DushBag --> Cody Willard, Says Growlife halted; marijuana penny stocks doomed

He claims, Over and over, frankly, and consider this yet another warning. Stay away from hyped-up penny stocks, which so far this year has meant specifically staying away from the marijuana-weed-pot penny stocks, most of which even at this moment, are still up many hundreds of percent in the last year. Most of these over-the-counter weed penny stocks are just vehicles for their insiders to sell shares to retail investors caught up in the hype of the legalized marijuana revolution.

He try's to explain again. I’ve repeatedly highlighted Growlife PHOT as a poster-child for this game in which the retail investor is always the mark, and late last week, holders of PHOT woke up to news that the SEC had finally gotten off their butt and was suspending trading in this stock while they investigate the company’s stock trades “because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT’s common stock.” I have certainly been one of those who have raised questions about the accuracy and adequacy and potentially manipulative transactions in PHOT‘s common stock. I’m glad to see the investigation, even coming way too late for all those retail investors who got stuck with this now suspended stock.
In just the last two months, here are a few of the articles in which I asked those questions about the weed penny stocks and Growlife PHOT specifically:

Because of these negative post on his "The Cody Word" blog, the stocks have gone down. Thousands read this and get scared.

Study finds signs of brain changes in pot smokers

A small study of casual marijuana smokers has turned up evidence of changes in the brain, a possible sign of trouble ahead, researchers say.

The young adults who volunteered for the study were not dependent on pot, nor did they show any marijuana-related problems.

"What we think we are seeing here is a very early indication of what becomes a problem later on with prolonged use," things like lack of focus and impaired judgment, said Dr. Hans Breiter, a study author.

Longer-term studies will be needed to see if such brain changes cause any symptoms over time, said Breiter, of the Northwestern University Feinberg School of Medicine and Massachusetts General Hospital.

Previous studies have shown mixed results in looking for brain changes from marijuana use, perhaps because of differences in the techniques used, he and others noted in Wednesday's issue of the Journal of Neurosciences.

The study is among the first to focus on possible brain effects in recreational pot smokers, said Dr. Nora Volkow, director of the National Institute on Drug Abuse. The federal agency helped pay for the work. She called the work important but preliminary.

The 20 pot users in the study, ages 18 to 25, said they smoked marijuana an average of about four days a week, for an average total of about 11 joints. Half of them smoked fewer than six joints a week. Researchers scanned their brains and compared the results to those of 20 non-users who were matched for age, sex and other traits.

The results showed differences in two brain areas associated with emotion and motivation — the amygdala and the nucleus accumbens. Users showed higher density than non-users, as well as differences in shape of those areas. Both differences were more pronounced in those who reported smoking more marijuana.

Volkow said larger studies are needed to explore whether casual to moderate marijuana use really does cause anatomical brain changes, and if so, whether that leads to any impairment.

The current work doesn't determine whether casual to moderate marijuana use is harmful to the brain, she said.

Murat Yucel of Monash University in Australia, who has studied the brains of marijuana users but didn't participate in the new study, said in an email that the new results suggest "the effects of marijuana can occur much earlier than previously thought." Some of the effect may depend on a person's age when marijuana use starts, he said.

Another brain researcher, Krista Lisdahl of the University of Wisconsin-Milwaukee, said her own work has found similar results. "I think the clear message is we see brain alterations before you develop dependence," she said.

Why Marijuana Edibles Are Harder to Regulate And Don't Get You as High

Employees restock edibles at Denver Kush Club in Denver, Colorado on Jan. 1, 2014.

Seth McConnell/The Denver Post via Getty Images

Move over Alice B. Toklas.

Her hashish-infused fudge -- a mélange of fruit, nuts, spices and cannabis -- was the rage of expatriate Paris in the 1950s, and her recipe for psychedelic brownies were the subject of a 1968 cult Peter Sellers film, "I Love You, Alice B. Toklas."

Now, in Colorado, where recreational use of marijuana took effect this year, consumers can choose from sodas, candies and even THC-laden beef jerky to get their Rocky Mountain high.

Purveyors like Dixie Elixirs offer everything from chai mints to chocolate truffles and elixirs in flavors such as Old Fashioned Sarsaparilla to Sparkling Pomegranate, and retailers say they edibles are flying off shelves.

But the state is only beginning to get up to speed regulating these cannabis edibles, and experts say there will be new challenges arising every day. For a start, the state cannot rely on either the investigative expertise of the Centers for Disease Control and Prevention or the regulatory know-how of the Food and Drug Administration – marijuana is illegal at the federal level.

"There are going to be hundreds of questions on the legal and health side that no one was able to foresee when the voters pulled the lever," said Paul Doering, professor of pharmacy practice and co-director of the Drug Information and Pharmacy Resource Center at the University of Florida.

"I am very focused on product quality and the steps taken by the manufacturers of pharmaceutical drugs are so extreme and complex that the average consumer can have reasonable certainty that when they take 325 milligrams of aspirin, their tablet contains 325 milligrams," said Doering.

Voters approved Amendment 64 in December 2012, which made it legal for anyone over the age of 21 to use or possess up to an ounce of marijuana for any purpose.

"Colorado is learning the hard way that there is a lot more to do when have pledged to the citizenry to have a highly regulated marijuana industry," said Doering. "It's an oxymoron almost right from the start."

Edibles stand to be big business in Colorado since licensed marijuana retail stores opened Jan. 1, but how will consumers know these products are safe?

The Colorado Department of Public Health has not been involved in regulation, because part of its budget is federally funded. So the Marijuana Enforcement Division of the Department of Revenue is overseeing regulation of the entire industry.

"We had four months to get all these regulations together," said Daria Serna, a spokesman for the Department of Revenue. "The legislation was passed and we had a tight timeline."

"We rely on experts," she told ABCNews.com. "The governor signed an executive order to create a task force and it was clear, he wanted everyone at the table -- elected officials, people from the medical marijuana industry ... educators and scientists. We are all working together."

According to a fact sheet from Denver Public Health, there are no recorded cases of overdose deaths from marijuana, but it says it can cause accidents and medical problems that can lead to death.

Joe Hodas, chief marketing officer for Dixie Elixirs and Edibles, said his company is building a new 30,000-square-foot manufacturing facility and warehouse to keep up with the appetite for marijuana food products.

"Demand's been huge," Hodas told ABC News' Denver affiliate KMGH-TV. "And our employees have been just killing it working 'round the clock."

These edibles are prepared like any other food, but cannabis oil is added to the recipe. They are designed for those who do not like the coughing and choking of inhaling pot smoke or who are looking for a discrete way to get high in places where smoking is not allowed.

The cannabis plant contains 500 different chemicals, 66 of which are cannabinoids and have an intoxicating effect, according to Doering. The chief psychoactive substance is tetrahydrocannabinol or THC.

According to the National Highway Traffic Safety Administration, because THC's behavioral effects are "unique," it cannot be classified as a stimulant, sedative, tranquilizer or hallucinogen. "Recreational doses are highly variable and users often titer their own dose."

The state requires child-proof packaging that requires a serving size contain no more than 10 milligrams of THC, the active ingredient in marijuana. By comparison, a 26 mg per dose would be prescribed medically for nausea, not to exceed six doses of this size per day.

Labeling also states that the edible product, unlike smoking marijuana, has a "delayed effect."

And therein lies the problem with oral consumption of marijuana, according to Doering -- the dosages can be inconsistent because of the variety of products with variable compositions.

The chemicals in marijuana are also not very stable, he said, particularly in food.

The "wake and bake" is driving up the Stock

Because travelers heading to Denver with a desire to "wake and bake" will have a new lodging to consider this May, when a local hospitality group launches the latest in a handful of marijuana-friendly accommodations in the area.Thr marijuana will see an increase in the NJ stocks. 

The MaryJane Group has announced that it will be taking over the Adagio Bed and Breakfast, a longstanding inn located in the Wyman Historic District, and relaunching it as "the first all-inclusive Bud and Breakfast," catering to clients who desire a fully immersive cannabis-infused vacation.
"When the previous owner Helen [Strader] ran it, she allowed it to be 420 friendly but all of the smoking was done outside the premises and she didn’t advertise it," Dawn Schiermeyer, the new director of lodging at the property, told ABC News. "So it’s been an easier transition for us because some people are already aware of it. But we’re in the process of modernizing the space to make it appealing to a younger crowd."

One the way out: all of the antique Victorian furnishings.
On the way in: fully renovated, themed guest rooms, marijuana-edibles from a local dispensary as well as a "humidor smoking room" on the third floor.
The Adagio 'Bud and Breakfast' joins just a handful of properties in the Denver area that have braved this uncharted travel territory. But despite such small numbers, the options are diverse.
Get High Getaways, a clothing-optional, marijuana-friendly environment advertises a raucous-yet-private environment complete with female staff wearing pot-leaf pasties on its website.
Meanwhile, The Cliff House, a historic property in nearby Morrison that was built in 1864, offers eight romantic cottages and also entreats those who indulge in cannabis.

"Even with the legalization of 'Mary Jane,' finding a friendly hotel environment might not be as easy as you think," reads a blog post on The Cliff House Lodge's website. "It may take some time before others join in, but until then, we have no problem being the leader in this movement! Cliff House Lodge welcomes the responsible connoisseur."

For gourmands whose tastes extend beyond hashish, The Adagio Bud and Breakfast will also be employing an in-house chef, said Schiermeyer.
"We'll begin with a basic breakfast menu and then expand to lunch and dinner options," she said, adding that dispensary sample packages, drivers and add-on tours will be available by the beginning of May.
"Our concept is to provide our guests with a complete all-inclusive package where they can enjoy the marijuana lifestyle without having a care in the world," said Joel C. Schneider, president and CEO of The MaryJane Group in a statement. "The Adagio is our pilot project in the marijuana-friendly lodging industry. If our concept is successful, we intend to expand through the leasing or acquisition of additional inns and bed and breakfast establishments."

Your State Could Legalize Marijuana Sooner Than You Think

There has been no end to the wild speculation over the amount of money legalized marijuana sales would bring in. And with no data to report, speculation is pretty much all anyone could do. But now with Colorado's recent announcement that it took in $2 million in tax revenues on $14 million in sales, the great debate over the economic merits of legalization is about to heat up to another level. With numerous U.S. states still saddled with crippling budget deficits, this could be a huge opportunity for them to generate some extra cash to turn things around

The uniqueness of ColoradoMarijuana has been legalized in other parts of the U.S. and the rest of the world for some time now, but Colorado is the world's first fully regulated recreational marijuana market. Because of this, it is being watched very intently by other states (and countries) to see the effects of marijuana sales on tax revenue and other aspects of the state economy.

Why other states should careThe obvious answer here is revenue, as there are plenty of states that are currently having budget issues with essential expenses they need to figure out how to pay. In Colorado's case, the state has already earmarked the first $40 million in excise tax revenue from marijuana sales for school construction, and the recent revenue numbers have prompted new debates within the state government regarding how additional tax revenues should be spent.

States on the cuspThere are legalization bills and ballot measures currently being discussed in 19 states (plus the District of Columbia) that would permit recreational use of marijuana. The states closest to passing bills are Alaska and Oregon, both of which are expected to have a measure on the ballot once 2014's election comes, and these two will more than likely pass.

However, some of the other states on this list are still facing significant opposition, but some concrete numbers to go along with the supporters' arguments in favor of legalization could be just what is needed to move them along.

For example, Pennsylvania's Senate Bill 528, which would legalize and regulate recreational use of marijuana, is currently in committee, and I'd be willing to bet that Colorado's revenue has come up in recent discussions. The state is currently facing a budget deficit of more than $1 billion due to other tax changes, and could really use any help it can get to bridge the gap.

New York currently has a bill pending that would allow adults to possess up to 2 ounces of marijuana and has already approved a medical marijuana bill. The state has estimated that once it finalized the taxation and regulation of the market, medical marijuana alone would generate about $200 million annually in tax revenues. If recreational use were legalized, this figure could be much higher.

Having a new revenue stream that can be used for whatever a state happens to need is a pretty good result of legalizing something that has been around for decades.

National legalization, and what it could mean for the statesAs fellow Fool contributor John Maxfield pointed out, the biggest obstacle to the marijuana industry in general is that it is still illegal at the federal level, despite what each state does. This creates several challenges for the industry, including the fact that it's still illegal to transport marijuana across state lines, regardless of whether or not it was obtained legally. It also prohibits banks from providing services to the industry, which has pretty much turned the marijuana business into an all-cash operation.

A recent CNN survey shows that 55% of U.S. adults believe that marijuana should be legal, and the nationwide trend has been toward legalization for some time now. Additionally, the federal government could definitely use the money, as well. If marijuana were to become legal on the national level, it would eliminate a lot of barriers of entry to the industry, creating wider availability of product, and even more revenue for the states.