marijuanaindex,org index compilation of 36 MJ stoc
Post# of 56323
Posted On: 03/28/2014 8:51:49 PM
marijuanaindex,org index compilation of 36 MJ stocks shows combined 548.19 volume and 5.2B market cap. Of this, FITX is indexed 5.43% with 286.78m market cap
It is interesting that FITX has 6th highest index percentage and is 7th market cap yet is only 30th on pricing.
This tells me the price is likely (a) being held down by MM's for a run up on licensing (b) formerly RS now traded have been sold into the market and due to volume have suppressed pps or (c) a combination of a and b
The short history as a percentage (in my opinion) is not enough to have kept pps this low so other market pressures such as referenced above could be in play here. With such low volume recently longs are staying long.
Market absorption as a function of market liquidity may significantly effect pps in the next several months if shares becoming unrestricted between April - September enter the market. Many have said the market will absorb these shares but it is important to consider market dynamics with such a huge quantity of shares. If you factor in volume of shares X a targeted pps (even at .10) it is difficult to imagine how pps even with licensing will have much ability for any real significant sustained growth because it takes new shareholder money to drive volume/pps.
Several factors could offset this as the market itself continues to grow and revenues start flowing or value added JV's, uplisting, etc., are likely to occur. Big money will probably come in after the market stabilizes based on revenues. Just my opinions here.
Responses are appreciated. If I missed something or left out something please let me know. I am interested in good solid information that can either support or change my opinions here. We are all in this to profit and I believe most on this board are longs. That is why I am posting here. To get feedback. If you are going to state "shares will be absorbed" please provide some math to support assertions because the dollar volume is critical to pps health.
Thanks in advance.
It is interesting that FITX has 6th highest index percentage and is 7th market cap yet is only 30th on pricing.
This tells me the price is likely (a) being held down by MM's for a run up on licensing (b) formerly RS now traded have been sold into the market and due to volume have suppressed pps or (c) a combination of a and b
The short history as a percentage (in my opinion) is not enough to have kept pps this low so other market pressures such as referenced above could be in play here. With such low volume recently longs are staying long.
Market absorption as a function of market liquidity may significantly effect pps in the next several months if shares becoming unrestricted between April - September enter the market. Many have said the market will absorb these shares but it is important to consider market dynamics with such a huge quantity of shares. If you factor in volume of shares X a targeted pps (even at .10) it is difficult to imagine how pps even with licensing will have much ability for any real significant sustained growth because it takes new shareholder money to drive volume/pps.
Several factors could offset this as the market itself continues to grow and revenues start flowing or value added JV's, uplisting, etc., are likely to occur. Big money will probably come in after the market stabilizes based on revenues. Just my opinions here.
Responses are appreciated. If I missed something or left out something please let me know. I am interested in good solid information that can either support or change my opinions here. We are all in this to profit and I believe most on this board are longs. That is why I am posting here. To get feedback. If you are going to state "shares will be absorbed" please provide some math to support assertions because the dollar volume is critical to pps health.
Thanks in advance.
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