Friday Boxing Day

Boxing Day

While quiet, the market seems to be holding its own today. The S&P 500 posted a gain of 0.34% to 2,089. Small and microcaps outperformed their larger cap brethren with both indices continuing their December rally.

Cannabis markets traded today, though barely noticeable, given the complete lack of volume and press. MJIC Marijuana Index and Benzinga 420 Marijuana Index were both mostly unchanged for the day.

Daily Positive: Happy Friday Boxing Day! It is often tradition to go out and shop, which is always great for the economy and you can usually find good deals, but keep your pocketbook in mind.

Daily Negative: Extremely limited market activity today, also the Canada and the UK markets are closed.

Can you believe there are only three trading days left for 2014? We hope investors have enjoyed the holidays. This is a special time of year for us all to relax, spend time with families and reflect. Investors start making game plans and setting objectives for 2015. Even though the markets don’t care about the calendar year, investors do.

For 2015, we hope to see the cannabis space improve considerably, as we expect more turnover. We hope to see dozens of companies, those not contributing positively, to leave the space. We will also watch companies join the space. January is shaping up to be quite busy. It appears that a maker of home grower kits, Cabinet Grow may be the first out of the gate. The company recently filed its prospectus with the SEC and we believe they plan to be trading by the end of the first full week of January.

The next two to follow will be Indoor Harvest and MassRoots. We will be sharing some details on these companies in days to come.

 

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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