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Looking for Alan's Posts?

For those looking for our current thoughts on the market, Alan is publishing almost exclusively to Seeking Alpha. You can access Alan's articles here.

 

Alan also publishes a blog to support his market-beating models at Invest By Model - Read the blog

 

If you are a swing trader looking for actionable ideas, you should learn more about Alan's service on Marketfy, The Analytical Trader

 

Alan's most recent venture is 420 Investor, the premier source of information for investors looking to capitalize on the "Green Rush" of cannabis legalization.

 

Finally, Alan has published short company profiles at Liston Street Pulse.

 

Capitalizing on Cannabis: A Dark Cloud Lingers

Summary

• The SEC has suspended 10 cannabis-related companies since March.
• Following a suspension, companies are automatically relegated to the Grey Market.
• The process to escape the Grey Market is difficult and fundamentally flawed.
• The fear of an SEC suspension continues to haunt investors in the sector.

Since early March, there have been 10 suspensions by the SEC of companies in the cannabis sector. I do see clearly the need for government intervention to protect investors, but the current process is flawed, potentially resulting in a lack of due process for publicly-traded companies and their shareholders. In my view, this has created an overhang in the market, as investors endure "opening bell fear," waiting to see if there has been a suspension announced on the SEC website.

 

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SEC Suspends $FRTD Yet Market Rallies

 

 Summary

• FINRA and the SEC have been actively policing the cannabis stocks.
• Fortitude Group was the 8th suspension since early March.
• The company issued a bold press release earlier in the week that likely triggered the suspension.
• Unlike recent suspensions, the market shook off the Fortitude Group's.

On Friday, May 23rd, the SEC suspended the 8th company in the cannabis sector since early March. The company, Fortitude Group (OTCPK:FRTD), was the third "Pink Sheet" in the group to suffer this type of action this month, with CannaBusiness Group (OTC:CBGI) suspended on May 7th and FusionPharm (OTC:FSPM) suspended on May 16th. The SEC lists all of the suspensions going back to 1995 here. In the case of FRTD, the order suggested:

there is a lack of current and accurate information concerning the securities of Fortitude Group, Inc. because of questions regarding the accuracy of publicly available information about the company's operations.

The SEC actions have taken a tremendous toll on the sector, with the Benzinga 420 Marijuana Index declining from a peak closing value of 1010 on 3/18 to a recent low of 367 on 5/21, a decline of 64%:

 

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Medical Marijuana, Inc. Prepares To Spit Out Canchew Biotechnologies

Summary

• MJNA has quietly prepared to spin out a subsidiary, Canchew Biotechnologies.
• Canchew Biotechnologies has failed to gain traction with its lead product.
• The transaction is unlikely to create value for MJNA shareholders.

Medical Marijuana, Inc. (OTCPK:MJNA) hasn't said a word about it, but a careful read of the SEC filings of Axim International (OTCQB:AXIM) indicates that MJNA will soon spin out its stake in a joint venture. MJNA's operating results have been lackluster, and the company likely feels pressured to generate additional non-operating revenues in order to avoid the appearance of declining fundamentals. MJNA reported 2013 net income of $24.6mm, but over 99% of these "profits", the vast majority of which is illiquid stock that has never been sold, was from the CannaVest (OTCQB:CANV) transaction (source: annual disclosure).

 

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The Daily Dab: A Quick Hit On Cannabis Stocks 04/09/14

 

NYC Dinner with ATTBF, FITX, TAUG and TRTC - 04/17

 

Cannabis stocks were mixed, with 51% of the stocks rising in price.  The Benzinga 420 Marijuana Index closed near 645, up 3.9%, and is up 305% YTD.   There were 10 double-digit percentage gainers and  6 double-digit percentage losers.  Stocks with volume above the 30-day average fell from 28% to 19%, with 5 stocks trading over $5mm in value.  6 of the 10 highest dollar-volume stocks rose in price.

Hemp, Inc. (HEMP) led the way higher as volume expanded.  The stock is down 71% since peaking in early February.  Vapor Group (SPLI) ended a string of losses as volume contracted.  Tranzbyte (ERBB) advanced after a dramatic reversal yesterday of its recent decline, though volume fell.

Viking Minerals (VKML) plunged on record volume, with the stock holding the 50dma.  Mentor Capital (MNTR) continued its deep correction, trading to levels not seen since January as volume accelerated.  Green Cures (TTDZ) saw volume pick up slightly as it retraced part of its recent advance.

Press Releases:

• EDXC
• EDXC-2
• MCIG
• MWIP
• UTRM
• VKML

Interested in Cannabis Stocks?

Learn about the risks and opportunities

Download Your Free Copy

 

The Daily Dab is brought to you by 420 Investor, a large and rapidly growing community of Green Rush investors seeking to capitalize on cannabis.  For just a little over a dollar a day on an annual subscription ($420), you can get all of the benefits of being a part of 420 Investor, including analysis, alerts, trade recommendations, chat and video updates.  Find out why 420 Investors are addicted to the service.  To learn more about the sector, download your free guide. 

Check us out on Facebook too!

 

Denver, CO

The Daily Dab: A Quick Hit On Cannabis Stocks 04/08/14

 

NYC Dinner with ATTBF, FITX, TAUG and TRTC - 04/17

 

Cannabis stocks opened lower but closed mixed, with signs of buyer interest emerging as the day progressed.  Still, 57% of the companies fell in price.   There were 8 double-digit percentage gainers and  5 double-digit percentage losers.  Stocks with volume above the 30-day average fell from 37% to 28%, with 5 stocks trading over $5mm in value.  5 of the 10 highest dollar-volume stocks rose in price.

CannaBusiness Group (CBGI) gapped up, ending a slide of 80% in the past few weeks after bouncing off the 50dma on Monday, with the stock slipping in volume.  Potnetwork420.com (UTRM) reversed the prior day's losses, with volume picking up.  mCig (MCIG) volume was well above-average but below yesterday's, as the stock jumped back to the 10dma.  Terra Tech (TRTC) also rallied sharply but on slightly lower volume after testing the 50dma.

Dewmar International BMC (DEWM) plunged through the 50dma on sharply higher volume.  Plandai Biotechnology (PLPL) volume picked up as the stock moved to the lowest level since late January.  Primco Management (PMCM) dropped on slightly higher but below-average volume.  Vapor Group (SPLI) extended its decline from late March, with volume falling as it tested the 50dma for the second consecutive day.

Press Releases:

• ATTBF
• CANN
• CBGI
• HEMP
• MCIG
• MDBX
• MJNA
• NVLX
• RFMK
• SING
• STEV

Interested in Cannabis Stocks?

Learn about the risks and opportunities

Download Your Free Copy

 

The Daily Dab is brought to you by 420 Investor, a large and rapidly growing community of Green Rush investors seeking to capitalize on cannabis.  For just a little over a dollar a day on an annual subscription ($420), you can get all of the benefits of being a part of 420 Investor, including analysis, alerts, trade recommendations, chat and video updates.  Find out why 420 Investors are addicted to the service.  To learn more about the sector, download your free guide. 

Check us out on Facebook too!

 

Denver, CO

The Daily Dab: A Quick Hit On Cannabis Stocks 04/07/14

Denver, CO

 

Cannabis stocks were weak yet again as volume accelerated, with  95% of the companies falling in price.   Signs of capitulation were evident, with just a single double-digit percentage gainer and  25 double-digit percentage losers.  Stocks with volume above the 30-day average soared from 11% to 37%, with 6 stocks trading over $5mm in value.  Only 1 of the 10 highest dollar-volume stocks rose in price.

Unless one was willing or able to go to Canada for Tweed, which rose 40% on its second day of trading, winners were scarce.  Green Cures (TTDZ) closed at a high for the fourth consecutive day as volume rose.  FusionPharm (FSPM) had a late day surge to close in the green, with volume picking up.

Vapor Group (SPLI) led the way down, with volume rising sharply as the stock tested the 50dma. Minerco Resources (MINE) was very weak as well, with volume picking up.  Mentor Capital (MNTR) has lost 73% of its value since peaking in March, with volume accelerating.  Cannabis Science (CBIS) fell to the lowest level since January, with volume picking up slightly.

 

Press Releases:

• HEMP
• MJNA
• PHOT
• USEI

Interested in Cannabis Stocks?

Learn about the risks and opportunities

Download Your Free Copy

 

The Daily Dab is brought to you by 420 Investor, a large and rapidly growing community of Green Rush investors seeking to capitalize on cannabis.  For just a little over a dollar a day on an annual subscription ($420), you can get all of the benefits of being a part of 420 Investor, including analysis, alerts, trade recommendations, chat and video updates.  Find out why 420 Investors are addicted to the service.  To learn more about the sector, download your free guide. 

Check us out on Facebook too!

The Daily Dab: A Quick Hit On Cannabis Stocks 04/03/14

Denver, CO

 

PHOT:  Key Addition To GrowLife Management Team Solidifies Story

 

Cannabis stocks were weak yet again as volume remained subdued, with  75% of the companies falling in price.   There were 2 double-digit percentage gainers and  7 double-digit percentage losers.  Volume was anemic, as stocks with volume above the 30-day average was 13%, with only 4 stocks trading over $5mm in value.  Only 2 of the 10 highest dollar-volume stocks rose in price.

Meet the CEOs of ATTBF, FITX and TRTC for Dinner in NYC 04.17

 

Triton Distribution Systems (TTDZ), soon to become Green Cures, moved to a new high again, with volume increasing. Nuvilex (NVLX) continued its recent recovery, with volume increasing dramatically, the second highest dollar-volume of the day. U.S Energy Initiatives (USEI) reversed some of the prior day's losses, though volume fell.  

CannaVest (CANV) moved into the red for 2014 following an 8-K that pointed to accounting restatements, with volume setting a record. Primco Management (PMCM) found support near the 10dma, with volume falling from the prior day.  Vapor Group (SPLI) gapped up on news of an acquisition and then reversed, closing near the lowest level in over two weeks as volume contracted.

 

Press Releases:

• CANV
• DEWM-1
• DEWM-2
• EAPH
• ERBB
• MDBX
• SPLI

Interested in Cannabis Stocks?

Learn about the risks and opportunities

Download Your Free Copy

 

The Daily Dab is brought to you by 420 Investor, a large and rapidly growing community of Green Rush investors seeking to capitalize on cannabis.  For just a little over a dollar a day on an annual subscription ($420), you can get all of the benefits of being a part of 420 Investor, including analysis, alerts, trade recommendations, chat and video updates.  Find out why 420 Investors are addicted to the service.  To learn more about the sector, download your free guide. 

Check us out on Facebook too!

Capitalizing On Cannabis: Key Addition To GrowLife Management Team Solidifies Story

Summary

• GrowLife is an early leader benefiting from the build-out of legal cannabis cultivation facilities.
• Following the joint venture with CANX USA LLC, 3 talented independent directors have joined the Board of Directors.
• The addition of President Marco Hegyi in late 2013 brings additional skill sets and an intense focus on business processes and new business models.
• GrowLife, with its strong management team, access to capital and solid business model, is capturing investor attention as the market transitions from the black market to legal cannabis.

GrowLife (OTCQB:PHOT) emerged in 2013 as one of the early leaders among the cannabis-related stocks, posting an industry-leading 310% return. Its recent performance has been nothing short of spectacular:

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The Daily Dab: A Quick Hit On Cannabis Stocks 04/02/14

Denver, CO

June 29-July 01

 

Cannabis stocks slipped again on very low volume, as 71% of the companies fell in price.   There were 8 double-digit percentage gainers and  5 double-digit percentage losers.  Volume was anemic, as stocks with volume above the 30-day average fell to 11% from 23%, with just 3 stocks trading over $5mm in value.  6 of the 10 highest dollar-volume stocks rose in price.

Zoned Properties (ZDPY) extended its bounce from its big decline from Friday and Monday, though volume dropped.  DirectView Holdings (DIRV) improved for the second consecutive day, with volume jumping.  Triton Distribution Systems (TTDZ), soon to become Green Cures, moved to a new high, with volume increasing. Vapor Group (SPLI) tested support early in the day and bounced sharply, with volume dropping.

U.S. Energy Initiatives (USEI) dropped from the open and never recovered, with volume tapering off.  Viking  Minerals (VKML) closed near the bottom of the 4-day trading range, with volume jumping.  PotNetwork420.com (UTRM) also fell on higher volume.  Minerco Resources (MINE) broke the 10dma on relatively flat volume.

 

Press Releases:

• DIRV
• MWIP
• SPLI
• TTDZ
• ZDPY

Interested in Cannabis Stocks?

Learn about the risks and opportunities

Download Your Free Copy

 

The Daily Dab is brought to you by 420 Investor, a large and rapidly growing community of Green Rush investors seeking to capitalize on cannabis.  For just a little over a dollar a day on an annual subscription ($420), you can get all of the benefits of being a part of 420 Investor, including analysis, alerts, trade recommendations, chat and video updates.  Find out why 420 Investors are addicted to the service.  To learn more about the sector, download your free guide. 

Check us out on Facebook too!

The Daily Dab: A Quick Hit On Cannabis Stocks 04/01/14

Denver, CO

 

Cannabis stocks began the quarter with mixed performance as 46% of the companies rose in price.   There were 6 double-digit percentage gainers and  5 double-digit percentage losers.  Volume was anemic, as stocks with volume above the 30-day average fell to 23% from 25%, with just 3 stocks trading over $5mm in value.  Half of the 10 highest dollar-volume stocks fell in price.

Zoned Properties (ZDPY) bounced back from its big decline over the past two days, though volume dropped and the stock remained below the 50dma.  Primco Management (PMCM) saw volume jump as it closed at its highest level YTD.  Directview Holdings (DIRV) also saw volume jump as it closed above the 10dma.  FusionPharm (FSPM) halted a slide that had left the stock down almost 50% from its early March levels, with volume picking up.

CannabisSativa (CBDS) had its lowest close since early January, with volume picking up.  PotNetwork420.com (UTRM) gave up yesterday's gains, with volume declining.  Tranzbyte (ERBB) closed below the 10dma as volume accelerated.  Vapor Group (SPLI) posted its lowest close in two weeks as volume picked up.

 

Press Releases:

• DEWM
• FITX/PHOT
• MCIG
• MDBX
• PMCM

Interested in Cannabis Stocks?

Learn about the risks and opportunities

Download Your Free Copy

 

The Daily Dab is brought to you by 420 Investor, a large and rapidly growing community of Green Rush investors seeking to capitalize on cannabis.  For just a little over a dollar a day on an annual subscription ($420), you can get all of the benefits of being a part of 420 Investor, including analysis, alerts, trade recommendations, chat and video updates.  Find out why 420 Investors are addicted to the service.  To learn more about the sector, download your free guide. 

Check us out on Facebook too!