On Float Size and Effective Float
Float turnover is a really key metric
The more times the float can turn over, the higher a stock can go
Which is also why volume is such an important metric as well
And we are now starting to see increasing volume and float turnover in AMMJ
If it’s a stock that makes you feel secure, where you can sleep deeply at night without any worries, then that provides a much greater probability that you are going to hold the stock for a long time
That’s part of what creates strong shareholder loyalty, which AMMJ is now instilling in its shareholder base with its recent progression as a company, from largely being a consulting company to becoming a vertically integrated plant-touching grower, processor and seller of MJ, owner of multiple dispensaries, cultivation sites and extraction labs, with the business plan of starting in Colorado, which is a great state to make your headquarters, and taking this new MJ business plan national to become an MSO (Multi-State Operator)
Strong shareholder loyalty creates a reduction in the size of the effective float
The float isn’t actually what trades, because those shares that are being held tightly are not up for sale
So the number of shares subject to being traded comprise the effective float
The greater the shareholder loyalty, the smaller the size of the effective float, and the earlier a float can lock up
Once a float truly locks up, that sets the stage for parabolic movement
If revenues are going to be increasing sharply in 2021 as a result of both upcoming acquisitions, with the MJ sector continuing to have all of its catalysts in front of us, with the discovery process by the investment community just getting started last week, then why would anyone sell now?
That just doesn’t make very much sense
The really big money hasn’t even begun to arrive yet
I think we will see start seeing those deeper pockets enter when the 1st acquisition of 3 dispensaries, a cultivation site and an extraction lab is completed, which is a Q1 event according to AMMJ
AMMJ has been moving very nicely, but I think we are only just getting started here
Stocks that wind up going on to gain 2000% or more often begin their big moves in a fashion similar to what we’ve seen so far in AMMJ
Sleek
