Creative Edge Nutrition Inc (OTCMKTS:FITX) Slips Again
As we wrote on Friday, some positive news dug Creative Edge Nutrition Inc (OTCMKTS:FITX) out of the ground during the final sessions of 2013. The company received a green light from Health Canada which allowed them to produce and distribute medical marijuana North of the Border. The news was also picked up by Forbes which, along with the general craze created around cannabis stocks, pushed the volumes through the roof.
The ticker registered impressive gains in terms of value and, at $0.006 per share, some people even thought that FITX might actually break the $0.01 barrier for the first time since April 2013. Unfortunately, on Friday, the stock slid by around 10% and finished the week at $0.0051. So, what does this tell us about the future performance?
Well, the historic chart movement suggests that FITX might just be in the process of disappointing investors for the umpteenth time. It’s no secret that the ticker has been far from the most solid performer on the OTC Markets and just a quick look at the three-year chart reveals that, if anything, we might expect some more sliding in the days to come. Will that happen though?
Time will tell, but we should point out that volatile penny stocks like FITX often display minor pullbacks during prolonged surges in the right direction which means that more green sessions in the near future aren’t out of the question.
What’s more, FITX wasn’t the only cannabis ticker to slip at the end of last week. Medical Marijuana Inc (OTCMKTS:MJNA), Cannabis Science Inc (OTCMKTS:CBIS), Terra Tech Corp (OTCBB:TRTC), and Hemp, Inc. (OTCMKTS:HEMP) all closed Friday’s session with some losses which could suggest that the industry itself is going through a hiccup.
A piece of news appeared during the weekend, however, that could give marijuana stocks another boost.
New York Times reported on Saturday that the Empire State’s Governor, Andrew Cuomo, might be having a change of heart. As you can read from the article, Mr. Cuomo has been against legalizing marijuana, even for medicinal uses, for quite some time but it seems that right now, he seems to have decided that loosening the laws a bit could be the right thing to do.
This is bound to affect the volatile world of penny stocks and surges in the right direction from the cannabis tickers won’t be at all surprising. Even though FITX have yet to announce plans about selling their hemp-derived products in New York, their market cap might also see some movement.
So, while nothing can be said for certain, short-term outlook seems positive. But what about the longer run?
This is a bit of a different story. The recent press releases suggest that the company is working hard to get the marijuana business in Canada going, but the management team still seems reluctant to give us any deadlines or more details around the start of weed production. FITX‘s other line of products, the sports nutritional supplements, should still be going at the moment, but we’ve no clue if the company has moved any closer to becoming profitable.
Part of this is due to the fact that the annual report for the period ended September 30, 2013 won’t be out until the beginning of next week. If the shareholders are unimpressed by the figures found in it, the ticker could be in for another drop and this time, news about relaxed marijuana laws might not be able to break the fall.
That’s why you should be extremely careful when considering all the risks.
