MJ Stocks Analysis

[dog turd cannon]

A little advice -

Do not trade in a sector of stock you are emotionally connected. It will blind you to facts that oppose your position.

So, if you have been trading pennies for ten years then by all means play the pot sector. You most likely know how the game is played but if, this sector is your first foray into penny trading AND you really believe pot is the future then there are three things you need to realize.

One - Most penny stocks are scams, regardless of if they are about weed or gold mining or woman's underwear. In fact, they are not too far removed from Nigerian "Prince" Scams. They don't even attempt to hide it because, much like the Nigerian Scam, they only want to lure in the true suckers. Then ones that will believe all the way to 0.000. Don't be one of those people.

For example, someone (who I don't want to call out) posted to me a Yahoo article showing that a company lowered it's authorized share value. As a retort to my posting of a cut-and-paste from an SEC filing. First of all stop reading Yahoo Finance… second of all the article is 100% accurate and purposefully written to find the suckers. Because, three months before that same company increased it's preferred authorized share level by 400%. So, there is in effect more shares. And, preferred shares are usually converted 10 : 1 so in reality there are a lot more shares. And this fact wasn't published with much pomp. My school age son is sharp enough to read three more paragraphs in the filing document and catch that little trick. But, if I told him Goofy was just a man in suit he'd probably not believe me. That is because he has an emotional attachment to his idea of goofy but not this stock.

In fact, what the finance article was doing was obvious. It is so obvious that if you don't see through it you are so blinded by your own ego or hope or naivety or maybe you are filthy rich and just don't care - that means you might be that person that will probably ride the ship all the way down to 0.000.

Two - It is better to leave money on the table than to loose. If you made 20% don't sweat that the stock goes up 30%. My guess is most of you make money, loose money. I have already posted 7 years of trading history. I don't loose money. Feel free to go look at that trade log.

And three - These CEO's are not your friends. They have, for the most part, have no interest in the common shares. Their salaries/benefits are NOT tied to the common share price. A few are issuing options most are just giving out par valued shares. And, some of these "companies" are not in fact what you would call a company. They are one person who is CEO,CFO,Treasure, VP, etc sitting in their home office somewhere…. or a company with 15ish employees all of whom are director or VP's.
I have gone to some of their offices and found expired leases, notifications of failure to pay electricity, and a shoe company where there wasn't supposed to be shoes.

And I am not joking… do some research and you will find the pot sectors stocks I am talking about. There are more than one for each of the above...

If you met a person in a bar who was CEO of his own company and the sole employee would you believe him? If you met 15 VP's of a company with 17 employees. Would you believe them?

Here is some historical perspective to illustrate all these points… a few years ago one of these pot sector stocks was involved in a 600k pump and dump scheme… you can read all about here. This is not information to dissuade anyone from anything. Just for the new people you need to be aware of the degree to which companies can be deceptive.

http://www.otcmagic.com/lifetech-industries-inc-otc-ltch-the-billion-juggernaut

That is right… a company that made 12k paid (or had people associated with it) pay 600k to advertise the stock. I don't want to give the story away but the company never made it to the 1 trillion dollar evaluation. This is more the norm of pennies than the exception unfortunately.

One of the current pot sector companies has a nice section in their s-1 explaining why the previous management is currently serving in federal prison...

Currently, there are almost 60 stocks that are in the pot OTC sector (some aren't strictly pennies) that I know about… and one is probably real. A few others might eventually be real. And rest aren't even trying to hide the fact they are scams.

There may be a few I don't know about, but since I wake up every morning to emails that filter and parse through every new filing to the OTC and SEC I doubt I have missed any or that I won't know about a novel MJ stock before it even has time to release a press release.