The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest (return) on his money sometimes get rich. Charles Dow
Little piles lead to bigger piles, as long as you manage pullbacks and don’t let your profits go up in smoke. DOE ——————————————————————————————————— Today I feature a stock in the “Cannabis” group, (per your email) that got your attention.
I have a saying, “Integrity is important until it gets in their pocket.” For instance, Marijuana-Cannabis was illegal and penalized by the fifty states until some found a way to generate much-needed funds by it’s legalization.
A few years ago, select states made Cannabis legal for medical purposes and now for recreational purposes. As of March 2017, twenty-eight states allow the legal use for Medicinal purposes.
At the same time, it remains illegal at the federal level because it is classified as a Schedule I drug.
I have ZERO plans to get involved with the Federal vs. State, Medicinal vs. Recreational debate but will answer your questions and analyze trading/investing opportunities within the Cannabis industry.
Back to the ranch…
One of the main concerns is not what US citizens do in their homes, but when someone gets high and decides to drive, potentially harming your family and mine, I take concern.
My featured cannabis related security features a company currently working on a “breathalizer” to detect levels of cannabis use. Currently, there are none, certified for use by law enforcement. Imagine the potential when a detection device is certified and ordered by law enforcement.
Since other countries are expanding their Cannabis Medical and Recreational use laws (Canada and Israel,) potential demand can and will be global.
Who are the potential players in the detection group?
1. Hound Labs, Inc. (private ownership) is looking for a product rollout later in 2016
2. Canabix Technologies, Inc. (BLOZF) claims an 80% accuracy with their roadside testing device
An excerpt from the latest (sales) Press Release from Canabix technologies.
Vancouver, British Columbia, March 27, 2017 — Cannabix Technologies Inc. (CSE: BLO) (OTC PINK: BLOZF) (the “Company or Cannabix”) developer of the Cannabix Marijuana Breathalyzer for law enforcement and the workplace, is pleased to announce that preliminary human subject testing during the month of March have produced excellent results.
Key Points for BLOZF
1. Zero correlation trading with the SPX
2. No Dividends
3. Rallies were 482% and currently 37%
4. The previous pullback was 53%
5. Is currently overbought
1. With the average volume of 230K, the institutions are starting to come on board
2. One negative headline from Attn. General Session and this stock can and will take a nosedive
3. Smart traders are watching for selling then a possible rally going into the next two-year election with more states having Medicinal and Recreational use on their ballots
The bottom line: if and when the first Cannabis detection device is certified by law enforcement, demand can/will explode both domestic and globally.
Until then, any publically owned “detection device” players can be good trading candidates.
Full Disclosure: I currently do not own shares of BLOZF.
Tomorrow and the rest of the week we revisit our All-Star A-list candidates. No post on Friday.
Enjoy your day,
David O. England
Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2
This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.
DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.
If you have a question or comment, contact David England at firstname.lastname@example.org