Equijohn,
Interesting your perspective is, think on it I must.
I believe you are right about Mcig and also about the MMJ micro cap sector in general. The SEC lately seems to be rather adamant about spinning the MMJ micro cap stocks in a poor light along with using scare tactics to drive investors away from the micro cap stories. I think it is important for the SEC to allow the markets to decide winners and losers and allow the markets to decide for itself which are scams, which are legit, which are poor performers and risky bets and which are good and have future potential; the recent bad press seems to be more of the SEC's usual throwing the baby out with the bath water.
The PHOT story is not looking good at all. The SEC halt has led to a massive sell off amidst worries of shady business practices in PHOT. CBIS has been falling over the last few months, RFMK looks to be breaking down technically, along with a general downtrend for most of the MMJ micro cap stocks. MJNA is one of the few which has kept a decently strong valuation through all the turmoil. One also must remember though that all of these micro caps in this sector were up HUGE from the initial momentum rally they experienced many months ago on the MMJ boom (legalization, news etc), so it is not surprising that most likely needed to refresh the stochastics and technicals and also allow the fundamentals to weigh the temporary pop in value from the technical moves. In the short term the stock market is a voting machine (especially in illiquid volatile manipulated micro caps in the PK scum swamp), and in the long term the stock market is a weighing machine. I think we are seeing this play out over time. However in my opinion, the SEC needs to stay out of the game of pre-warning investors generically and generally about a particular sector and focus on the more dire problem of the massive systemic risk in the market caused by all the fraud, manipulation, NSS and HFT in the market place. We see the SEC going after a few micro cap no-name CEO's for low-ball conspiracy charges, we see them giving small slaps on the wrist every month to a multitude of hedge funds for not properly reporting all their short sale figures (which accounts for massive naked shorting and hence manipulation in these stocks), we see the SEC standing idly by while rampant high frequency manipulation ruins sentiment and legitimate fair price discovery in the market place and all the while they seem quite focused and using much of their energy to pound the table about how investors should be weary of the MMJ micro caps?! LOL The SEC has become the laughing stock of Wall Street and the cronies. There is a revolving door between the largest Wall St firms and the SEC so a myriad kick backs under the table are sure to be going on. It is disgusting. The Republic is at risk.
I think ultimately there are indeed some scams and some shady company practices going on in the micro cap stock market of companies, however to paint them all with the scam brush is IMO going too far. There is only one way CEO's can tap the capital market for raising an operating budget for their public companies in the American society in pursuit of the American dream and that is via dilution in the micro cap stock market. Many fail and a few succeed. Why does the SEC even allow the OTC and PK market exchange to exist if they are going to constantly halt certain stocks and globally lock others on a mere hunch that something may appear amiss from their perspective on per their own opinions? I say if they are doing their jobs properly then they protect the public by investigating companies and if they find criminal activities then they should bring litigation and charges against the INDIVIDUALS involved. Otherwise, they should keep their opinions to themselves about whole new emerging sectors. I think it is wrong for a government enforcement agency to be heckling negativity to the populous from the bench.
I think you are right in thinking that the MMJ micro cap bubble may have burst, indeed, it is likely so, though for how long the doldrums could last is anyone's guess. I believe that the cream will rise to the top, if allowed to by supposedly "FREE MARKETS".
Do or do not, there is no try.
GLTY
Interesting your perspective is, think on it I must.
I believe you are right about Mcig and also about the MMJ micro cap sector in general. The SEC lately seems to be rather adamant about spinning the MMJ micro cap stocks in a poor light along with using scare tactics to drive investors away from the micro cap stories. I think it is important for the SEC to allow the markets to decide winners and losers and allow the markets to decide for itself which are scams, which are legit, which are poor performers and risky bets and which are good and have future potential; the recent bad press seems to be more of the SEC's usual throwing the baby out with the bath water.
The PHOT story is not looking good at all. The SEC halt has led to a massive sell off amidst worries of shady business practices in PHOT. CBIS has been falling over the last few months, RFMK looks to be breaking down technically, along with a general downtrend for most of the MMJ micro cap stocks. MJNA is one of the few which has kept a decently strong valuation through all the turmoil. One also must remember though that all of these micro caps in this sector were up HUGE from the initial momentum rally they experienced many months ago on the MMJ boom (legalization, news etc), so it is not surprising that most likely needed to refresh the stochastics and technicals and also allow the fundamentals to weigh the temporary pop in value from the technical moves. In the short term the stock market is a voting machine (especially in illiquid volatile manipulated micro caps in the PK scum swamp), and in the long term the stock market is a weighing machine. I think we are seeing this play out over time. However in my opinion, the SEC needs to stay out of the game of pre-warning investors generically and generally about a particular sector and focus on the more dire problem of the massive systemic risk in the market caused by all the fraud, manipulation, NSS and HFT in the market place. We see the SEC going after a few micro cap no-name CEO's for low-ball conspiracy charges, we see them giving small slaps on the wrist every month to a multitude of hedge funds for not properly reporting all their short sale figures (which accounts for massive naked shorting and hence manipulation in these stocks), we see the SEC standing idly by while rampant high frequency manipulation ruins sentiment and legitimate fair price discovery in the market place and all the while they seem quite focused and using much of their energy to pound the table about how investors should be weary of the MMJ micro caps?! LOL The SEC has become the laughing stock of Wall Street and the cronies. There is a revolving door between the largest Wall St firms and the SEC so a myriad kick backs under the table are sure to be going on. It is disgusting. The Republic is at risk.
I think ultimately there are indeed some scams and some shady company practices going on in the micro cap stock market of companies, however to paint them all with the scam brush is IMO going too far. There is only one way CEO's can tap the capital market for raising an operating budget for their public companies in the American society in pursuit of the American dream and that is via dilution in the micro cap stock market. Many fail and a few succeed. Why does the SEC even allow the OTC and PK market exchange to exist if they are going to constantly halt certain stocks and globally lock others on a mere hunch that something may appear amiss from their perspective on per their own opinions? I say if they are doing their jobs properly then they protect the public by investigating companies and if they find criminal activities then they should bring litigation and charges against the INDIVIDUALS involved. Otherwise, they should keep their opinions to themselves about whole new emerging sectors. I think it is wrong for a government enforcement agency to be heckling negativity to the populous from the bench.
I think you are right in thinking that the MMJ micro cap bubble may have burst, indeed, it is likely so, though for how long the doldrums could last is anyone's guess. I believe that the cream will rise to the top, if allowed to by supposedly "FREE MARKETS".
Do or do not, there is no try.
GLTY
