Hit the 50SMA but to Hit .50.....
Closing the week above the 50SMA would have been nice but the selling pressure seems too strong. Lots of weak hands, flippers and even some warrant selling is to blame but the daily volumes were pretty light so there's little conviction in either side.
For longs, if you are a believer, these prices may be good for small entries although I admittedly held out for below .015 before buying a few weeks ago and would recommend the same unless you're just itching to get in. Over the past few years, Oct-Dec were the best times to buy MJ equities as they seem to bottom year end and top in the start if the new year.
For shorts, not much room on the downside to play with. I'd expect to see a lot of buying pressure if ERBB manages to slip below .01 which will make for a measly half penny return if you time the trades right. It seems like a lot of risk for little reward especially when the slightest company or political announcement could tear the roof off the industry.
Now to address the recent UptickNewswire article and the price target of .50, yes 2 shiny quarters. I'm not familiar with Uptick so I don't put much credence on the "who" that was behind the story. With saying that though, I'd like to add I don't pay much attention to the WSJ, Barron's or other publications when it comes to Fortune 500 companies. Also Uptick is not JPM or GS or Blackstone so I'm not thinking the organization is much of market mover. The information in the article was just a recap of recent American Green news followed by a pretty outrageous price target of .50
Don't get all fired up because I called it outrageous because it is. For now. But the article also provided a time frame for that price target which was a year. Maybe if next month rollout of half a dozen new machines is executed smoothly, followed by more Zazzz placements, ERBB will be on its way to .50
Oddly enough, in March 2014 during the Cannaboom I had a target on ERBB for .22 and the fat finger trade that paints the false 52week hi at .216 is ironically close to that number. Let's get to .20 before we even consider .50.....(insert crawling/walking cliche).
