American Cannabis Company Inc. (OTCMKTS:AMMJ)’s Bounce Didn’t Last
American Cannabis Company Inc. (OTCMKTS:AMMJ) crashed badly once more in yesterday’s trading, after getting just one brief session of respite on April 20.
This latest tumble has taken the ticker well below the quarter mark, and by the way things look, the ticker may be looking at at least a couple more red sessions before it stabilizes. Why?
Well, while it definitely can be said that AMMJ has made notable progress in the last year or so with respect to becoming a commercially viable entity, its latest financials indicate that it is still far from even breaking even – let alone becoming profitable:
- cash – $556 thousand
- total current assets – $713 thousand
- total current liabilities – $593 thousand
- annual revenues – $2.8 million
- annual net loss – $516 thousand
This pretty much means that the hype that launched it so far up the charts was baseless, and wouldn’t hold it up on its elevated position for too long.
Another dead giveaway that the ticker was very likely to head down, and soon, was the fact that the company had pulled some pretty nasty stocks shenanigans in its not so distant past, issuing notes that could be converted into AMMJ common stock at fixed prices of $0.08 per share.
In conclusion – it could still be possible for quick and bold investors to find windows of opportunity for profitable trading of AMMJ stock, but attempting to exploit such windows is, as of now, extremely risky. Investors need to take that into account and act accordingly.
