission on April 10, 2014. President Marco Hegyi said that the company is now focusing on up-listing to the OTCQB exchange.
GrowLife was once considered the leader of the marijuana industry, with its stock gaining 2,100% between 2013 and 2014. When trading in the stock was halted two years ago, many market observers considered that the needle that burst the marijuana bubble, as virtually every other stock in the sector collapsed soon thereafter.
The resurgence of GrowLife as a high flier has the marijuana investment community buzzing. High volume trading, coupled with triple-digit gains is what attracted so many traders and investors to the marijuana sector more than two years ago.
Now, GrowLife's recent surge after re-listing to the OTC Bulletin Board could be a catalyst to ignite a once red-hot sector.
TerraTech (TRTC) , a company focusing on legal hydroponic crop produce as well as cannabis products, is another former industry leader providing a boost to the overall sector.
The stock gained 2,228% between 2013 and 2014 before the sector hit the skids in 2014. But for this year to date, the stock is up nearly 53% and saw highs at one point representing a 97% gain.
TerraTech was featured in an article by Forbes contributor Debra Borchardt on Jan. 12 that highlighted the company's purchase of Blüm Oakland, a retail medical cannabis dispensary in Oakland, Calif.