Two days ago I posted the message below on the Buzz & Banter
[subscription required], and The Daily Ticker talked to me
further about marijuana stocks. However, it turns out there is more to the news item that prompted me to discuss these stocks in the first place. Here's the original post:
Are the Price Movements in the Marijuana Sector Bullish?
Last year, I offered that cannabis was my single best investment theme for the next decade. While we all had to do our own work -- and steer clear of the get-rich-quick penny-stock schemes -- there were secular tailwinds in the space.
Advanced Cannabis Solutions
(OTCBB:CANN) was mentioned on CNBC 15 minutes ago. It was trading 16% higher into the mention, and it is now trading 63% higher. Sixty-three percent! On the session!
There are only a few "real" companies in the space, at least defined by market cap (we've discussed GW Pharma
(NASDAQ:GWPH) on the Buzz & Banter
before), so perhaps that's one of the reasons we're seeing this type of move.
As much as I love the long-term opportunity, however, I have a hard time painting this type of volatility (and speculation) as bullish on its face.
Well, to further prove our point about the ready-fire-aim mindset in the marketplace, the cannabis stock that CNBC mentioned on Wednesday
(OTCMKTS:CANV) -- but they mistakenly put up a chart for Advanced Cannabis Solutions, whose ticker is CANN, which subsequently spiked 62%!
But there's no froth in this tape.
Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO.
No positions in stocks mentioned.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at email@example.com.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.