New Ticker Works Wonders for Cannabusiness Group, Inc (OTMKTS:CBGI)
We wrote about Cannabusiness Group, Inc (OTMKTS:CBGI) yesterday and our article went online a couple of hours before the start of the session. If you have a quick look at it, you’ll see that we covered the stock’s (previously traded under the MWAR symbol) impressive Valentine’s day run which provided traders with some magnificent opportunities for a profit.
Yesterday, the new ticker became officially effective and the performance was just as astonishing. 32 million shares swapped hands in just six and a half hours, resulting in a dollar volume of more than $940 thousand. CGBI gapped up and opened the day at $0.0263 (a whopping 75% above Friday’s close). It hit an intraday high of nearly $0.042, but then plummeted towards the lower levels. When the closing bell rang, CBGI was sitting at $0.027 which is around 81% above Friday’s value.
An impressive performance for a newly-born ticker, no doubt, especially considering the lack of any immediately obvious paid pumps. Some people around the message boards, however, are convinced that this is just the beginning and early trading today suggests that they might just be onto something. CBGI opened the second session under its new symbol with another gap up, at $0.0343 per share. It hesitated a bit, but about half an hour in, it seems to be holding its own and it refuses to drop below the $0.03 mark. Is the surge really that much of a surprise though?
The marijuana hype has been absolutely astonishing since the beginning of the year and we see countless small cap companies like Extreme Biodiesel Inc (OTCMKTS:XTRM), Primco Management Inc (OTCBB:PMCM), Bayport International (OTCMKTS:BAYP), and Strategic Global Investments, Inc (OTCMKTS:STBV) trying to make it in the scorching hot business.
If you are a regular follower of our articles, however, you know that very few of them can show us anything solid in terms of operations which, in turn, raises substantial doubts around their ability to perform consistently in the future. So, is CBGI, one of the newest pot stocks out there, any different?
You can see from yesterday’s coverage that we had some doubts. Although the investment public was taken over by the cannabis hype, we were hoping to see a press release that would shed some light on the details around the corporate restructuring.
A few hours after our article went online, CBGI published a press release. Unfortunately, it doesn’t seem to be particularly informative. In fact, when you take a really close look, you’ll get the sense that CBGI were in quite a hurry to get the announcement online.
There is a business description of the new company, but it was copied from their website and, as we mentioned yesterday, it seems a bit ambiguous. At the same time, CBGI fail to inform us what will happen to their sports nutrition business which is, we reckon, quite important considering the fact that it was moderately successful. The PR contains a couple of quotes from Cannabusiness’ CEO, but that’s where things get almost comical.
For one, his name is missing. We’ve no idea if he will serve as the CEO of the subsidiary only, or if he will take the helm of the public company as well. His speech sounds encouraging, but it would have been better if he had thought of it himself.
At one point, the anonymous CEO says: “We believe the state of Colorado will serve as a model in the regulated marijuana industry for other states going forward, and we plan to capitalize on this unique growth opportunity.“.
Six months ago, another publicly traded company called Promap Corp (OTCBB:CANN) (now known as Advanced Cannabis Solutions, Inc.) were announcing their own entrance into the marijuana industry and as you can see from this press release, their CEO (whose name is Robert Frichtel) said exactly the same words.
Coincidence? We’ll let you decide.
