Investors Who Caused Sudden Spike in Marijuana Stock Had the Wrong Company
From the Buzz & Banter: A news mention fuels speculation in Advanced Cannabis Solutions, but only because its ticker was accidentally broadcasted.
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 was CannaVest (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.
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 firstname.lastname@example.org.
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