MJ Stocks Analysis

[dog turd cannon]

PHOT DD -

So a little background on MM activity. This is basically a repeat of what I posted to the FITX board so I will be terse here. MM acquire stocks in certain sectors that are hype-able. Over the last few years solar, gas, biofuels, etc have been in this category. Pot has been hybe-able now since 2004. They buy these a very, very low pps and they buy tens to hundreds of millions of dollars.

Just follow along below and realize legalization of pot has been going on since the 70's.

http://en.wikipedia.org/wiki/Timeline_of_cannabis_legalization_in_the_United_States

Every year or so there is some big news and every few months some little news. So what MMs do is buy the stock in large quantities. Then wait for the hype. They restrict volume for awhile and then one morning flood the market. That is what happened to almost all of the pot stocks two weeks ago. They will restrict then flood numerous times and then slowly march the stock back down to start over. You can watch the L2s and witness this restriction of liquidity.

PHOT had a muted version of this because a few weeks before PHOT had news of new board members that started the stock up a bit early. No this long/short MM play works as long as the company has no real value. If the company had value then the buy pressure would break the ceiling they put on price and the short play fails and the MMs loose lots of money. Honestly, I have never seen this happen.

MM's don't make their money on the hype (granted they make a lot of money in the hype) - they make money in the periods of no news, ie from now until April when Wash St. will have the meeting to discuss the implementation of its proposed law. So as I have stated before the stocks will get marched down, to cause people to get frustrated and to cover the short... and then the stock is diluted.

Whether you believe this narrative is unfolding in the pot sector or not the only thing you need to know about PHOT is this, on February 7th they will dilute:

"To approve an amendment to the Company’s Certificate of Incorporation to increase the authorized shares of common stock of the Company (“Common Stock”) from 1,000,000,000 to 3,000,000,000...It also authorizes 10,000,000 shares of “blank check” Preferred Stock"

That phrase "blank check" has never been used to mean anything good for anyone other than the person holding it even if you think 3x the number of shares is wonderful news.

The way these organizations work is there is always a person whose voting rights guarantee a majority so that the dilution is allowed no matter what.

If you want more fun stuff - just like FITX has EDXC, PHOT has CANX-USA.

http://www.bizapedia.com/nv/CANX-USA-LLC.html

They have an agreement with CANX USA, which has only been around for a few months and honestly doesn't have any employees, any business filings, in fact of you google "CANX USA" -Growlife you will see CANX doesn't even exist except that PHOT created it. It is not as elegant as EDXC/FITX incestuousness.

PHOT is relatively new to the MM game so this should play out a few more times.