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.
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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.
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