Monday Press Worthy or Pumpy?

Pumpy

The holiday trading is now behind us and the initial sentiment for 2015 is starting off pretty weak. Does this feel similar to last year at this time? Last year’s polar vortex was causing a lot of concerns around the strength of the economy. This time, declining oil is at center stage along with the potential Greek exit from the Euro. The S&P 500 dropped by 1.81% to 2,021.

Cannabis stocks trading nicely higher, despite broad equity weakness. We are not advocating for a majority of the companies rallying in the space yet; we don’t expect markets to improve overnight. Buyer’s beware! MJIC Marijuana Index traded flat and Benzinga 420 Marijuana Index continued higher by 4%.

Daily Positive: Though we haven’t seen a solid reason for some of the lower quality names to increase, the last couple of trading days may have afforded some investors an opportunity to exit from these problematic names.

Daily Negative: Putting out a press release about a stock price is not constructive by any means because this information is widely and publicly available to the minute. So pushing it to people via email, or via press release, is giving it undue weight and could confuse investors. This kind of activity is condemned by regulators and those who follow the guidelines avoid trying to create the illusion of greatness where there is none.

Today, Mentor Capital (OTCPink: MNTR), a PINK sheet company, did just that. In this market, things go up and down. If each company did a press release for every upward movement, we would be drowning in information. Reader, we would love your feedback: is such action press worthy or pumpy?

The ongoing weakness in energy and the strength in the USD is not a “risk on” environment for Canadian investors and the corresponding LPs. This action could be much more prolonged, so we will be watching the impact on the market going forward.

 

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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