American Cannabis Company Inc. (OTCMKTS:AMMJ) Takes A Step Down
The results in American Cannabis Company Inc. (OTCMKTS:AMMJ)’s latest financial report managed to push the ticker explosively up the charts for two consecutive sessions – but is AMMJ‘s momentum spent already?
Yesterday’s 16% tumble seems to indicate so, but then again – that might just be the result of the share shenanigans that AMMJ has pulled in the past finally catching up with the ticker.
After all, according to the very same report that pushed it up the charts, as of its filing, AMMJ had $71 thousand worth of debt that is convertible at a fixed price of $0.08 per share. That’s less than a third of what investors have to pay to buy a single share of AMMJ common stock on the market, even after yesterday’s crash.
Once that is taken into consideration, it should be obvious why treading lightly and keeping their eyes peeled might be the best option for AMMJ investors at the moment. True enough, judging by the report, the company has made a lot of progress over the fiscal 2015:
- cash – $556 thousand
- total current assets – $713 thousand
- total current liabilities – $593 thousand
- annual revenues – $2.8 million
- annual net loss – $516 thousand
However, the impressive revenue growth does not magically erase all of AMMJ‘s other shortcomings – such as its toxic notes still outstanding and the fact that it is yet to break even, in spite of all its efforts.
The combination of these factors pulling AMMJ every which way is what makes it so volatile and unstable. Investors would do well to keep that in mind.
