Yes we did read  Benzinga.com yesterday where we learnt from a Viridian analyst…

The week ended January 27 was “the top performing week thus far, and the seventh straight week of gains,” Phillips commented. As of January 27, the Cannabis Stock Index had gained 21.9 percent year-to-date, following a spike of 7.3 percent in the fourth week of 2017.

“Once again, the index saw quite varied returns, with seven of the 12 index sectors showing positive gains. We saw sector in both the ‘Touching the Plant’ and ‘Ancillary Products & Services’ segments realizing both positive and negative returns,” the analyst added.

Source: https://www.benzinga.com/trading-ideas/long-ideas/17/02/8988279/investing-in-marijuana-stocks-2017-last-week-was-the-best-so-

All is supposedly well in the markets, but as we know they can turn on a dime and especially in such a speculative sector.

If we take a closer look at some of this week’s news items, we wonder if it’s time to be a little more conservative.

 

A)  Canadian Medical Cannabis Stocks Correction

Amid Canadian cannabis stock meltdown, analysts warn against ‘panic selling’

B)  Mass Roots – Investment

We’ve been looking at Mass Roots over the last year.

Essentially, it should be the model for ancillary service, tech  etc  for the cannabis industry.

But reflecting many others in the sector. Both, management and boards have been dysfunctional, acquisitions unrealistic and in the case of Mass Roots it even came down to the rent on their offices not being paid before Christmas and having to make a physical move.

Today we received Green Market Report’s latest alert with the following news.

We wouldn’t lend him a quarter.

Either investors are trying to get their money back or the market is myopic.

MassRoots Raises $4.75 Million

After burning through nearly $20 million, MassRoots (MSRT) has managed to raise another $4.75 million according to CEO Isaac Dietrich in a conference call held on Thursday for investors. and fully repay capital debt. Dietrich also said that he...

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Mostly he discussed the blockchain technology that MassRoots is now focused on. He wants to use this technology for seed-to-sale processing and identity management The company hopes to introduce a business portal blockchain product in the few weeks that will track analytics. The company has not announced plans for a cryptocurrency.

More at https://www.greenmarketreport.com/massroots-raises-4-75-million/

 

Meanwhile in Oregon ……..supply and demand is completely out of whack.

In some cases a lb of cannabis is now selling for only $50 wholesale and the black market is thriving, rather than on the wane.

This situation is applicable in other regulated states but only public in Oregon because as the Cannabist reported yesterday……..

Oregon’s top federal prosecutor said Friday the state has a “formidable” problem with marijuana overproduction that winds up on the black market and that he wants to work with state and local leaders and the pot industry to do something about it.

U.S. Attorney Billy Williams convened the unprecedented summit of influential federal law enforcement representatives, state officials and marijuana industry scions after Attorney General Jeff Sessions withdrew an Obama administration memo that had guided states with legalized weed on how to avoid federal scrutiny.

The meeting included representatives from 13 other U.S. attorney’s offices, the FBI, the U.S. Postal Inspection Service, the U.S. Forest Service and U.S. Customs and Border Protection. U.S. attorneys from California, Washington, Colorado, Idaho, Alaska and Montana attended in person.

Gov. Kate Brown, a Democrat, told guests that Williams has assured members of her administration that “lawful Oregon businesses remain stakeholders in this conversation and not targets of law enforcement.”

 

These factors alone won’t cause a market crash but we note around the USA  that the first “gold” rush is, without a doubt, washing itself out.

Also don’t forget the over priced  real estate and dispensary businesses in the new hot markets CA & FL; whilst on the flip side there are many in places like OR, WA & CO who have over reached and are now looking to get out of the market quickly.

We’re also led to believe through various conversations we’ve had in January that investment isn’t as strong as it was in late 2017, whatever the market analysts are saying.

Will there be a crash in the forseeable future,? We think not, but there are elements that suggest to us, a correction of sorts is closer than the horizon.