Spectacular Bubble in Pot Stocks
January 10th, 2014Warning: This is not a recommendation to buy, sell or hold any financial instrument.
Believe it or not, I ran one of my bottom feeding screens, fat fingered the minimum price and one of the companies that came up on the erroneous scan was HEMP. I laughed, thought, “Well I’ll be damned,” and moved on.
*chortle*
By the way, you might consider watching The Wolf of Wall Street before reading the piece below.
*double chortle*
No really, the only technique that has ever worked for me with any consistency is spotting the crooked volume generated by insiders on dogcrap stocks—before news. In, Insider Crimes, Funny Money and Options Rackets I described how it works.
The stuff that’s depicted in the Wolf of Wall Street happens everyday. It’s standard operating procedure. I don’t deal in the pink sheets, though, because absolutely pants shitting illiquidity happens on those. I stick with the junk that still hasn’t been delisted from NASDAQ, and there’s plenty of it.
Via: Bloomberg:
Bruce Perlowin, the chief executive officer of Hemp Inc. who has seen his stock soar 205% to 8 cents in the last three days, says investors are suddenly bidding up marijuana companies because they want to find “the next Microsoft.” Robert Frichtel, his Advanced Cannabis Solutions Inc. up 144% after posting $455 in sales last quarter, said “euphoria” is driving gains that in some cases top 1,700%.
“The demand for marijuana is insatiable,” said Mr. Perlowin, a once-jailed smuggler who filed last month to sell 12 million shares of the Las Vegas-based company even as its market value holds 99.97% below the world’s biggest software maker. “You have a feeding frenzy for the birth of a new industry.”
While regulators warn of scams, some of the biggest percentage gains in the stock market this year are being enjoyed by investors speculating on marijuana penny stocks. GreenGro Technologies Inc., which provides management services for medical dispensaries, has soared 1,714% to 80 cents. Tranzbyte Corp., which sells pot in Colorado, has gained more than 310% in five trading sessions, crossing above a penny for the first time in 11 months.
