RE:Just a general gripeThis will likely be the case until the sector becomes more developed and valuations start to fall in line with revenues and profits.
Right now the whoe thing is speculative and the markets appitite for risk has more of an impact then anything else.
HUGE like most companies in the sector have proven nothing yet, it is all potential and no reality.
$500million is a big makret cap for a company with zero revenue, so people are absolutly seeing the future potential of this company. If we were gong to value HUGE based on actual financials, they would be worth next to nothing along with most other POT companies.
This is very similar to Online retailers in the late 90s, everyone knew the internet was going to change things and it was a whole new sector to invest in and 1000s of companies pop up and raised money to try to become part of it. Every company who opened and said they were going to sell something online suddenly became worth 100million dollars overnight, even though they had not proven they would be sucsuffuly at it yet.
Almost everyone of them went under and became worthless. Amazon was pretty much the only online retailer that made it the rest went belly up, instead existing stores just started selling online. And for every Google that made it, there were 10 Ask Jeeves that failed.
There is not a single POT stock that is a sure thing, some have a better shot then others, but 10 years from now, the whole sector could be dominated by existing big Pharma and tabacco companies. Odds are only 1 in 10 POT companies that exist today will exist 10 years from now. Some people will make money and others will lose thier shirts