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I'm trying to assess the risk/reward here based on a number of factors. Ash111 continues to lay out the strong fundamental thesis. Thanks Ash! I'm curious to get insight from long term holders.
Looking at the weekly chart, I see SP floated between $2 and $4 from September 2014 to January 2015 and then slowly continued trending lower and lower. Being new to this sector, I assume the move in 2014 was based solely on hype.
Also, I assume the float was much lower during that period.
Obviously, with many states already legalized as well as the election approaching with more States coming online, times have changed.
Again, given the strong fundamentals, an investment in CVSI appears to be a no brainer long term.
With so many more frequent day and swing traders playing the micro caps, what will it take to see the SP in the $4-$5 range again? I know that continued expansion and revenue growth is key.
TIA for any broader insights and perspectives.
RM:
Yes, totally aware. I'm also very bullish and holding long. However, I think it is important to also provide other perspectives that aren't necessarily positive or bullish.
Take good care ~
There are certainly caveats new investors should be aware of.
Would love some reasoned commentary on the risks.
Marijuana Stocks a Bummer for Investors
A cannabis investment remains risky despite some initial enthusiasm.
Oct. 11, 2016, at 9:00 a.m.
http://money.usnews.com/investing/articles/2016-10-11/marijuana-stocks-a-bummer-for-investors
Passage of propositions doesn't guarantee major growth for MJ companies. There are still issues:
See here:
4 Reasons California's Marijuana Growers Surprisingly Oppose Prop 64
http://host.madison.com/business/investment/markets-and-stocks/reasons-california-s-marijuana-growers-surprisingly-oppose-prop/article_6b27eb10-37c6-56d4-b8a8-b0995785dfc3.html
Cannabis businesses also get the short end of the stick when it comes to corporate taxation. U.S. tax code 280E disallows businesses that sell federally illegal substances, such as marijuana, from deducting normal business expenses come tax time. In other words, marijuana business are paying tax on their gross profits rather than net profits, putting them at an inherent disadvantage to nearly every other industry.
Finally, marijuana firmly remains a schedule 1 drug, according to the U.S. Drug Enforcement Agency. The DEA had an opportunity recently to review the scheduling status of marijuana, but chose to keep it unchanged based on the lack of scientific evidence that it provides a medical benefit, as well as the unknown chemistry of the plant. This stance by the DEA all but ensures that the marijuana industry's expansion will be constrained by state legislatures and the voting public in certain states.
Well, just got my .225 filled. Waited all day.
What will it take for all the MJ stocks to reenter the bullish run? Will it just suddenly resume or will we see some channeling for a bit?
Thanks. I noticed how minuscule their advertising budget is. Agreed on that.
I do appreciate your bullish sentiment, however, I wouldn't compare any OTC stock to companies on major changes.
Any investors here for a long period and/or invested for a longer term? Say 6-12 months out. What's your thesis for seeing SRNA's continued growth? Surprised at the strength here with this expected correction. It's looking like we could possibly see .22 today. There's still 14 days till the election - could there be another run? I assume a sell-off right before and after the election and then a slow rise. Too many flippers in this sector to see all these recent gains be sustained IMO
Marty:
Care to elaborate on your statement: "realization of the enterprise value relative to other similar stocks."
Thanks
I was expecting this long red bar. Was just a day too soon. Moved over to SRNA and CVSI at the open this morning. Both seem to have more room to run short term. But what do I know? I missed a whole lotta percentage points selling too soon on AMMJ. Still profited though. Just too cautious holding these as there is definitely a bubble forming here. My 2c only.
Dang!!! Second time I sold out (.82) right before an intraday pop of another.10. Dang!!!
"The Greater the risk" . . . The greater the reward! Absolutely!
I totally agree with you. I should add that I've been pretty much been trading on margin which adds a deeper layer of risk.
I just sold again. Parabolic rises like this raise red flags for me. Maybe I'm wrong again. But this was a crazy sweet profit in one week. I'll get back in for sure.
I did a Google search and found all I need to know about going from otc to Nasdaq. Not that simple
Re: Uplisting to Nasdaq. Any knowledgeable folks here care to comment on what's required?
Probably just a settlement afterhours. Saw this happen the other day, but SP opened higher next trading day
That small float is getting smaller and smaller. Is it true that insiders own 80% of float?
What would be the future prospects of up listing to Nasdaq? What would it take?
Wants .20 so bad! Surprised at the strength
Thank You Kindly!
Dilution is the bane of microcaps
What caused last July and August run to .25? Today's chart looks similar to then, but I realize the propositions this time are fueling this run.
Dude: you're smokin' too much Ganja!!! It's just way to Obvious that you're frustrated you didn't get in at a lower price or you're a desperate short that started shorting too soon. Really now? .45 eh? P & D eh?
Not a chance!!
Higher highs, Lower lows. SP hits a high, sells off a bit, then heads higher.
Let's see what EOD Brings. Would love to see another higher close
Nice EOD strength. Back in at .58.
I've been expecting a retrace to.50 or lower. Totally missed out on the last two day run though happy with the profit I took. There's always a correction on these kind of spikes. I'd like to see some base forming here though that's probably unlikely as there are heaps of traders playing it.
Saw afterhours tape at .492. Man, I'd love to see it open lower tomorrow so I can get back in. How about .45? ??
I'm in a similar boat. Bought at .35 and sold today at .48 right before the big break over.50. Darn! But I'm much more comfortable taking guaranteed profits. Just find the meteoric rise suspicious. At some point we will see a correction, IMO. Hope to buy back in
The health care costs of smoking are so off the charts and costing governments billions of dollars. But the tobacco lobby controls the politicians. It sure looks like XXII is fighting a loosing battle in so many ways. BIG tobacco will continue to wage War against all attempts to reduce smoking.
You said: "Started a position today. XXII had been on my WL at $1.10. Better late than never I guess."
I'm in the same boat but been watching since .85
Still a lot of room to run IMO. Holding long. Loving the way management is executing.
Just hope there's no more dilution and we see a partner.
Newly invested here. All I'm interested in is continued growth. It's up to management and sales team to execute well. With greater legality coming, growth and thus share price appreciation is a given as long as management has what it takes. Do they????
Cheers
XXII will start showing up on a lot of new radar screens in the coming days and weeks generating more momentum and volume.
What's the sentiment for another run like last October from .80 something to $1.50? That run was very news driven and I assume we'll need another batch of very positive PRs for another run.
Yes mate! Huge lesson!!
I just have to wait for some significant catalyst with volume before considering a re-entry in xxii. Not willing to risk the "possibility" of a positive catalyst as sp could very easily trend lower. Then again, the chart does show some potential. Have to break through and have .80 as new support.
Re: insider purchase
I agree, it's not much, but the retail crowd invariably responds favorably to it.
Insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.
The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Probably not in this case because it's such a small value purchase, but sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying. Not sure how to determine this.
At the end of the day, it's institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity but twice as important to make sure the trend of the stock coincides with the insider buying. Let me say that again: MAKE SURE THE TREND OF THE STOCK COINCIDES WITH INSIDER BUYING!
I'm still on the fence with regards to buying shares. Got a bent burned on the move from 1.28 to 1.05. Was on margin and needed to sell.
Why doesn't the distributor and/or xxii create in-store demand with some kind of info distinguishing Red Sun??
Not sure why you think that particular page is part of this sell-off. It has nothing to do with this drop. SP has been dropping before this report. It's macro issues - entire Bio sector is selling off big time like Aug/Sept.
As another member said:
The improvements in patient 1 is nothing short of miraculous and life-changing. Patient 2 has also benefited with B & B. This is huge!! Talk to any chronic spinal injury person and they'll tell you how huge this is.
And there's still time to see if 4 and 5 improve.
Give it time!
If LONG, then these hiccups in the overall market will pass and we'll see SP increase. But that's unfortunate for some of us that bought above $7.
RIGHT ON! Thanks for sharing this link!!
I completely agree with you. I've been thinking of the comparison to NVIV as well. They have to get off OTC relatively soon to get better coverage and greater Tute investment. The data on the next 12 patients will be an interesting period for this company.
Long & Strong!