Thursday Pump Alert


U.S. equities showed a weak open on the back of news from the ECB. However, the selling pressure didn’t last long and equities ended mostly unchanged. The S&P 500 posted a small decline of 0.11% to 2,072. The broad markets have had another positive year and it appears that investors are content with their gains at this point. Will we see a year-end Santa Claus rally, in addition to the recent positive move from October lows?

Cannabis indices underwhelmed today with poor price and volume. MJIC Marijuana Index and Benzinga 420 Marijuana Index declined by 4.29% and 1.15%, respectively.

Daily Positive: We’ll take a pass on this one today.

Daily Negative: Cannabis stocks are far below levels seen earlier this year. However, valuations are still challenged for most companies in the space. We understand that many investors in OTC stocks do not appreciate fundamental analysis. However, it’ll be hard to attract new investors to the space after what many have experienced this year.

Pump and Dump Alert: We have mentioned Nhale (OTCBB: NHLE) several times, as the company continues to issue press releases with essentially no value. Well, Nhale is back at it today, telling investors how the company is having discussions to raise capital. This is not press worthy. Investors would be better served with a press release regarding execution of a capital raise.


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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