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"Cannabis Stocks Are Extremely Oversold"
Cannabis Stocks Are Extremely Oversold
June 26, 2022 at 6:50 pm
Exclusive article by Alan Brochstein, CFA
You’re reading a copy of this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news.
Alan Brochstein here! Cannabis stocks finally rallied this week slightly. Since we shared our sector bullishness in this newsletter a few weeks ago, the Global Cannabis Stock Index has actually dropped a lot. The index is up nearly 4% from the multi-year closing low set during this week, and, at 16.34, it is down about 15% in June and has fallen by over 50% in 2022. With little chance of recovering the June loss in the next four days, it appears that this will be the 18th consecutive monthly decline. We will soon detail the performance for the month of all seven of our indexes.
This weekend in a video for subscribers at 420 Investor, I described how a lot of the stocks I follow are testing or have taken out the lows from March of 2020. Since then, the S&P 500 is up about 77%. Simply put, the cannabis sector has been absolutely hammered. We have shared in the past our reasons for being bullish: the expansion of many state markets into adult-use, the addition of new dispensaries in Illinois and very low valuations in our view.
We always try to understand the sentiment in the cannabis sector. Right now, sentiment is generally negative, which encourages us as contrarians. When we look at the stocks and the sub-sectors, we see a very oversold market. The Global Cannabis Stock Index made a new 52-week closing low this week at 15.76 on Wednesday. For perspective, we think it’s important to remember that the closing low in March 2020 was slightly higher than our close Friday (16.42 then, 16.32 now). It’s a near double-bottom!
The American Cannabis Operators Index is down a bit less than the overall market, having declined by nearly 47% in 2022, while the Ancillary Cannabis Index has fallen by more (53.8%). While the overall Canadian market has declined about the same as the overall market, the largest ones have been sold aggressively. Canadian Cannabis LP Tier 1 Index, which consists of five companies doing more than $30 million in quarterly revenue, has declined more than 56% and trades well below the 2020 low now. Aurora Cannabis, Canopy Growth, HEXO Corp. and Organigram have made recent lows below the 2020 lows, while Tilray still holds above its 2020 low.
When looking at the prices, there are two factors that we like to assess: oversold and overextended. The way we measure oversold is by comparing to the 150-day moving average, and the 29 stocks on the 420 Investor Focus List are anywhere from 13% to 76% below that level currently. The average is 43% below. This is quite oversold in our view. When looking at a chart, we define a trend as overextended when the 10-dma has been below the 50-dma and the 50-dma below the 150-dma for more than 13 weeks. The stocks are for the most part overextended to the downside, with several names reaching that point in mid-July.
Cannabis stocks being oversold and overextended to the downside sets us up for at least a bounce if the rally we expect doesn’t materialize. Cannabis stocks are very out of favor now, and we continue to believe that this is a good time for investors to increase their exposure.
https://www.newcannabisventures.com/cannabis-stocks-are-extremely-oversold/
House Passes Bill Permitting Weed Ads on TV and Radio
The House of Representatives this week passed legislation to permit cannabis advertising on broadcast television and radio as part of a broader appropriations measure.
PVSP back on Breakout Boards Again!
The little engine that could!
https://investorshub.advfn.com/boards/breakoutboards.aspx
17 orders for 25k each, Stuck key board?
Could be the fat finger complex or a loose connection.
Wicked commission for sure at $7 each, LOL
Starting to feel like the Conversions are DONE
If they are in fact done, the share price is going to quickly zoom to penny land.
Maybe they should Ring a Bell and let us know the bottom is in!!
Flippers getting rich, LOL
How about those flippers making all that money flipping PVSP.
First hour of trading we did 1M shares traded.
Looks like that 125M share last week has taken out most of the weak hands and flippers.
Only time will tell.
Where are the sellers? May have to Pay Up!
I hope the accumulation is not over down here, but the Sellers seemed to have vanished in thin air.
We may have to start paying up to get shares if this continues. LOL
Are we closer to a Bottom than a High?
Does anyone really believe that we have more downside than upside in PVSP?
Company market cap less than $6M on trailing revenue of $17M plus, makes no sense what so ever and that is what markets do, they over contract and then over extend prices.
Value is what you are paying for and currently it is so undervalued that it is laughable.
Accumulation continues for the smart investors, day traders not so much, LOL
Bipartisan ‘DANK Cannabis Research’ Bill Filed In Congress
This is Huge for Medical cannabis research, makes federal grants available for studies. Our minority owned KRTL Biotech will be doing research using Artizen genetically patented cannabis strains designed for various medical issues such as depression, various forms of cancer, etc. Huge dollar potential in Medical cannabis, which becomes legal pharmaceutical product and we know what pharmaceutical companies can charge for their prescription products. $$$$
Bipartisan ‘DANK Cannabis Research’ Bill Filed In Congress (Really)Published 15 hours ago on July 28, 2022By Kyle Jaeger
A bipartisan duo of congressional lawmakers filed a bill on Wednesday to set a federal marijuana research agenda and create a designation for universities to carry out cannabis studies with federal grant money.
The legislation from Reps. Scott Peters (D-CA) and Dave Joyce (R-OH) is titled the “Developing and Nationalizing Key Cannabis Research Act.” The bill text doesn’t abbreviate the title, so it’s not clear if the intent was to play into cannabis consumer nomenclature with the introduction of the DANK Cannabis Research Act.
In any case, the measure would require the National Institutes on Health (NIH) to collaborate with other agencies, including the Centers for Disease Control and Prevention (CDC) and Substance Abuse and Mental Health Services Administration (SAMHSA) to develop “a national cannabis research agenda that addresses key questions and gaps in evidence.”
That agenda must include six primary research objectives. For example, the agencies must prioritize studies into the safety and efficacy of cannabis in the treatment of multiple conditions such as epilepsy, multiple sclerosis, chemotherapy-related pain and nausea, as well as the use of marijuana as an opioid alternative.
Other agenda items include research into the effects of cannabis on “at-risk populations” like children and pregnant women, the “nontherapeutic impacts” of marijuana, the relationship between cannabis use and behavioral health, the “clinically appropriate dosages and modes of delivery of cannabis” and other public safety considerations related to potency, youth access and misuse
.https://www.marijuanamoment.net/bipartisan-dank-cannabis-research-bill-filed-in-congress-really/
Medical Cannabis Market Set to Reach USD 54.34 Billion
Artizen and KRTL Biotech are doing the research and the clinical studies now to enter the Medical Cannabis market soon with products that have clinical data behind the efficacy claims for specific diseases such as Depression, Cancer etc, which will be HUGE for us. The massive dollars are in Medical Cannabis market.
Medical Cannabis Market Set to Reach USD 54.34 Billion and is expected to undergo a CAGR of 22.1% by 2029, Industry Shares, Key Players, Size and Future Growth Analysis
Fri, July 29, 2022 at 4:00 AM·9 min read
MELBOURNE, Australia, July 29, 2022 /PRNewswire/ -- "
Global Medical Cannabis Market" the new research report added in Data Bridge Market Research's reports database. This Research Report spread across 350 Pages, 220 No of Tables, And 60 No of Figures with summarizing top companies, with tables and figures. The rapidly revolutionizing market place demands the best market and business solutions to thrive in the market.
This Medical Cannabis report contains comprehensive data of market definition, classifications, applications, engagements, market drivers and market restraints of this industry all of which is derived from Porter's Five Forces analysis. Market definition covered in this Medical Cannabis report gives the scope of particular product with respect to the driving factors and restraints in the market. The sources of data and information mentioned in the Medical Cannabis report are very reliable and include websites, annual reports of the companies, journals, and mergers which are checked and validated by the market experts.
https://finance.yahoo.com/news/medical-cannabis-market-set-reach-080000636.html
Market Cap is now $5.29 Million, LOL
How foolish is that, seriously less than 1/3 of trailing revenues of $17 plus Million.
We should trade 5-6 times forward revenue, $100 - $120M market cap.
Does anyone think you could buy Artizen for $5M, I do not think so, more like $50- 100M would be more like it, based of prior years revenue, and a lot higher next year with revenue estimated to double to $40M.
Just the morning Debt Conversions
Take advantage of this artificial price if you can, it will be over soon.
NEWS New Flower Brand launching September !!
SEATTLE, WASHINGTON, July 26, 2022 (GLOBE NEWSWIRE) - Pervasip Corp. (OTC: PVSP) (?Pervasip? or the ?
Company?), a developer of companies and technologies in high value emerging markets, together with Zen Asset
Management today announced that its partnership with BGGTG successfully launched the first of several new
brands
Utilizing Artizen biomass grown by independent cultivators, the new partnership has resulted in successfully producing high quality products manufactured by its independent laboratories and expanding sales of new Dabs4Less
and Vape4Less brands.
Based on that initial success the partners have agreed to consider additional oroduct lines and expandine the initially contemplated alliance. With vields up in all gardens there is an opportunity to expand into new product categories and gain additional market share.
Combined with the development of a new flower brand (stay tuned!' to launch in September, broadening the concentrates and vape offering, and expanding its stable of brands, efforts are made to increase sales and mar-
State can handle Legalization alone, Feds control Banking
It is a less than perfect solution, but States can and are regulating cannabis individually and it works within their borders, but the issue of Banking reform is a different animal that prevents access to capital and use of banking system including credit cards, and force companies to operate as cash only sales etc.
Currently cannabis companies are subject to IRS 280E, that keeps cannabis business from making tax deduction or earning credits that are afforded to other legal markets.
Every business needs to be able to take tax deduction etc this is nuts.
Senate cannabis hearing sets stage for legalization
Marijuana Moment
Senate cannabis hearing sets stage for legalization debate
(Newsletter: July 27, 2022)
https://www.marijuanamoment.net/senate-cannabis-hearing-sets-stage-for-legalization-debate-newsletter-july-27-2022/
US Senate holds historic first hearing on marijuana legalization
US Senate holds historic first hearing on marijuana legalization bill
author profile pictureBy John Schroyer, Chief Correspondent
July 26, 2022 - Updated July 26, 2022
The U.S. Senate on Tuesday held a committee hearing on marijuana legalization for the first time in the chamber’s history but took no action.
The hearing – held by the Subcommittee on Criminal Justice and Counterterrorism – comes on the heels of last week’s introduction of the Cannabis Administration and Opportunity Act (CAOA).
The hearing also was more of a symbolic placement of marijuana issues in the political spotlight than it was an actual debate on the bill.
That’s because the subcommittee didn’t even bother to vote on the CAOA, which was co-sponsored by the subcommittee’s chair, U.S. Sen. Cory Booker, D-New Jersey.
Rather, it was a historic moment simply because the upper chamber of Congress has for years held off on considering any major marijuana-related legislation.
https://mjbizdaily.com/us-senate-holds-historic-first-hearing-on-marijuana-legalization-bill/
Banking reform is as important as Decriminalization
Currently cannabis companies are subject to IRS 280E, that keeps cannabis business from making tax deduction or earning credits that are afforded to other legal markets.
Marijuana Moments:
July 27, 2022
In another somewhat surprising moment where he voiced the long-held concerns of the industry, Booker also said at the hearing that he’s aware of the fact that marijuana businesses are looking for fair treatment under federal tax code. Without specifically referencing the IRS code known as 280E that keeps cannabis businesses from making tax deductions or earning credits that are afforded to other legal markets, the senator said that fixing the problem could help legitimate marijuana companies “out-compete this illegal market and eventually put it further and further into the rear-view mirror.”
Senate may pass Marijuana Banking Reform !!
POLITICSIs Cory Booker Ready To Embrace Marijuana Banking Reform? New Comments Hint At Possible Pivot
Sen. Cory Booker (D-NJ) has long carried the torch of social justice in marijuana reform efforts, defiantly resisting calls to pass cannabis banking legislation before comprehensive legalization is enacted. But comments the senator made at a committee hearing he convened on Tuesday are catching attention, leaving some with the impression that the senator does see a path forward for some version banking reform in the short term.
Booker is the lead sponsor of a newly filed Senate legalization bill, alongside Senate Majority Leader Chuck Schumer (D-NY) and Senate Finance Committee Chairman Ron Wyden (D-OR). The legislation was a key talking point at the hearing before the Senate Judiciary Subcommittee on Crime that Booker chairs—but there was also some revealing discussion of the bipartisan Secure and Fair Enforcement (SAFE) Banking Act near the end of the meeting.
Booker talked about concerns with the economic status quo of the cannabis industry, especially as it relates to the negligible representation of minority-run businesses. Unlike socially and economically disadvantaged entrepreneurs, larger marijuana corporations have been able to thrive despite prohibition because they already have access to capital and financial services, he said.
https://www.marijuanamoment.net/is-cory-booker-ready-to-embrace-marijuana-banking-reform-new-comments-hint-at-possible-pivot/
Switzerland Fully Legalizes Medical Cannabis And Allows Export
Forbes
July 27, 2022
Switzerland Fully Legalizes Medical Cannabis And Allows Export
I was thinking the same thing, LOL
TCA Global was supporting a huge naked short position in PVSP, for sure, no doubt about that I have always believed it is still out there.
That 125M share day was some strange action for sure, when we can move 5 tic on a few million shares, and here we did 125M and nearly all of it went at .0018.
Let see what happen with new ticker.
PVSP investment in KRTL up 150% in a week!
Was at .02 a week ago, now at .05, 100% plus gain!!
Nothing changed but their Ticker Name, LOL
How about PVSP to ARTZ and a 40% gain!!
PVSP investment in KRTL up 27% today
PVSP Minority 5% position in KRTL up big last few days with that name and ticker change!
Will PVSP do the same when we name to Artizen and new ticker?
Stranger thinks have happen.
Well Said, .05 to 10 cents 2023
Totally agree with your comments, and I also accumulate shares nearly everyday.
The longer it stays down here, the more shares I accumulate.
PVSP on Breakout Boards Again
PVSP is #43 on Breakout Boards and we just keeps hanging around as one of the most popular stocks on the Ihub Message boards.
Always good to have eyeballs on the stock, brings in new investor along with day trading flippers, LOL
https://investorshub.advfn.com/boards/breakoutboards.aspx
Sets off my BUY alert, LOL
Do you ever BUY or SELL any shares or are you just a professional message board visitor?
5M shares is Debt Conversion again
Purple Tape trade under Bid easy to spot. Surprised they didn't get the Debt Converted with that 125M share trade day, most of which was at the .0018 price.
Everyone is waiting on the Fed Wed
Markets are waiting to see what direction we are going with respect to interest rates and what the Fed says about inflation expectations.
Sundial Grows up 828% Premkt!!
Cannabis stocks are getting JIGGY!!
PVSP blast off imminent!
.0015 Gap Filled & 4M debt converted
How about them apples! LOL
Senate confirms cannabis legalization advocate to key role at Dept. of Veterans Affairs
Published: July 25, 2022 at 11:22 a.m. ET
By Steve Gelsi
The U.S. Senate has confirmed cannabis proponent and former New Jersey health commissioner Shereef Elnahal as undersecretary for health at the U.S. Department of Veterans Affairs. As New Jersey's health commissioner, he oversaw the state's expansion of its medical cannabis program under Gov. Phil Murphy. In 2018, Elnahal Tweeted, "Marijuana needs to be de-scheduled at the federal level. Enough is enough." Secretary of Veterans Affairs Denis McDonough said Elnahal "will play a critical role in [the] VA's mission to provide timely access to world-class health care to the more than nine million veterans we serve." The Senate voted 66 to 23 on Thursday to approve Elnahal, who was nominated in March by President Joe Biden. Elnahal most recently worked as president and CEO of University Hospital in Newark, N.J.
How can a Name Change get 100% Gain? LOL
Somebody is Naked !!
Interesting to see what PVSP does on it's Name and Ticker change soon.
PVSP minority owned subsidiary KRTL up 100%
FINRA Approves Name and Ticker Change for KRTL Holding Group, Inc. From QUEENCH, Inc.
July 25, 2022 - 9:00 am
Lakewood, CO, July 25, 2022 (GLOBE NEWSWIRE) -- KRTL Holding Group, Inc. (OTC: KRTL), formerly known as QUEENCH, Inc. (OTC: QENC), is announcing that effective today, FINRA (Financial Industry Regulatory Authority, Inc.) has approved its name and ticker change from QUEENCH, Inc. (OTC: QENC) to KRTL Holding Group, Inc. (OTC: KRTL).
With all requirements being met, both of these changes are effective today. These changes are strategic and deliberate toward our rebranding efforts. KRTL can now foster a synergistic union, both in name and business model, with its customers, vendors, business partners, stakeholders, and our valued shareholders.
"Combat any manipulation of our stock"
German knows what has been going on with the manipulation of our stock and is trying to do something about it!
The Company’s board of directors has authorized a reduction of the number of authorized shares by 2 billion and will file the necessary certificates of amendment. “This is a significant step for us.
We are continually looking for ways to combat any manipulation of our stock and increase value for our shareholders. We believe this reduction leaves enough shares in reserve for us to undertake any needed capital raising efforts, while also minimizing dilution among our shareholders,” said German Burtscher, Chief Executive Officer.
In addition, the Company has decided to announce that no reverse splits will be entertained for the next 5 years. The only exception would be a future uplisting to OTCQX.
Flippers did their Flipping yesterday, LOL
2/3 of the Volume went through at .0018 yesterday. Not much range to do a lot of flipping.
I have no interest in selling any shares and still accumulating and now with the Companies announcement that there will be NO Reverse Split for 5 YEARS, the risk of holding has just been reduced significantly.
More importantly, Management is committed to creating Shareholder Value which is the name of the game for long term investors.
Stock is worth 3 to 5 cents today so no way I will sell any shares and I have a ton.
Charts are SCREEMiNG Breakout !!
125 Million shares traded is 10 x the daily average!!
VOLUME always precedes Price, we are going much HIGHER
Yearly High is .0065, NEW High Coming Soon!
Market Cap is $6M which is insane for a company that is profitable and forward revenue projected to increase from prior annual of $17M to $30M in the next 12 months.
We are trading at 20% of forward revenue when we should be trading at 6 x Revenue. Company should. be valued at $100M to $200M which would be .02 to .04 cents per share.
MM closing that GAP Up this morning
Better to get done than have to come back later. Just saw a .0016 which maybe good enough as last close was .0015 yesterday/
Conversions have to be done with 110M Volume,LOL
Well there you go, just saw 10M conversion
With over 106M traded today, any conversion that were left had to get done.
If they are in fact done, the price will sky rocket higher the next few weeks as NEWS of the audited financial hits etc.
Yep, MM loading up for the Blast Off
Blocking at .0019 ASK, and Blocking on the .0017 BID, and taking all shares they can at .0018. LOL
100M Shares Traded before 1PM !!!!
Best trading day in years!!
Pennyland is coming very soon!!