High market volatility continued this week throughout the MJ sector. It seems that everywhere you look these days, marijuana is making headlines and talking points all over mainstream media. This week, a flub on CNBC created a 64% boost to a company's share price when an anchor discussed another MJ related ticker (CANV) while they showed a different other company's (CANN) ticker and chart. To me, this event just underscored my belief that there is plenty of investor money just sitting on the sidelines waiting for guidance on the best ways to invest in marijuana. With almost every ticker in the space being a penny stock, weary investors seem easily persuaded by any sniff of guidance provided by the talking heads on this network. In my opinion it would behoove them to become much more knowledgeable on the sector before recklessly making such a mistake again. The saving grace for CNBC is that Jim Cramer of Mad Money is currently working on his 'marijuana index' which should bring more eyes and money to the sector. This is of course depending on how he introduces 'Cramerica' to the tickers that he ends up including. I am hoping he is optimistic and positive for the index with an added heavy dose of harshness for the many frauds and scams stinking up the majority of the sector right now.
Creative Edge/CEN Biotech - FITX
Last weekend, the buzz was very strong after a Friday evening on-site shareholders meeting, lots of new facility design pics and audio on FB and twitter, and also a high profile appearance for the CEO Bill Chaaban in a Business Week feature. As a result of all the buzz, FITX pps hit a new high of .114 Monday morning before quickly retreating back to .10 the same day. Throughout the week, the stock continued to hurt amidst some sentiment that things are seeming 'off' and 'too good to be true' with this whole operation, with some people even insisting that the entire business is an elaborate hoax. As of Friday, pps had recoiled back to the .07's ending a decisive week for FITX sellers.
The week wasn't a complete loss however as CEN Biotech quietly launched their new website designed to service future patients and begin registering a client base.
http://www.cenbiotechinc.com/
It is expected that FITX's share price will continue to be extremely volatile until investors are convinced that CEN biotech is real beyond doubt and worthy of investment. Until then it is being viewed by the market as a highly speculative gamble.
The Canadian MJ Market
Most Americans are unaware that our neighbors to the North are about to embark on an entirely new system in their distribution of medical marijuana. As of April 1st, large scale growers will be responsible for growing domestic use cannabis, regulating quality, maintaining patient requirements and relations, and shipping medicine directly to the end users. There are currently only nine license holders and it is believed that there will be 51 total licenses issued over time. It should be noted that FITX has applied for and obtained an approval to build, and will be eligible for one of these licenses upon the inspection and approval of their facility to be completed sometime this year. The list of Health Canada's currently approved growers can be viewed here:
http://www.hc-sc.gc.ca/dhp-
Of the nine growers on the list, none of them are currently publicly traded. One however, Tweed Inc., will be soon with an initial public offering on the Canadian TSX Venture Exchange. Being that they will be first to market combined with a few other factors, I am speculating that this IPO could be highly rewarding for those who get in early. To be clear, I cannot be certain of this but I will be personally placing a nice sized bet at the market open price upon the IPO of Tweed Inc.
This will actually be my first trade placed through an international exchange. Some brokers permit trading on other global markets and others do not. If you are interested in buying shares of this IPO, you should look into your broker's policies concerning international trading soon. Tweed will trade under the TSX Exchange ticker TWD and initial offering pps is unknown at this time.
On Friday, a company named Entropia ENRT filed an 8K and press released PR on an acquisition/joint venture in the Canadian marijuana market. They are partnering with another company that is in process of applying to become a Health Canada licensed grower. The company's share price rose 47% on the news by Fridays close.
Growlife - PHOT
News has been scarce from Growlife since shareholders approved the A/S share count by a margin of 88% a few weeks ago. That sure hasn't helped quell the intra-day volatility of PHOT's pps as Tuesday saw a severe low of .301 before recovering relatively quickly back to the .35's. My newest PHOT shares were purchased on Tuesday's pullback and were executed at .314.
The next day saw a surge of buying up to .396 where .40 was tested multiple times but just could not be sustained. PHOT shareholders are awaiting some big news soon and quarterly earnings are expected in March. Market catalysts are on the way and they are largely anticipated to be positive.
GW Pharmaceuticals - GWPH
It is a bit to soon to be calling GW Pharma the 'Pfizer of pot' but that is what I am seeing for the future if they continue developing CBD-related drugs and drug pipeline at the current pace. This week saw good news for GW in their drug Epidiolex granted orphan drug status by the FDA. The company's flagship drug, Sativex, has been approved in many other countries and pending approval by the US FDA currently. GWPH closed up 18% on the week.
That is the week in a nutshell. Make sure to give me a shout if anyone wants more information or to discuss anything related to investing in the MJ sector or otherwise. I am always willing to share my knowledge with anyone interested in learning about the stock market. Good luck to everyone and have a great weekend.
Cautionary Language Concerning Forward-Looking Statements
This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for products, the introduction of new products, a company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in filings with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include statements regarding future sales, costs and market acceptance of products as well as regulatory actions at the State or Federal level. For a more detailed description of the risk factors and uncertainties affecting stocks discussed in this document, please refer to the company's Securities and Exchange Commission filings, which are available at www.sec.gov. I undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No comments:
Post a Comment