CANNABIS CORNUCOPIA - review of Good Looking US Marijuana Stocks...

originally published Tuesday, November 21, 2017

Printable Version

All Marijuana stocks

Don’t worry – I had to look it up too. The next major bullmarket phase for the cannabis / marijuana sector has begun – it started in Canada, and is now spreading to US stocks as the market starts to realize that Federal impediments to the industry are likely to be swept aside for pragmatic reasons – if they aren’t the Canadian companies will simply make off with the whole pie – and this is set to become a big industry. A valuable clue to the more liberal attitude in Canada towards marijuana was the recent revelation that dashing young Canadian Prime Minister Justin Trudeau has a tattoo. The main concern that “stoned” drivers will cause a lot of traffic accidents and road deaths will be dealt with the same way that drunk drivers have been dealt with, by vigilance and heavy sentencing, and a stock that we have followed, Cannabix Technologies, has developed a gadget to help law enforcement officers catch offenders.

It is still early enough in this cycle to catch a range of US cannabis plays before they make their big moves, and we have gone for some of them in recent weeks – one that we went for last week, Cannabis Sativa, made a powerful breakout yesterday. Following is a range of promising stocks, some that we already know of and have bought, and some new ones. Note that clicking on the stock name takes you back to the latest article on it, if there is one.

Cannabis Sativa CBDS on OTC, $3.35

Nice breakout yesterday by Cannabis Sativa on the strongest upside volume since last January, which we correctly anticipated. Still a buy here with the benefit of knowing that it has broken out, as a major bullmarket advance looks like it has just started.

Liberty Health Sciences LHS.CSX, LHSIF on OTC, C$1.70, $1.315

This one is mainly a Canadian but trades in good volumes on the US OTC market, it is already up over 53% since we first went for it last month. Tempting to take profits here, but the strong volume pattern and volume indicators suggest that it is headed higher, against the background of continuing sector strength.

Medical Marijuana MJNA $0.088

The recent surge in this stock indicates that investors are unconcerned by the astronomic number of shares in issue in this stock, 3.15 billion, perhaps because there are a lot of them (investors). This surge was on a marked pickup in volume that drove volume indicators sharply higher, and thus suggests that it was an impulse wave, i.e. the first upwave of a new bullmarket. The surge was followed by a sharp reaction back from the still falling 200-day moving average, which is normal and throws up a buying opportunity, as it has arrived back at support just above its now rising 50-day moving average. Looks like a speculative buy here for a 2nd upwave that should swing moving averages into much more favorable alignment, so that the majority of the gains on the next upleg are retained.

The longer-term 14-month chart for Medical Marijuana is interesting as it shows us show high it got on its last major advance and the colossal daily volumes that built up at that time – up to 175 million traded. Buyers should keep in mind that any major spikes in this stock should be sold into, because the huge number of shares in issue means that such rapid gains never stick.

Naturally Splendid Enterprises NSP.V, NSPDF on OTC, C$0.195, $0.15

We looked at modestly named Naturally Splendid last week, after it broke higher on big volume and slammed into its falling 200-day moving average, resulting in its reacting back which is no surprise. This reaction is viewed as presenting a buying opportunity as volume on that advance was very heavy and drove volume indicators sharply higher, meaning that it was very likely the 1st impulse wave of a major new bullmarket in this stock. Downside volume has been heavy on the reaction of recent days, but once this eases the stock will be ready to advance. Not expected to react back much further, if at all, and rated a buy again here.

Vape Holdings VAPE on OTC, $0.0026

Vape has been basing in recent months after a long and severe bearmarket from its peak last November, as we can see on its 14-month chart below. Most noteworthy is the improvement in the volume pattern and the steep and steady rise in the Accum-Distrib line in recent months, which is a very bullish indication. Despite the large number of shares in issue at 658 million, which is largely factored into the price anyway, it has big upside potential in the right conditions – and the right conditions appear to be on their way. The steady convergence of the price and its moving averages are also increasing the possibility of a big rally developing soon.

The latest 6-month chart for Vape shows the price approaching the top of another trading range which the strongly rising Accum-Distrib line suggests is not a consolidation pattern but a base. If so it should break out to the upside, and it may not back off again (or not by much) before it does so.

End of update.

Posted at 7.25 am EST 0n 21st November 17.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.