Marijuana stocks have delivered triple- and even quadruple-digit returns to investors in 2017. For example, Amfil Technologies Inc. (OTCMKTS: AMFE) has exploded a massive 1,942.8% so far this year.
But there’s still risk involved in this industry, as you’ll see when we detail this recent marijuana penny stock scandal. Afterward, we’ll also give you two important tips for avoiding these kinds of scams in the future.
This Marijuana Penny Stock Is Being Investigated by the SEC
The investigation involves one of 2013’s top-performing marijuana stocks: CV Sciences Inc. (OTCMKTS: CVSI), which also goes by the name CannaVest. It’s a Las Vegas-based cannabis firm charged with fraud back in June for falsifying its finances in 2013.
That year – 2013 – was considered a banner year for CVSI stock, which rocketed 700%, from $5 to $40. By January 2014, it had reached an all-time high of $70.
But CannaVest’s 700% return in 2013 has since been overshadowed by its crash in value. As of Nov. 10, the stock has plunged 99.7%, to $0.24, from that January 2014 peak.