Fusion Pharm Inc. (OTCMKTS:FSPM) Jumps 190% On Marijuana Hype
When we last left Fusion Pharm Inc. (OTCMKTS:FSPM) they were going down hard after an impressive climb. Now, they seem to be heading right back up again with blistering speed.
Thanks to all the media hype around marijuana legalization in Colorado, pot stocks have achieved volumes unheard of up until now and the market just seems to be picking up speed. Presently FSPM manufactures and sells a commercial hydroponic cultivation system, allegedly capable of growing almost any herb, vegetable, flower, fruit or terrestrial plant better and faster than traditional farming methods. With this in mind, it becomes immediately clear why investors would want to keep an eye on them.
As is always the case with explosive socio-economic developments, however, the market is still volatile and fickle, highly unstable. Patterns can reverse in the blink of an eye, as was seen on Jan. 3 with companies such as Medical Marijuana Inc. (OTCMKTS:MJNA) and Creative Edge Nutrition Inc. (OTCMKTS:FITX), who all suffered sudden market contraction. Said shrinkage pushed their stock down significantly, in some instances – as much as 30%, and for a while it seemed like the whole sector could be headed back down to the bottom of the charts.
Instead the whole sector stabilized for a session, then made a collective jump upwards, in a spectacular display of publicity-driven investing frenzy. Most companies managed a significant climb, but few can compare with FSPM, whose run took them 191.72% ahead in the Jan. 7 trading session.
Looking at the charts, throughout the trading day they were making steady progress, then at 15:44 their ticker suddenly exploded, reaching a high of $2 five minutes later, at which point it started descending. The session saw them close at $1.692, which is a supreme advancement any way you look at it. If they can maintain and move up even further is up for debate, however.
In cases such as the present it is of paramount importance that traders understand the situation on the market before committing. It should be duly noted that presently all the media hype is affecting the whole industry much in the way an extensive pump campaign of all of the parties involved in any way would. Stocks are soaring high one day, only to plummet the next. The market is unstable and unpredictable, with share prices growth vastly outpacing the the sector’s actual progress.
Potential investors will also do well to remember the marijuana hype in the first months of 2013, when publicity launched the whole sector sky-high and kept it there. For a short time, at least – what followed immediately after the buzz was over were a series of stock crashes that slammed most weed-tickers into the ground. Most companies fell so hard, they’ve since consistently failed at recovering their market value. Until now.
Today’s market does indeed offer ample opportunity to invest in marijuana stocks – companies such as Cannabis Science Inc (OTCMKTS:CBIS) and HEMP, INC. (OTCMKTS:HEMP) also seem to be riding the media publicity on their way up, albeit at more reasonable pace. Traders are, again, encouraged to do extensive in-depth research before committing to highly traded stocks.
