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Satori Resources (V.BUD) up 62% as weed stocks draw heavy buzz

Chris Parry Chris Parry, Stockhouse.com
12 Comments| March 13, 2014


They don’t have a permit to grow medical marijuana – as far as we know – and their business plan is pretty much secret, and Stockhouse Bullboarders don’t appear to be having much luck tracking down management for a chat… but Satori Resources (TSX:V.BUD, Stock Forum) is drawing heavy trading volume as speculators take a gamble that the ‘mining company’ will soon be growing weed in Flin Flon mineshafts.

Trading action on V.BUD was unusually heavy Thursday morning, after Stockhouse pondered what was going on with the company in the wake of a shift to what Satori called “agri-mining and agri-pharmaceuticals.” The signing of a medical marijuana industry consultant, Scott Walters, on Tuesday has only added momentum to the rumours.

Shares climbed 62.5% to $0.13, with 6.9 million shares traded by 3pm Eastern.

That volume led the Venture Exchange by a significant margin.

Satori’s keeping its cards close to its chest, but it isn’t the only weed player on the TSX. LW Capital Pool (TSX:V.LWI.H, Stock Forum) is seeking to engage in a reverse merger with Tweed Inc., which has a license to provide medical marijuana, having spent six months doing paperwork, securing a former Hershey candy factory as a facility, and ensuring they measure up on the security and quality control fronts. LW stock is trade-halted while the merger process works through, but it currently shows a market cap of $36k.

Plans are to issue 136 million shares to Tweed for its business.

Tweed founders raised $5m privately to get the company started.

Getting permitted by the Canadian government may well have been what Satori has been up to for the last year, as it revealed scant information to investors other than it has a mine and is seeking to exploit it in new ways.

The government has reportedly received several hundred applications from companies for grow licenses, with only seven approved as of recently.

And many of those companies in the application process aren’t Canadian, but rather cashed up US firms who are already growing south of the border. Among those are names like Creative Edge Nutrition (OTO:FITX, Stock Forum), which has partnered with Endexx Coporation (OTO:EDXC, Stock Forum) and GrowLife (OBB:PHOT, Stock Forum) to bring substantial money and background to the table
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The government asks for a 15-page application. Creative Edge hit them with 900 pages, according to reports, and has subsequently obtained a ‘ready to build’ letter from Health Canada to allow them to start construction of a 58,000 sq. ft facility in Ontario.

Getting a license is worth the trouble; In the US, companies such as Medical Marijuana Inc. and Cannabis Science are both listed and showing crazy share price increases, and Tweed anticipates that it will generate revenue as high as $100m by its second year.

The stock charts for firms like GW Pharmaceuticals (NASDAQ:GWPH, Stock Forum), which is up 800% since September, and Hemp Inc (OTO:HEMP, Stock Forum), which is up 1200% since December, present a scenario that looks like a bubble, but companies such as Full Circle Capital (NASDAQ:FULL, Stock Forum) are investing heavily in the industry as a high performance yield option.

This shift has seen a lot of shell companies suddenly opt to be in the medical marijuana business, with the general strategy being to apply for a license or, if no such license should come, invest in companies that snag one.
Toronto-based PharmaCan Capital appears set to follow the latter strategy when it goes to IPO on April 1.

Whether Satori (or PharmaCan, or any number of subsequent competitors) is a legitimate weed player or would simply like to be is the big question. If it’s the former, their current share price will likely be a launchpad to much bigger things.

But if no government license comes? That could be ugly.

Clearly, a lot of investors are willing to take that chance.

Tags: INDUSTRIAL METALS & MINERALS CONGLOMERATES ASSET MANAGEMENT BUSINESS SERVICES

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spicy11
hey b.c trader why dont u try and let the little ppl try and make a better life for there familys. and to the guy who wrote this why dnt u do your job if u took 5min on net u woulda saw santori is 5min away from the biggest med weed grower in canada
2 stars
March 14, 2014
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BCtrader
@Chris Perry; we need to talk... I have spoken to Jennifer of BUD personally in the past week, and not only did the deal in that PR NOT materialize, but there aren't currently any deals in the pipe. It is only her over there at Satori, and she just had a granddaughter last night. I say this to warn everyone that bought in the past 3 days. Again; get confirmation of that PR, as it did not happen. Disclaimer: I trade potstocks for a living.
1 star
March 13, 2014
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spicy11
HEY BC TRADER FROM CANADA WHO TRADES POT STOCKS 4A LIVING, U TRYIN TO TELL ME YOU DONT KNOW PPL IS RIGHT NEST TO PPS??? AND WHY WOULD I CALL JENNIFER BOYLE WHEN SHES 4COMMENTS BELOW U??????? HAHAHAHAHA BUSTED!!!!!
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March 16, 2014
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kazzman
Medicinal pot comes in many forms. You can take it in pill form. You can have it in a lollipop or gum. You can vaporize it. Smoking it is not the ideal way and I am sure the least used way to take the drug for cancer patients etc. Do some research people.
3 stars
March 14, 2014
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spicy11
well trader then why dont u just come right out and tell us uneducated white trash what 2 companies u own or work 4 and save us all the trouble. and srry ppl i meant santori is next to paririe plant. theres so many stocks to get rich off this very moment i cant keep track! DONT U AGREE B.C TRADER!!!!!!
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March 16, 2014
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BCtrader
Hey Spicy1. Thanks for your insightful ESL positing. I suggest you call Jennifer Boyle and get it from the horses mouth. No need to trust some stranger on here that netted 128k in realized gains in March so far. A family man that's spends each day with his kids thanks to his trading expertise. Have a great day!
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March 14, 2014
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BCtrader
Spicy 11 - thank you again for the wonderful insight. This ain't my first rodeo, please know that. I have two of these deals myself. One of which is in the sector. But thank you again! Check this out: http://www.mtroyal.ca/ProgramsCourses/ContinuingEducation/languages/OnlineESLCourses/
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March 16, 2014
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MrBigger
Better hike taxes to pay health costs for more cancer cases. Smoking causes cancer. Tobacco, pot, etc. Does not matter.
2 stars
March 13, 2014
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smithgee
THC.v also the exact same play as BUD
2.5 stars
March 13, 2014
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spicy11
u trade pot stocks for a living?? u should be ashamed to be a canadian
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March 14, 2014
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