Last updated at market close:
Someone bought 93,000 shares in rumored ganjco Southbridge Resources (
CSE:C.SOU,
Stock Forum) today, driving the share price up from $0.05 to $0.30, a 500% lift.
But don’t get any ideas of getting in on that. You can’t have any, because nobody else is selling.
Oh, you’re welcome to make an outrageous bid, but there’s only 6m shares out, most (if not all) of them are held by insiders, and unless you’re prepared to pay a premium, don’t expect to get a bite.
In a way, this may be the best medical marijuana play to date. Build interest but remove the ability to buy and wait for the true believers to fork out above the odds.
I know Southbridge is deep in negotiations regarding exactly where they’re going to enter the business, and how, but they’re turning this into a vanity play right now by holding stocks away from your filthy fingers.
- Enertopia (CSE:C.TOP, Stock Forum) has had a nice trading day, earning back yesterday’s losses and then some, putting a 65% charge on their share price on just half a million volume.
- Abbatis Bioceuticals (CSE:C.ATT, Stock Forum) is up 28% on 1.4m+ volume, with mystery player 88 Capital Corp (TSX:V.EEC, Stock Forum) up 20% on volume so small you could put it in your pipe and smoke it.
All of which raises an interesting question.. with so many weed stocks hitting the CSE, which has long been the ‘forgotten exchange’ of the Canadian stock market landscape, is the CSE now becoming the Cannabis Stock Exchange?
- Terra Firma Resources (TSX:V.TFR, Stock Forum) is in play again today, up 50% to $0.03, but it’s hard to make money on that stock unless you’re trading huge blocks and you’re okay with half penny gains that take three days to sell.
Terra Firma doesn't appear to be too deep into their plan, according to comments made to a Reuters reporter yesterday. "It has absolutely blue sky potential because no one really knows. At this stage, you want at least to have some exposure to it in case this is the next biggest thing," said James Nelson, a director of Terra Firma.
Not so many companies crushed today as the last few, as sentiment starts to return to the sector.
- Crailar Technology (TSX:V.CL, Stock Forum) lost 9.6% after another quarter of losses and Girl Scout cookie sale-level revenues. Crailar loses $3.2m every quarter, and then raises the same amount to cover it. They are doing business in the hemp fiber space, and have their goods in the hands of some big players (IKEA, Adidas), but that’s not translating to money, let alone the ‘legal weed dealer’ money that everyone is after right now.
Funny thing: Crailar announced this morning it’s handing out
1.5m ‘incentive’ stock options to staff, management, directors and consultants, a day after announcing continued losses...
- Pan American Fertilizer (TSX:V.PFE, Stock Forum) is down again for the seemingly infinity-th time, but few long holders will give a damn. PFE was for a long time a $0.05 stock as is looked to build out fertilizer projects in South America, but a very loose association with the MMJ space shot them up as high as $0.185 a few weeks back, giving those longs a nice profit-taking point. It’s $0.115 now, having finished lower almost every day of the last ten, but that’s still 250% up from its natural resting place.
UPDATE: PFE is in the game. From a news release just put out:
"[$500k of new financing] will now allow Pan American to better define the opportunity to be the preferred supplier of specialty fertilizers specifically tailored for various cultivars of medical marijuana" Randy Wright explained. We will work with the best scientists in Canada and Uruguay together with marijuana producers in Uruguay to ensure that our products best meet our customers' needs" Right continued.
To further assist Pan American, Mr. Nicholas Konkin of AgriConsultant, will advise Pan American with respect to potential Canadian and Uruguay partners already engaged in the production of medical marihuana. Mr. Konkin has over five years of capital markets experience specifically joint ventures and issuer/project funding.
The current confusion with respect to the new medical marijuana guidelines coming into effect in Canada on April 01, 2014 has no impact on Pan American since we do not currently contemplate being producers of marijuana in the Canadian market.
- Affinor Resources (CSE:C.AFI, Stock Forum) is looking to raise $2.5m in financing, and issuing 600k shares to management and consultants to settle debts. The financing will be used to buy into marijuana opportunities, while the debt settlement in shares rather than cash is an indication the company is legitimately in play as a long term MMJ project and looking to clear its books.
- Modern Mobility Aids Inc (OBB:MDRM,Stock Forum) is doing the ‘we got a consultant’ thing. Look over their chart.. it’s starting to look legit, and their business model is becoming clearer.
Declan French, CEO of Modern Mobility Aids Inc.,
said, "Dr. Rothbart brings invaluable experience to our company with over 25 years in the field of pain management and will help us
identify and develop cannabis strains that are therapeutically effective."
NEW PLAYERS:
* PMX Communities Inc (
OBB:PMXO,
Stock Forum) appears to be giving up the ‘gold dispenser terminal’ business (apparently that was a thing), and has now
engaged cannabis consultants to get in on the ganja trade to begin selling – wait for it –
medical marijuana vending machines.
Imagine how your life would have been in high school if you could not only get Doritos out of a vending machine, but condoms and hash brownies? You’d never go home!
PMX says it’s targeting 18 US states for its dispensary machines.
* Not really a new player, but finally operational under their new name is Arris Holdings... now Global Hemp Group (
CSE:C.GHG,
Stock Forum), complete with news of an
oversubscribed $300k financing round. Arris converted one old share into five GHG shares, which has blown out their share structure to 100m+, and their price to $0.16 per.
INSIDE DIRT:
* Lots of talk at the Blackstone Ventures (
TSX:V.BLV,
Forum) Bullboard about how that company may be about to go all Mary Jane. The talk is mainly coming from three very ‘enthusiastic’ posters who have been relentlessly pushing the stock, which sat at $0.005 before today.
Hey, maybe they’re right. Maybe they’ll be at the bottom floor of a big ride. Or…. Maybe they loaded up at half a cent and are looking to make a quick triple.
Important things to remember, folks – always do your own due diligence, always buy only what you can afford to lose, and when someone tells you to buy, they’re usually doing so out of self-interest, not charity.
* Easton Pharamceuticals (
OTO:EAPH,
Stock Forum) announced an LOI for a
joint venture with a Colorado-based grower and an OTCQB player with a view to locking down a facility. Because Easton isn’t based in Colorado, a JV is necessary to do the deal.
At the same time, the company has hit back at rumors that it was unable to agree to potential deals with BC growers, stating, “Although the company has still not signed a final agreement regarding any of its Canadian medical marijuana initiatives which is as a result of various reasons it is currently unable to disclose, this by no means signifies that it has ended any negotiations with any other companies previously disclosed. No other companies including current growers in B.C. have closed any transactions with any other companies and still maintain discussions with Easton Pharmaceuticals which included a personal meeting with all principals in the past few days. This also includes negotiations with another public company listed on the OTCQB exchange where another joint venture is being contemplated towards medical marijuana assets situated in Ontario Canada.”
Easton is making serious moves and it’s not looking to settle on one grow op or one hemp product. This is looking like a potential JV/VC machine. Lots of shares out has kept the price low, but the market cap is low and they have some irons in
a lot of fires.
* Satori Resources (
TSX:V.BUD,
Stock Forum): Trading still halted after they announced they'd lost one of their three directors. Best guess is the halt will remain for a while as two directors isn't enough to keep a listing, and the stock will likely face a sell-off if it resumes trading before being able to announce an awesome replacement/consulant/acquisition.
During the halt, Jennifer Boyle, CEO of the company, talked to a Reuters reporter about the sector, saying, "There is lot of stigma attached to junior resources shares... If we are getting into this space, then I want to make sure there is no real stigma attached and that what we may or may not do would be absolutely legitimate and a sound business."
No stigma attached? To weed companies? Perish the thought.
* We don't cover CannaVest (OBB:CANV, Stock Forum) in this report because, frankly, a $456m market cap on a company that sells maybe $1m a year and loses $28m is ridiculous. And because the people behind it are outright shady.
This Forbes articles gives great background on why I'm not playing in their sandpit, and why people should be REALLY careful believing the hype on medical marijuana stocks, and be especially careful in making anything but short term gamble trades.
We also don't cover Cannabis Science (
OBB:CBIS,
Stock Forum), for reasons
also seen in Forbes:
"Raymond Dabney. In 2005, the British Columbia Securities Commission up in Canada slapped a five-year trading ban on Dabney and barred him from being an officer or director of a publicly-traded company for five years after Dabney admitted to issuing 22 bogus news releases that contained misrepresentations about the revenue of Xraymedia, a Minnesota company in which Dabney was a controlling shareholder. The Securities & Exchange Commission also sued Dabney and in 2010 obtained a final judgment against him that included a disgorgement and penalty of about $190,000. The SEC launched the enforcement action against Dabney and three others in connection with a scheme to manipulate the price and trading volume of Alliance Transcription Services. Today, Dabney works as a management consultant for Cannabis Science, a cannabis formulation-based drug development company that trades on the OTCBB. Dabney is described in SEC filings as the trustee of the Bogat Family Trust, which owned 6.5% of Cannabis Science last year."
Though there are certainly companies we cover that share a shady past and/or promoter CEOs, our mission here will be to try to shine a light on those not doing right by investors and, where possible, help you know what you're getting into.
As always, however, it's down to you to do your own due diligence.
THE MARKET MOVERS:
| C.SOU |
0.300 |
+0.250 |
+500.00% |
| C.TOP |
0.680 |
+0.280 |
+70.00% |
| V.TFR |
0.030 |
+0.010 |
+50.00% |
| C.ATT |
1.880 |
+0.440 |
+30.56% |
| V.EEC |
0.030 |
+0.005 |
+20.00% |
| V.MGW |
0.035 |
+0.005 |
+16.67% |
| V.WER |
0.035 |
+0.005 |
+16.67% |
| V.AMS |
0.160 |
+0.020 |
+14.29% |
| C.AFI |
0.350 |
+0.040 |
+12.90% |
| ROSV |
0.079 |
+0.009 |
+12.86% |
| V.SL |
0.065 |
+0.005 |
+8.33% |
| EAPH |
0.053 |
+0.004 |
+8.18% |
| V.WIF |
0.150 |
+0.005 |
+3.45% |
| MDRM |
0.148 |
+0.001 |
+0.34% |
| V.ACP |
0.045 |
0.000 |
0.00% |
| C.AAF |
0.135 |
0.000 |
0.00% |
| V.BUD |
0.090 |
0.000 |
0.00% |
| V.THC |
0.120 |
0.000 |
0.00% |
| FWSI |
1.750 |
0.000 |
0.00% |
| V.SNR |
0.160 |
0.000 |
0.00% |
| V.PXR |
0.030 |
0.000 |
0.00% |
| V.CVN |
0.035 |
0.000 |
0.00% |
| PHOT |
0.553 |
-0.001 |
-0.18% |
| V.SEW |
0.205 |
-0.015 |
-6.82% |
| V.CL |
1.440 |
-0.110 |
-7.10% |
| V.NSP |
0.310 |
-0.025 |
-7.46% |
| C.N |
0.445 |
-0.045 |
-9.18% |
| V.PFE |
0.110 |
-0.015 |
-12.00% |
| PMXO |
0.021 |
-0.004 |
-14.17% |
| V.CMT |
0.225 |
-0.055 |
-19.64% |
Check back every day around noon for the daily Stockhouse Medical Marijuana Update.