American Cannabis Company Inc (OTCMKTS:AMMJ) stock that’s been powering on a major tear along with the rest of the cannabis patch into the big voting day on November 8, when more than thirty percent of the US population will be represented on the legality of pot in America. The result of that vote is projected to possibly triple the size of the legal sales footprint of marijuana overnight. We’ve been covering this group incessantly for the past two months, all along wondering why the rest of the financial media hasn’t given these stocks more play.
That curious absence is over at this point as the story is suddenly all over the place, hitting Business Insider and now Forbes in recent days. This is probably why the whole group just hit a new gear. These types of market phenomena always seem to progress through several stages. The early money figured this out over the summer or even ahead of that and got positioned. Then the active players and niche publications started to push the story and we saw the initial momentum get traction. Finally, at the end, after several hundred percent moves and a week to go before the vote, the more mainstream side of the marketplace, with the average Joe retail investor, is starting to catch on.
American Cannabis Company Inc (OTCMKTS:AMMJ) promulgates itself as a company that provides solutions for businesses operating in the cannabis industry in the United States and Canada.
It provides advisory and consulting services, including commercial cannabis business planning services, cannabis business license applications, cultivation build-out consulting, cannabis regulatory compliance, compliance audit services, cannabis business growth strategies, and cannabis business monitoring services.
The company also sells products and equipment used in the cultivation, processing, transportation, or retail sale of cannabis. Its product offerings include The Satchel, a pouch-like case designed as a child-proof exit package solution for the regulated cannabis industry; SoHum Living Soil, a just-add-water soil; High Density Racking System, which ensures the proper use of space; The Cultivation Cube, a self-contained and scalable cultivation system; and other products for cultivation operations, medicinal and recreational cannabis dispensary operations, and infused-products.
The company is headquartered in Denver, Colorado.
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As we covered recently, one aspect to the AMMJ story that’s particularly interesting is the new design and consulting contract with a Canadian firm for the purpose of creating a cannabis Licensed Producer facility within the Atlantic provinces.
The Canadian cannabis story may even be hotter right now than the US one, and in fact may provide a model for what we will eventually see here in the states. In Canada, legislation is likely to be on the table sometime next year to fully legalize pot on a national basis for all conceivable consumers, according to a promise made by the country’s PM Trudeau.
In any case, the action here has been white hot. In all, we’ve witnessed more than 400% piled on for shareholders of the listing during the trailing month. But market participants may want to continue to pay close attention to this stock: the name has registered increased average transaction volume recently, with the past month seeing greater than 320% beyond its prior sustained average level. It pays to take note of this fact with a float in play that’s tight — about 15M shares.
This type of thing is something to watch out for: a mechanically driven price squeeze can result from a combustible combination of a small float and ramping attention from traders and in the media. Certainly, that has played into the acceleration we’ve seen of late. But that could intensify if this same story is picked up by the WSJ or FT ahead of the vote.
Now commanding a market cap of $92.6M, AMMJ has a decent store ($228.65k) of cash on the books, with total assets a bit over $520K, which is balanced by an appreciable load ($139.06k) of total accumulated debt. While it still looks like a strong story, traders may also want to realize that many folks likely moved into this space for a trade into the vote, and many positions may be reduced in the final few days for those showing heavy gains. Be on alert. We will update this exciting story again soon. For continuing coverage on shares of $AMMJ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!