The great Green Rush of 2014 continued Tuesday as Next Gen Metals (
CSE:C.N,
Stock Forum) rode the Mary Jane wave to a 25% increase on the back of increasing talk positioning the company as the ‘
venture capitalist to the industry’.
Led by CEO Harry Barr, Next Gen (which, full disclosure, is a Stockhouse Publishing client) has laid out a business concept of being financier to marijuana plays, as well as creating the first medical marijuana investment conference. The company is currently looking over dozens of business plans in its pursuit of a strong foothold in the recently legalized industry.
While other companies without publicly disclosed business plans (Satori Resources, for example) have climbed fast on speculation and an influx of dollars into the sector, Next Gen has taken the longer view that the real money will be made on the ground floor of the many supporting industries around the marijuana space, rather than waiting for Health Canada to (perhaps) issue a grow license.
C.N is up from $0.10 in late February to $0.55 now, a 550% jump.
Growlife (
OBB:PHOT,
Stock Forum) has also seen growth Tuesday, up 12.3% on 28m volume. That company has been acquiring MMJ-related IP and brands for some time. That company is up nearly 200% since the start of the year.
With a confirmed move into the marijuana space, these companies have not been the most volatile in the sector over the last month, but they have shown the largest gains. Satori (
TSX:V.BUD,
Stock Forum) has climbed from $0.01 on January 1 to $0.10 today, but it also has the wildest swings on a daily basis as daytraders and shorters look to snap up half cent gains and losses several times a day, depending on how deep into their own supply they happen to be.
Satori was down 16.6% Tuesday on 2.7m+ volume, and still hasn’t discussed any firm business plan beyond hiring a consultant. Don't get me wrong, consultants are lovely people, but they're not a profit stream.
Terra Firma Resources (
TSX:V.TFR,
Stock Forum) took the biggest pounding in the space Tuesday, dropping 28.5%, but the way these companies work, that might make it the most attractive play tomorrow for the bounce crowd. TFR has also announced a consultant hiring, which I'm seeing as the weed equivalent of flying over a uranium claim in a plane, looking for shiny rocks.
Ansell Capital (
TSX:V.ACP,
Stock Forum) lost 21.4% on the day, while 88 Capital Corp (
TSX:V.EEC,
Stock Forum) shed 16.6%, leaving it with a nanoscale market cap of just $292,000 and a coiled spring share structure with just 11.7m shares outstanding. But don’t jump in yet –
Stockhouse Bullboarders are talking about insider sell-offs, 8-to-1 share rollbacks and low-price private placements. More information needed before you commit the RRSP.
Supreme Pharmaceuticals (
TSX:V.SL,
Stock Forum) resumed trading early Tuesday after halting for most of Monday, but seemed to screw up their timing somewhat and took an 18.1% drop. If I’m correct, and I may well not be, the company intended to halt trading, get a press release out about an
option deal to buy an MMJ production business, and keep trading halted long enough for everyone to hear about it. Problem is, the
news came out before the halt, so the extended non-trade period seemed to do little more than tie up daytrader cash, which was summarily pulled out at the first chance the following day. 4m shares were traded in the first hour after trade resumption, and 16.5m were traded on the day. Lots of turnover, not exactly the happiest day for longs.
NEW PLAYERS:
Vancouver-based Cavan Ventures (
TSX:V.CVN,
Stock Forum) has jumped into the 420 business, but is taking pains to remind investors that they’re still keeping a foot in the mining game, perhaps the first company to
try to have it both ways.
Says Peter Swistak, President of the company, "While we advance our flagship graphite properties, we are actively moving to strengthen our board and management team to add significant value through the Legal Medical Marijuana space," adding, “Given our reputation in the mining business as company builders, we have had substantive opportunities brought to our attention which we are treating as added value to enhance and expand our mandate of driving consistent shareholder value."
Cavan is up 14.2% on its marijuana debutante ball on 3m+ volume, but likely won’t rocket until those long term mining shareholders waiting for an exit have worked through their holdings.
Prominex Resources (
TSX:V.PXR,
Stock Forum) has announced that it is evaluating new projects in the hemp space, otherwise translated as “me too.” That news led to a 16.6% lift on the day as marijuana sectors campers began positions.
Gordon Barron, CEO and President of the company
stated "Recent changes to legislation in Canada and the US have dramatically altered the growth potential of these industries. Industrial hemp has many uses, including paper, textiles, biodegradable plastics, construction, health food, bio-fuel and medicine. It is increasingly apparent that a growing proportion of the medical community believe that medical marijuana and more specifically "cannabinoids", hold potential to help patients who are suffering from a variety of ailments and illnesses. The company intends to pursue all opportunities that may increase shareholder value in the new and exciting field of medical marijuana use and the hemp industries."
INSIDE DIRT:
I have it on good authority that Southbridge Resources (
CSE:C.SOU,
Stock Forum), though quiet, is indeed working hard behind the scenes in a real way with a mind to entering the MMJ space, and is currently evaluating options. No shares free trading right now but expect news from that company soon and likely a financing to make their plans happen. Shift this one into the ‘real plan’ column for now.
The much-awaited entry into the market of multi-partner play
Tweed, which is building out a grow facility that it has been given official Health Canada permission to start work on, will likely see the ticker symbol V.TWD, according to bullboard scuttlebutt. The company is touting that 10% of its product will feature 'compassionate pricing', of $5 less per gram, which will see 90% of their customers blowing through a large percentage of their disability cheques.
The MJ Index:
| C.N |
0.530 |
+0.090 |
+20.45% |
| V.AMS |
0.175 |
+0.025 |
+16.67% |
| V.PXR |
0.035 |
+0.005 |
+16.67% |
| PHOT |
0.580 |
+0.077 |
+15.38% |
| V.CVN |
0.040 |
+0.005 |
+14.29% |
| EAPH |
0.056 |
+0.001 |
+1.28% |
| C.AAF |
0.135 |
0.000 |
0.00% |
| MDRM |
0.150 |
0.000 |
0.00% |
| C.SOU |
0.050 |
0.000 |
0.00% |
| FWSI |
1.750 |
0.000 |
0.00% |
| ROSV |
0.093 |
-0.002 |
-2.32% |
| V.BUD |
0.115 |
-0.005 |
-4.17% |
| V.NSP |
0.280 |
-0.015 |
-5.08% |
| C.TOP |
0.700 |
-0.050 |
-6.67% |
| V.PFE |
0.120 |
-0.015 |
-11.11% |
| V.THC |
0.120 |
-0.015 |
-11.11% |
| V.SNR |
0.160 |
-0.020 |
-11.11% |
| V.SEW |
0.170 |
-0.025 |
-12.82% |
| V.WIF |
0.135 |
-0.025 |
-15.62% |
| V.EEC |
0.025 |
-0.005 |
-16.67% |
| V.SL |
0.045 |
-0.010 |
-18.18% |
| C.ATT |
1.850 |
-0.440 |
-19.21% |
| V.ACP |
0.055 |
-0.015 |
-21.43% |
| V.TFR |
0.025 |
-0.010 |
-28.57% |