Is The Marijuana Stock Run Over? Or, Has it Just Begun?
Tilray blasts off into the stratosphere. Why? Marijuana Euphoria. New Age Beverage (NBEV), a small Colorado-based company, was no exception. Shares were up more than 600% since last Wednesday — when it announced it would debut a portfolio of CBD-infused beverages at a trade show next month. David’s TEA (DTEA) was always swept up in the Cannabis Speculation frenzy, producing incredible volatility swings north and south. Now that everyone has recovered from the first wave of Marijuana stocks running wild for almost no apparent reason besides the fact that its “Marijuana Season”, lets regain our composure here and prepare for the next wave. After a hibernation period early in the summer, the vast majority of marijuana stocks began to show life in the later stages of August. Excitement over Canada’s upcoming recreational cannabis legalization on Oct. 17, along with a flurry of recent marijuana start-ups, traders have pushed a number of brand-name pot stocks to incredible new heights.
Many traders have speculated that the Marijuana Stock run might be over due to the sudden drop in CBD stocks such as Tilray, New Age Beverages, and Davids Tea, along with the Hemp bill being pushed back. However, some of the top analysts are saying, the real Marijuana Stock Run has yet to even start. Let’s have a look at why we have yet to see the true Marijuana Stock Run.
What Marijuana Stocks should you be watching this Month?
— Let’s look at some examples of Marijuana companies that have yet to “Run” but have all the ingredients to be apart of the Marijuana Stock Run of 2018.
The first signal that the Marijuana Stock Run is just starting can be seen by the abnormally high volume and momentum in ultra high-risk Marijuana penny stocks. Interestingly, this has been a historic indicator of sector momentum, seen over the years. This year one penny stock is showing incredibly high volume and sector momentum, that of M Line Holdings, Inc. (OTC:MLHC). MLHC owns the Controlling Interest in The Caravel Group, LLC. Best Choice Food and Beverage, LLC., and Best Choice Nuts, Candy and Specialties. Below is a previous PR indicating the products from The Caravel Group, LLC and the $2+ Million contract for Mexico: PR Here. Best Choice Nuts, Candy and Specialties is currently generating approximately $300,000 in revenues. MLHC, because of having the Controlling Interest in them both, is going to combine Best Choice Nuts, Candy and Specialties with Best Choice Food and Beverage, LLC and is expected to have an increase of $700,000 monthly of which per month equates to $8.4 Million is Revenues per year. What’s most interesting about this, is the amount of volume going into this stock considering how cheap ($0.0007) and thus risky this penny stock is. What this signifies is a deep sector momentum in Cannabis/CBD/Marijuana based companies. If you do a scan on social media, you will see endless MLHC chatter, further signifying a strong momentum push.
On the other end, with the cultivation and production of Hemp and Marijuana, companies like Bahamas Development Corp., (OTC:BDCI) is flying under the radar currently, with normal trading volume due to the pending nature of the companies interests. Currently, BDCI is completing a large merger valued at over 20 million dollars, in addition to hundreds of acres of hemp being prepared for a October (2018) harvest. This will create a sudden and sustaining price increase within the marijuana season, and outside of the marijuana season. BDCI does not have nearly the following as the above MLHC, but what BDCI has is a strong foundation. Therefore, if we start to see the merger take form, and numbers roll in from the harvest, the addition of MLHC-type momentum can surge stocks like these to break historic company highs. Currently trading at $0.028, we can see within 2018 this company breaking into the $0.1 range, or higher.
Do you have your own Marijuana Stock that you think will run in 2018? Write to me at IslandAutoParts@gmail.com, and I would be happy to analyze it. Stocks mentioned here are opinions only, and should not be translated into decisions to buy or sell such a security.