Friday: Quality Information is Gold

gold scale

U.S. payrolls witnessed the largest gain in three years, while oil continues to slide. Equity markets reflected that mixed news in the early part of the day, but then raised on the optimism around the relative strength of the U.S. economy. The S&P 500 posted another record close with a small gain of 0.15% to 2,075.

Cannabis indices continue to drift lower with MJIC Marijuana Index and Benzinga 420 Marijuana Index declining by 3.75% and 4.77%, respectively.

Daily Positive: Going to pass again for the second day in a row.

Daily Negative: Another negative day for the overall space as losses continue to pile up.

Once a company goes public, it basically has two companies to run. The first is the company that is somewhat behind-the-scenes generating revenues, growing and building on the core business plan. The second is the company in the public eye. It is very challenging to take a company public, but it also is rewarding when well done, as the company has the ability to benefit from such aspects as lower cost of capital, and the ability to expand at greater rates. However, when companies fail to effectively communicate to the market, the stock can suffer.

People have short attention spans in today’s world and need to be reminded about what companies are doing and why they might want to invest. Do not be mistaken, as we have stated, we do not support fluffy or pumping press releases. However, we also know that valuable information is critical, especially in the OTC marketplace. If a public company is taking steps that are material to the company and the future, then it should be sure to get that information out.

We spend all of our time looking at these companies and communicating with many of them and we hate to see solid businesses sliding down in the public market, simply for lack of substantive updates. Remember, quality information is gold.

 

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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