Former Federal Reserve Chief, Alan Greenspan noted that “stock prices can deviate from ‘fundamentals.’” He said, “human propensity to swing between euphoria and fear, which, while heavily influenced by economic events, has a life of its own. In my experience, such episodes are often not mere forecasts of future business activity, but major causes of it.” I contend that it is largely fear and euphoria that is driving share prices in the cannabis sector and not fundamentals. We all know the cannabis market is very big and legalizing means that businesses with profit and loss statements, balance sheets and cash flows can be built to capture profitable slices of that very big market opportunity. However, the legality is still evolving and the market is far too early on to produce reliable historical ‘fundamental’ measurements and benchmarks. That leaves cannabis share prices strongly linked to ‘fear’ and ‘euphoria’ with little in the way of ‘fundamentals’ to rely on for investment decision making.
The PPS of North American Cannabis Holdings reflects fear and euphoria within the cannabis sector. Fortunes can be, and have been made on investing in fear and euphoria. They can likewise be lost. I’m not hear to encourage euphoria or fear one over the other or in anyway recommend an investment strategy. On the contrary, regardless of PPS performance, we plan to continue executing on our business plan here at North American Cannabis Holdings – developing the AmeriCanna Cafe and EVERx and piloting new projects under the American Seed & Oil Company. We have no plans to execute a reverse split in an effort to see a higher PPS. We will simply continue to execute on our business plan and let the market decide on its level of confidence. We have every intention of sustaining through this exciting entrepreneurial time in the emerging cannabis sector until such time we can generate fundamental performance that might weigh more into future investing decisions than it does today. Once more, we’re in it for the long-haul.
