MJ Stocks Analysis

[nopancakemix]

Extra Crappy with a Side of Anger
Man people are pissed! Reading these boards is hilarious. Reminds me of the numerous @APL pullbacks of the years since 2003 when I bought my first shares.

As long as people understand this is part of a yearly cycle with MJ stocks, then maybe this plunge wouldn't be so panic inducing. For the past 3 years the MJ market has done this. Back in Nov/Dec 2011 I got into CBIS. By Q1 CBIS shot up over 1000% in a few days. I sold 2/3 and held the rest thinking it would go to a dollar. It didn't. Instead it sold off.

Later that year I rolled some of the profits into MJNA and ERBB. By the following Q1, MJNA was up nearly 2000%. Again I sold, this time 1/3 but expected MJNA to go to a dollar. It didn't and sold off the rest of the year. By then I started seeing a pattern.

Then last November, I bought a massive chunk of ERBB below .002. The following Q1 ERBB popped over 5000%, I sold 1/3 but this time I was not expecting a dollar. At least not any time soon.

See the pattern here?
Cyclical. Not because all MJ stocks are scams. Not because of a Seeking Alpha article. Not because of "shorts" or market bogeymen. But because this is a cycle.

Some time this cycle will be broken. Maybe it's 2014.
Remember this is the penny stock markets. The weakest of hands hold cards in this market and the lowest form of traders scalp these stocks. Wild swings are just part of the game. I've only traded pennies for 3 years after finding out about publicly traded MJ stocks and I wouldn't dare slum the penny stock arena otherwise.