Medical Marijuana Update: V.THC makes a run as Next Gen launches plan

Chris Parry Chris Parry, Stockhouse.com
7 Comments| March 20, 2014


Yesterday’s big move on the ganjco front was a massive drop on Abattis Bioceuticals that shed around half of its price in an hour, while a ton of cash flowed into Next Gen Metals.
 
Turns out a hefty short play landed on Abattis which, no doubt, triggered a lot of stop losses. The company appears to have found its feet again, still well ahead of where it was a few weeks ago, but the experience will have taught a lot of new players the rules of the game.
 
Today the action seems focused around V.THC (Thelon Capital), which hasn’t announced any news but is as good a place as any to park when few companies have an actual business plan in place, especially with that ticker symbol. V.BUD is also getting traction.
 
Next Gen released plans today to launch a medical marijuana conference company, which will hit the ground running in Vancouver and Toronto in April and puts them in the 'companies with an actual 420 plan' category.
 
Terra Firma Resources has joined the MM fray, taking the unusual step of asking for the public to send in ideas for new projects.
 
James Nelson, a director of Terra Firma said in a news release, "We are excited about the potential of the current asset in the Company, but in light of the recent activity displayed in the market in general we would be doing a disservice to our shareholders to not investigate other opportunities that may increase shareholders' value. The board welcomes any submissions for evaluation to terrafirmarinfo@gmail.com".
 
Terra Firma has an insane amount of bids stacked up at $0.02 (some 12m last I looked), with 1m+ on the ask at $0.025. Daytrader special that could go anywhere or nowhere.
 
In other news today, Medical Marijuana Inc (OTO:MJNA, Stock Forum) has announced what may be the most genius medical marijuana stock play yet: They’ve started an armored car transport business for ‘secure safe services for legal cannabis businesses.’ Being as banks will not off FDIC-insured banking to MM companies, MJNA’s ‘MPS International’ arm offers physical security, surveillance, and secure transport, as well as “armed and unarmed security for grow operations, inventory and revenue transport, a secure depository, compliance oversight and workplace protection.”
 
The company has expanded into four states since January 1.
 
The US Marijuana Index (^MMJ) was down 6.74% to $25.04 today, as our own Stockhouse Canadian MJ Play index, consisting of 1000 shares of all companies we’re covering, ran up to $7896 today, having started its life at $7648 (adjusted) last week.
 
Now beginning coverage Cannabis Therapy Corp, Senator Minerals, Southbridge Resources, Terra Firma Resources. Watching Copper Reed Mining and Cynapsus Therapeutics for confirmation they’re joining the doob diaspora.

 
(Updated at trading close)

88 Capital Corp. (TSX:V.EEC, Stock Forum): Down 37.5% in shallow trading today, the worst performing stock in our coverage. A wild swinger fuelled by rumor and daytrader profits, there’s been no public indication that this capital pool company is making any move into medical marijuana, in fact they haven’t released any news on any topic since they listed, but there are whispers out there that this will be a 420 play and that’s been enough to make it move hard and often.
 
Abattis Bioceuticals (CSE:C.ATT, Stock Forum): Up 2.2% today, after the stock yesterday was rocked by short sellers and stop loss triggers. Had flown up to $2.89 before dropping to around $1.80, before coming back to close to the open. Still not bad for a company that opened the month at $0.20. Company has bought up organic and hydroponic IP from 30-year marijuana fertilizer player Green-Gro, as well as Nature Juice fertilizer products. Has previously purchased Biocube Green Grow Systems. 

Alchemist Mining (TSX:V.AMS, Stock Forum): An early rumor mill favourite, up 7.1% today, was down the last couple of days before that, essentially halving in a week. No news, small volume.
 
Ansell Capital (TSX:V.ACP, Stock Forum): Unchanged early but blew out late in the day, jumping 28% between 2pm and close. Last week this nearly doubled on an announcement it was seeking “opportunities in agriculture, medical, technology, finance and resources”, which has quickly become code for ‘raising money to get into medical marijuana’. Lots of positions building here.
 
NEW - Cannabis Therapy Corp. (OTCQB:FWSI, Stock Forum): Down 5% on miniscule volume. Formerly Frac Water Systems, this company announced Tuesday “a corporate restructuring in connection with its entry into the business of manufacturing and marketing pharmaceutical level products containing phytocannabinoids, an abundant and pharmaceutically active component of cannabis, for the treatment of various conditions and diseases.” Management have blessed themselves with 25m shares and 1.9m stock options before actually revealing any details of their plan, so take that into consideration before you double their (non-)investment.
 
Compton Petroleum Corp (TSX:T.CMT, Stock Forum): Formerly Newton Gold, word on the street is that Compton has ‘changed business model’ (which might explain the new company name), but has made no public announcement as such. On the basis of that rumor alone (and it’s not backed by any verification), stock has leapt from the $0.04 range in early February to $0.27 today (with a small float of just 7.6m shares outstanding). Should be noted, before this price rise, shareholders were REALLY unhappy with management. Long at your own risk. Up 10% today.
 
Easton Pharmaceuticals (OTO:EAPH, Stock Forum): A heavy volume trader across the border, up 6.9% today. Doing several deals with medical marijuana-related companies but stock very volatile with 200m shares out.
 
Enertopia (CSE:C.TOP, Stock Forum): Largely unchanged. Low volume compared to the early part of the week. Recently announced the exercising of $290k of warrants. Recently announced the signing of a Senior Vice President of Marihuana Operations. C.TOP stock has been a ten-bagger-plus since January 1.
 
Global Hemp Group (currently Arris Holdings) (CSE:C.AAF, Stock Forum): Down 4%, have announced listing on the Xetra Exchange in Frankfurt. Company has previously announced a shift towards hemp industry and related products, stock split and name. Accumulation taking place and shortening of supply on the ask side. I’d bet on upward movement tomorrow.
 
Growlife Inc. (OTO:PHOT, Stock Forum): Moving a ton of shares on the OTO. Working as a consolidator of cannabis companies. Stock chart is an increasing upward line since October of last year. Half billion dollar market cap. Up 7% today.
 
Modern Mobility Aids Inc. (OTO:MDRM, Stock Forum): Unchanged on strong volume following a 30.7% drop Thursday. Announced in early February it would shift to the ‘alternate medicine market’, looking at the remedial properties of marijuana in ‘its natural plant form.’ Has since increased dramatically from $0.005. Apparently cannabis is a better play than building Rascals.
 
Naturally Splendid Enterprises (TSX:V.NSP, Stock Forum): Up 4.5%. Has announced the formation of an advisory board but focused on retail. Low trading volume. Company deals in hemp-based nutritional products and has national distribution deals in place but isn’t catching the medical marijuana wave others are.
 
Next Gen Metals (TSX:C.N, Stock Forum): Profit-taking has finally kicked in on Next Gen after several days of crazy double-digit surges. Down 10% today. Has announced it will be focusing on medical marijuana and industrial hemp industries after Harry Barr took control of the firm. He says the company is looking to ‘consolidate certain sectors of this fragmented industry’, and is currently reviewing 45+ business plans and proposals for getting into the space. The first of these initiatives is a Medical Marijuana conference.
 
Pan American Fertilizer (TSX:V.PFE, Stock Forum): Down 13.5%  today. Growing trading volume after company announced plans to raise 500k through a PP. Worth remembering that this company has made no public move towards the medical marijuana field, but does have a loose relationship with Scott Walters, the Medical Marijuana industry consultant putting oomph in V.BUD and V.THC, which saw shares in the company take off last week. Whispers of this company delving into ganj’ are coming from multiple sources but, after today, I’m moving it back to the rumor list.
 
Satori Resources (TSX:V.BUD, Stock Forum): There’s finally a little lift in Satori stock with a 23.5% jump after several days of retreat. Still no news beyond previously noted ‘medical marijuana-ish’ moves, and the stock is subsequently very volatile. This company also ranks in the top ten most active bullboards on Stockhouse, so it has become the defacto MM clubhouse for rumors and pumping of other stocks.
 
Seaway Resources (TSX:V.SEW, Stock Forum): Stock has been all over the place, but steady today. $0.025 on moderate volume. Still no announced business plan.
 
NEW – Senator Minerals (TSX:V.SNR, Stock Forum): Largely unchanged on weed business rumors. Company hasn’t made a public move yet but shareholders are talking about future plans in the space. Wouldn’t be the first change for this company – it has been called Cross Canada International, Cross Canada Resources, and Manbar Explorations previously.

NEW – Southbridge Resources (CSE:C.SOU, Stock Forum): Unchanged. Former miner has completed a $320k private placement as it does due diligence on the potential acquisition of Vodis Innovative Pharamceuticals, which has made an application to Health Canada to be a licensed medical marijuana producer. Vodis ‘intends to acquire all of the operating assets of 934145 BC Ltd’, which has a current license.
 
NEW – Terra Firma Resources (TSX:V.TFR, Stock Forum): Yesterday, 22m shares traded in this company and it doubled in share price. Today the volume is much lower and it shed 16% to drop to $0.025. Terra Firma just announced that it will be “actively pursuing additional corporate growth drivers.” For the uninitiated, this has become code of late for ‘We’re hoping to figure a way into medical marijuana, or that people will at least think we are and buy a lot of our very cheap stock.’ “The new areas that will be investigated will potentially include, but will not be limited to, agriculture, medical, resources and real estate. At this time no new project has been contemplated and there is no guarantee that one will be completed.” There are a LOT of buyers out there sitting on half-penny gains. 12m volume sitting on $0.02 bids, from a 65.1m float of outstanding shares.

Thelon Capital (TSX:V.THC, Stock Forum): Today’s big play, up 36.8% on 3.9m+ volume. Only indication the company is looking to medical marijuana (aside from the all too obvious ticker symbol) is the signing of medical marijuana industry consultant Scott Walters to the Board. Was $0.05 in mid-February, $0.135 now. Profit-taking likely in the morning but, with this sector right now, it could just as easily double.

Tags: INDUSTRIAL METALS & MINERALS ENERGY BIOTECHNOLOGY CONSUMER CYCLICAL

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bobodolen
no mention of nvlx,as they started some time ago with more emphasis on medical as opposed growth or supply,is this a reason for recent decline
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March 22, 2014
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hoffcra
Hey Chris, any word when Tweed will hit the TSX ?
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March 20, 2014
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cparry
Hegemonic: I don't disagree. Big runners will be the companies that do more than 'explore' the market. I'd suggest there's room for five companies to lock in as legit and really take an upward run. First mover advantage will be great. The rest will fall away.
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March 20, 2014
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hegemonicoblivion
I am still waiting for the one with the proper business plan, the business plan of the day, has been to "get into the business". Typical style, most are not analyzing the facts, this will be a commodity style of business, there is no real value added for the most part to differentiate and obtain higher margins.. So it will be dog eat dog in about six months, and likely far too much commodity for the legal marijuana market to handle... lower pricing, lower margins.. cash to cash cycl...
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March 20, 2014
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dipstick8
Watch for a new company to hit the Canadian stock exchange this spring named PharmaCan. These guys are getting it done and making sure everything is in order before listing. They just raised 5 million and already have a license and are all ready making money.
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March 22, 2014
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saskstocks
Hey Chris, you can now add V.SL and V.WIF to your ongoing comments.... Crazy day for V.SL on Friday...
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March 22, 2014
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SAGE1
Smells like Tulips......
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March 21, 2014
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