CannaBusiness Group, Inc. (OTCMKTS:CBGI) Continues Above 20 Cents
CannaBusiness Group, Inc. (OTCMKTS:CBGI) seems ready to stick around for a while. The ticker survived the pre-weekend trading, and even added strongly to its rising trend. CBGI grew by more than 58% to $0.2078, on dollar volumes above $5.64 million. The successful day was pure inertia from a generally positive week, as the company gave details of its legalized marijuana partnership. 
The email promotion from Bull in Advantage (Blue Horseshoe Stocks) from March 7th also works to the benefit of this stock. But of course, the biggest factor is the fact that CBGI promises to be a part of the potentially lucrative Canadian legal marijuana business.
CBGI is seen with optimism in investors’ forums, as the strong upward trend inspires expectations of momentum, and the potential to command even higher positions. And the financial backing of CBGI is inspiring enough that the company may be seen as a more solid choice compared to other cannabis newcomers:
- $17 thousand cash
- $1 million total current assets
- $3 million total current liabilities
- $1 million revenues
- $816 thousand net loss
The only problem is that CBGI has the potential to attract new and inveterate investors- just as older buyers decide the run has been enough. Cannabis or not, the corrections for OTC companies come often and are often painful. Currently, the company has about 106 million shares outstanding, a medium-sized amount, though the free float is about 70 million shares. Daily share volumes reached 30 million in the past days, so it is possible to have enough shares waiting to pour in and dampen the price rise.
Unfortunately, even the most preferred companies can go through this kind of setback. In the last days of the week, Terra Tech Corp. (OTCBB:TRTC) showed a fatigue of the rising trend, and stepped back from the peak above $1.30. The ticker broke a streak of six days of solid and increasing buying with two days of mid-range selling.
Still, TRTC had the luck and momentum to outrun another strong contender, GrowLife, Inc. (OTCMKTS:GRNH). The hydroponics company grew in unison with TRTC as both tickers enjoyed mainstream mentions. But now, the growth has slowed, and GRNH only inches upwards, touching $0.58. While there were expectations GRNH would shoot up easily above the dollar, this proved a tough nut to crack, despite the amazing February enthusiasm that lifted almost all cannabis stocks.
If you prefer CBGI to other newcomers, be aware that not one of those tickers promises any solidity. While sub-penny selections tend to be riskier due to more aggressive trading, a climber like CBGI is also at risk of moving to a more habitual range, especially as email promotions end.
