Creative Edge Nutrition Inc. (OTCMKTS:FITX) Stumbles Before Announcement
Creative Edge Nutrition Inc. (OTCMKTS:FITX) dropped 7.52% yesterday, as the effects of its last attempt to roil the market started to wear off.
Like many other companies in the branch, FITX seems to occasionally rely on exposure through the social networks to boost its stock. The company’s latest jump was facilitated solely by a Facebook post related to the company’s progress in its Canadian growing facility. As all hype-driven surges, this one didn’t last long, and now the company is back to its previous price of $0.0849.
However, after yesterday’s closing bell, another post that appears to be a similar publicity stunt hit the company’s Facebook page. Said post “confirmed” that the company’s management team has been to Las Vegas, celebrating the early completion of FITX‘s growing facility. It stated that Health Canada has been contacted and a pre-license isnpection has been requested.
The news is already circulating online, exciting investors and hyping the market. An official announcement is expected to hit the wire any day now, perhaps even today. If it does, it will likely be taken by marijuana stocks enthusiasts as the “green light” they have been waiting for, a clear signal to jump at FITX stock.
But before overhyped investors “start their engines”, a recap of the company is in order. FITX‘s latest financial report was less than impressive. The company has been performing poorly in the commerce department for a long time now, and currently there is no real guarantee that this state of developments will change dramatically in the near future.
Even if the greenhouse is approved by Health Canada right away, it will take a substantial amount of time for FITX to set it up and start the cultivation process. Further, even if FITX finaly manages to get ready to roll out, it will be up against some hard competition.
Because there are currently over 600 OTHER APPLICATIONS in process with Health Canada to accredit soon to be medical marijuana producers all across the country. Additionally, there are 38 thousand registered users with Health Canada who are currently permitted to produce and cultivate the drug for medical consumption.
With this in mind, enthusiasts who thought that FITX will be able to effortlessly monopolize the Canadian marijuana market might want to reconsider.
Another thing investors are advised to avoid is committing to a stock solely based on hype and hope, no matter how convincing the company’s PR may be.
Another company whose management has been having “good times” in Las Vegas these days, as documented on its Facebook page, is HEMP, INC.(OTCMKTS:HEMP). It, too, managed to fall nearly 7% during yesterday’s trading session.
