Soft Tuesday

soft

U.S. equities opened strong again and traded softer on waning volume, a similar pattern for the third consecutive day. International markets have been a bit stronger recently which has contributed to the early strength in U.S. stocks. The S&P 500 closed down slightly by 0.12% to 2,067.

Cannabis indices were soft today with MJIC Marijuana Index and Benzinga 420 Marijuana Index down by 1.28% and 0.89%, respectively.

Daily Positive: AMMJ announced the appointment of Tripp Keber, CEO of Dixie Elixirs, to its Board of Directors, although investors failed to respond.

mCig continues to progress with its VitaCig dividend/spinoff. Today, mCig posted a press release stating today as the ex-dividend date meaning shareholders as of today would be entitled to the VitaCig dividend. Investors took the news positively as mCig closed higher by 16.8%.

Daily Negative: Another pointless press release out of NTRR talking about a bank in Colorado. We don’t need a company press release to “applaud” or “cheer” industry progress. Instead, investors would be better served to read about actual business development.

There has been a lot of press focusing on the fact that cannabis is becoming a big business.  However, it still seems that the public markets are lagging on this front. As the industry matures, it will be increasingly difficult for those who are just trying to make a quick buck on low quality companies. There are some great names trading at much improved valuations versus earlier this year. It merits looking into those companies for those seeking long term exposure to this growing industry.

 

The discussion above is provided for informational purposes only and does not constitute an offer of, or solicitation for, any investment services or products offered by the author. The author is not making any investment recommendations and the opinions above do not constitute investment advice. Reference to above indices [and companies] is based on information provided by sources the author believes to be credible. Investing in the cannabis industry, as with other industries, presents certain risks including the risk of loss on an investment.

Morgan is a Founding Partner and Managing Director of Poseidon Asset Management. He is the Chief Investor of their Cannabis Focused Fund. Morgan previously worked for a privately owned Registered Investment Adviser and earlier was at UBS Financial Services focusing on wealth management. Morgan believes in the potential of the cannabis industry and likes having an active involvement as it develops. You can follow him on Twitter @PoseidonAsset.

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