Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
TIHS WAS WRITTEN BY ALAN BROCHSTEIN
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Through most of the first quarter, cannabis stocks were on fire. Unfortunately, the cannabis-rally has fizzled. Though the sector, as measured by the Benzinga 420 Marijuana Index , has more than doubled since the end of 2013, and is up 300% from the end of 2012, it has dropped about 60% since peaking eight weeks ago. Most stocks have returned to their longer-term moving averages.
Though momentum stocks have been under pressure across the market, the cannabis collapse ties in closely with recently elevated efforts by FINRA and the SEC. While the intent of the SEC to weed out bad actors is good thing for the sector on a long-term basis, their recent actions have left a cloud of uncertainty over the sector that is leading to a broad lack of investor confidence.
It has been speculated that the SEC could step up its involvement in the sector, and recent haltings have proven to be bad for the sector. Since early March, seven marijuana-related companies have been suspended:
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- Mar. 5, 2014 Aventura Equities, Inc. (AVNE)
- Mar. 14, 2014 Petrotech Oil and Gas, Inc. (PTOG)
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Mar. 21, 2014 Citadel EFT, Inc. (CDFT)
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Mar. 27, 2014 Advanced Cannabis Solutions, Inc. (CANN)
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Apr. 10, 2014 GrowLife, Inc. (PHOT)
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May 7, 2014 Cannabusiness Group, Inc. (CBGI)
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May 16, 2014 FusionPharm, Inc. (FSPM)
The next, and most damaging, suspension was PHOT, considering they were likly the most widely held stock in the sector. The company, which is a frequent filer with the SEC, had run up from a Q3 low near $0.03 to a $0.78 high in March. Share prices soared because investors embraced the company’s "GIFT" strategy that provides capital to growers. The SEC halt announcement cited "concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in GrowLife’s common stock."
The sixth suspension, CBGI, was less disruptive since the company was not widely held, but Friday’s FSPM suspension pushed the market to recent lows. The SEC order was much more specific, calling into question the comapny’s accounting. Denver based FSPM appeared to be very busy filling customer orders, but has never filed any audited statements. Both CBGI and FSPM traded on the OTC Pink Market.
on their fundamental efforts to make sure that the companies in which they are investing are legitimate.
This is part one of a five part series with 420 Investor Alan Brochstein. Don't forget to register for the 1st Annueal Cannabis Investor Conference...check it out here!
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.