USMJ and PURA Featured As Best Marijuana Sector Pi
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What’s In Your Marijuana Stock Portfolio? Better Find Out Before A News Triggered Rally!
Read Our Industry Guidelines and Why We Like USMJ and PURA
Use Our Guidelines To Make Your Own Picks and Tell Us What You Picked
New York, NY -- September 8, 2016 -- Wall Street Corner Report
The cannabis or marijuana sector continues to capture investors imaginations. Some high flying stock prices at the onset of the marijuana legalization movement are not so long ago, and the memory of them is fresh enough to still fuel optimism today. Nevertheless, with the exception of one or two exchange listed stocks with share prices outside many penny stock investors entry price range, the marijuana sector has been relatively flat over the last year.
Our sense is that the sector is looking for an industry wide news event that ignites the next rally. So what marijuana sector stocks are you accumulating to be prepared for a news triggered rally? Labor Day is over and the stock market is starting to shake off the summer doldrums. In an emerging sector, a rally can happen at any time. Are you ready?
Here are some considerations for you to think about when apprising the terrain of the marijuana investment sector:
1.1. The OTC penny stock market is made of about 7,000 issuers and less than 100 of those (1.5%) are marijuana sector companies.
2. The daily trading volume of all OTC penny stocks combined is about $100 M and marijuana penny stocks contribute about $6 M (6%) to the daily total and only a handful of the less than 100 marijuana issuers actually trade any regular volume.
3. The weighted average PPS of all OTC penny stocks is about $0.02.
Here’s how we think about the above considerations at the Wall Street Corner Report:
1.1. With the marijuana sector being flat over the last year, the $6 m in daily trading volume coming from the sector is primarily from accumulation, and those handful of stocks that have been contributing to the trading volume are the ones likely to deliver returns in an industrywide news triggered rally.
2. The best bets when it comes to realizing dramatic PPS increases will be those companies trading below the OTC penny stock market weighted average PPS of $0.02. The companies with a PPS above the average are just going to be statistically limited in their ability to rise.
Special Sub-Penny Stock Investment Considerations
In addition to the lay of the land considerations, marijuana sector investment considerations must also include sub-penny specific decision criteria. We believe the OTC penny investment market has a large sub-penny investment following with investment criteria altogether different from the overall penny market at large. We even feel the sub-penny investment following is a sub-culture onto itself – one where plenty of money can be made. So here at Wall Street Corner Report, we believe the considerations for marijuana stocks priced below a penny are different from marijuana stocks priced above a penny.
Applying The Analysis Criteria To Pick Your Marijuana Sector Investment
Simply stated, an easy analysis approach for identifying high-potential marijuana sector investment opportunities is to look for:
1. The lowest priced sub-penny stocks with the best trading volume history and,
2. The lowest priced stocks with a price above a penny with the best trading volume.
From there, start to look at further at the Company itself. Does it have a business plan that is straight forward and logical? Can you understand it and repeat it yourself to someone else? Is the management team credible? Most of these companies are early stage and revenues, let alone profits, will be rare. But if the Company has either – Bonus! Move it to the top of the list of prospects.
Our Favorites – USMJ and PURA
We have our favorites in the sector already. One is a top trader at a low price in the sub-penny sector (USMJ) and one is a top trader at a low price in the above a penny sector (PURA). USMJ has revenue ($500k annually) and PURA’s got its first $1 million contract. We like the management teams and we can get our heads around both business models. USMJ is a cannabis sector incubator with its first two Pilot Program graduates. PURA is one of those graduates and they are out to establish the industry Gold Standard for cannabis extracts. We think both are ripe for dramatic PPS increases in response to industry wide news. And now that summer is over, we think the likely hood of an industry wide news trigger between now and the end of the year is high.
Both USMJ and PURA have put out their first post Labor Day news releases to essentially summarize recent progress and anticipated upcoming events. Their intent seems to be to simply get those that took the summer off up to speed. Based on the two Companies past investor relations practices, we anticipate new progress updates to begin next week.
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