U.S. equities were mostly mixed today after the recent rally. The U.S. dollar resumed to the upside, oil to the downside. Global markets are mired in uncertainty as the day-to-day price action exhibits volatility yet lacks direction. The S&P 500 ended lower by 0.44% to 2,041.
Cannabis stocks were mixed today as we end the hump day of the week. Volumes continue to be lackluster and overall press has died down on the back of ArcView’s first conference of 2015. It is interesting to see how little the public markets responded to progress in Illinois. We thought that was quite positive, given the political heel-dragging that went down, yet the space mostly yawned.
It was interesting to hear that President Barack Obama’s budget proposal effectively allows Washington, D.C., to move forward with a more formal cannabis marketplace, yet yawning resumed in the markets.
Daily Positive: Positive substantive press continues to trickle out regarding interest in the industry.
Daily Negative: We continue to be disgusted by companies that live in the lowest tier of public companies, the OTC PINK. The Vapor Group (VPOR) decided to raise its authorized shares by 1 billion. And yes, that was billion with a b. Remember, “Friends don’t let friends buy PINK sheet stocks.”
Daily Dump: CGRW has been getting a lot of press lately, as the stock has been a stellar performer in this industry. However, most of the upward movement appears to be driven by the manipulators and is not justified by the perceived business progress. Today, the stock is under pretty heavy selling pressure. Have the manipulators moved on to another stock?
Despite news that the federal government is trying to get involved in state level affairs around cannabis, the investment tide continues to change to show support for the industry. Y Combinator, one of the premier accelerators/incubators in Silicon Valley, responsible for such modern day household names as AirBnB and DropBox, is getting in the cannabis game. The group has accepted Meadow, its first cannabis company, into this year’s program.
Meadow is a delivery app that connects medical patients to medical cannabis dispensaries. Additionally, the company is pivoting to include a doctor service via the platform, where patients can seek out consultations with easy access. This kind of adaptability is what we like to see in such a nascent industry. Looking for opportune spaces and figuring out where a brand can appropriately serve those gaps should be of interest to investors. With so much excitement and innovation around the cannabis industry, hopefully it will be difficult to put the genie back in bottle.