Surna Inc (OTCMKTS:SRNA) Turns Into A Winner

Surna Inc (OTCMKTS:SRNA) is a name that we've been touting all year here at Insider Financial. After hovering around the $.10 level for much of the year, we finally got the breakout we're were looking for last week. We last profiled the company back in May and said that the company was making big moves and gearing up for a run. While it took a little longer than we were hoping for, SRNA finally delivered. Judging by the enthusiasm for pot stocks and Green Rush 2.0, this run might just be the tip of the iceberg for cannabis investors.Surna Inc is based in Boulder, Colorado and develops innovative technologies and products that monitor, control and or address the energy and resource intensive nature of indoor cannabis cultivation. Currently, the company's revenue stream is based on its main product offerings – supplying industrial technology and products to commercial indoor cannabis grow facilities.We said last time that "SRNA is one of the most undervalued pot stocks trading on the OTC markets. Shares remain well off their 52 week highs of $.29 per share. As more pot stock investors look for undervalued and underfollowed pot stocks, SRNA will be at the top of their radar screens." In the second quarter, SRNA delivered. Revenues grew 13% to $1.9 million, compared to $1.7 million, reflecting sales momentum and greater demand as more states legalized cannabis. Operating loss improved to $299,000 from $690,000 and the net loss was $704,000, or $0.00 per share, compared to $976,000, or $0.01 per share.The company made considerable progress in Q2. Surna was awarded a contract valued at $1.0 million with the general contractor for Rolling Farms, LLC. The press release said that "Brian Lade is an advisor to Rolling Farms, LLC and the owner of The Clone Zone, LLC in Smokey Point, WA. The Clone Zone has relied on Surna's climate control system for the last two years and has become one of Washington's highest performing producers. Lade reports the consistent quality of his crops has created strong demand for his Smokey Point Productions (SPP)-branded products. Rolling Farms, LLC - a new 100,000 square foot cultivation facility that will be completely Surna equipped and grow the SPP-brand - expects to begin operations in a few months."For Surna and its shareholders, the timing couldn't be any better. Come November, voters in at least nine states will decide on whether to legalize either the recreational use or the medical use of marijuana. As it stands now, those states include Arizona, Arkansas, California, Florida, Maine, Massachusetts, Montana, Nevada and North Dakota.So far, 25 states have established medical marijuana programs. These states include: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine,Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island,Vermont, and Washington. In addition, Washington, DC and Puerto Rico allow medical marijuana for patients.In California, things are really heating up. Proposition 64, which is on the November ballot, would allow people age 21 and older to possess and use up to an ounce of marijuana and would allow pot shops to sell cannabis for recreational use. The initiative also includes a provision that could someday allow cannabis sellers to advertise their products in print ads and on digital sites and radio and television stations. If Californians vote to legalize recreational use, overnight it will triple the size of the US cannabis market. So far, Proposition 64 has widespread support. Lt. Gov. Gavin Newsom (D) and at least four California U.S. representatives are supporting the measure. Most importantly, latest polling data shows 60% of Californians in favor of legalization.When you look at all these events about to take place, it's going to take a company like Surna with the technology to meet the indoor cultivation demand that is about to sweep the nation. We look forward to Stephen Keen getting his own marijuana facility up and running in Boulder. He said:

"My plan is to use my facility to develop new products, fine tune Surna's products, to emulate project management practices and to educate the cannabis community on best practices. Further, I am dedicated to bringing Surna's Hybrid Building concept to fruition and expect to be fully involved in the construction process. I look forward to working with Surna very enthusiastically going forward."

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