Good Morning Lou,
I heard you this morning on AM640 talking about the pot market. One company I was looking at is Mettrum Health. Perhaps this is one you could review for us?
Love listening to you.
Thanks for the assignment and your support of AM640. This will be my first analysis of Mettrum Health Corp. (MT TSXV). The company is a licensed producer of medical marijuana in Canada. They provide whole bud and extracts from a wide variety of Indica, Sativa, and high CBD products. Cannabidiol —CBD— is a compound in Cannabis that has medical effects but does not make people feel “stoned” and actually counters some of the effects of THC. After decades in which only high-THC Cannabis was available, CBD-rich strains are now being grown by and for medical users.
An investigation of the charts will provide context to my evaluation.
The two-year chart indicates that MT has been trading below its 52-week high of $2.43 hit in November of 2015. Support near $1.50 has held up since August of last year and has provided a springboard for the most recent leg up. The company will report its fourth quarter and fiscal 2016 results on June 29 which should be on the calendar for investors holding or thinking of buying this stock.
The six-month chart pulls into focus the buy signals generated by the MACD and the RSI in May. The shares broke up and through the 50 and 200- day moving averages as the shares ran to resistance near $2.00. Another pattern that is worth mentioning is the pennant formation that formed in June. A pennant is a continuation pattern which seems to be pointing to an upside trade setting up.
MT has a market capitalization of $75.16 million which would place it in the speculative portion of your portfolio.
Next time I will inspect Insys Therapeutics Inc. (ISNY Nasdaq) as part of my deep dive into the weed market.
Make it a profitable day and happy capitalism!