North American Cannabis Holdings, Inc (OTCMKTS:USMJ) Bounces Hard

According to the OTC Markets, North American Cannabis Holdings, Inc (OTCMKTS:USMJ)’s CEO is called Stephen Rash, although some of the filings say that his name is “Steven”. Some eleven years ago, Mr. Rash was at the helm of a company called Power 3 Medical Products and he was in a bit of a pickle. Power 3’s stock was being pumped through voice mail messages and the scandal was so huge, that even the SEC were warning investors about it.

Mr. Rash explained time and again that he and his colleagues have nothing to do with the campaign and he promised that he will do everything he can to help the regulators get to the bottom of this. That didn’t stop investors from losing their money, though. The ticker crashed hard mere days after the first supposedly wrong number messages were recorded and after it stopped filing its reports in 2009, it was finally revoked last year.

USMJ is facing problems that could be quite similar. The stock has existed under its current ticker symbol for no more than three months, but it has already managed to go through a few waves of email alerts and it has crashed quite hard. The new trading symbol became effective on June 10, and thanks to it, USMJ tried to make a break for the $0.02 per share mark. Unfortunately, it failed to do that and it started a slide which ended on Tuesday when the ticker reached a bottom of $0.00075 per share.

It bounced, however, and it bounced quite hard. Despite the new 52-week low, USMJ managed to finish Tuesday’s session 50% in the green, and yesterday, it absolutely flew. 125% were added and the ticker came to a close of just under $0.003 on a truly remarkable dollar volume of more than $760 thousand.

Unfortunately, all the additional interest is due to more promotional activity. An analyst called Charles I. Reed from Caprock Research announced yesterday that, after doing his due diligence, he has reached a conclusion that USMJ can reach a near term price target of $0.15 per share. According to the press release Caprock has been engaged by USMJ to conduct ongoing analyst research.

Many things could suggest that Mr. Reed’s price target is a bit of a stretch. For one, his track record isn’t exactly crystal clean. Back in January, he published a similar report which said that ForceField Energy Inc (OTCMKTS:FNRG) can hit more than $8 per share. Back then, the stock was listed on the NASDAQ Capital Market, but after a scandal involving a scheme designed to manipulate the share price, it got transferred over to the OTC and it’s currently sitting at $0.02 per share.

USMJ‘s own situation isn’t exactly rosy. In fact, Mr. Rash and his colleagues announced yesterday that they haven’t been able to put together their annual report on time. That’s bad news because the most recent figures found in an official document are now quite old and as we mentioned in our previous articles, they don’t look like much.

The missing annual report means that we’ve no idea what the share structure looks like, either. At the end of March, there were about 48 million shares issued and outstanding, but we can safely say that this is no longer the case because yesterday, in a matter of a single session, investors traded a whopping 284 million shares.

We don’t know exactly how many shares have been issued over the last six months, but we do know that there were plenty of notes outstanding at the end of March. And we also know that they were convertible at discounts ranging from 30% to 50%.