Today’s candidate in the search for investment opportunities in the emerging marijuana industry is OXIS International Inc. (OXIS OTCQB). The company is involved in cannabinoid therapy development and commercialization as well as other areas of research. OXIS has a licensing agreement for a treatment of multiple myeloma and has begun early stage clinical trials involving some of their molecules. My efforts indicate that the company has a market capitalization is only $8.23 million and will have to go to the market to fund its projects.
A review of the charts will help identify how best to proceed with this stock.
The three-year chart depicts a stock that has seen better days. The shares hit a high over $12.00 in late March of 2015 and has been trading lower ever since. There is an established downtrend line and the death cross that surfaced in July of 2015 signalled that investors could expect more selling pressure to follow. It it worth noting that the shares have met resistance along the 50-day moving average since October of 2015.
The six-month chart is not producing any indications that we can expect a new leg up to begin in the near future. The best that can be said is that OXIS has been building a base near $0.33 since May of 2016.
At this time the stock has too many strikes against it to recommend a buy. There is the established downtrend, the death cross, the continuing resistance along the 50-day moving average and the paucity of signals from the MACD or the RSI. The last note of caution comes from the fact that it trades on the pink sheets which as mentioned in earlier posts is a high risk environment.
I would advise taking a cautious approach when considering OXIS for your portfolio.
I’m going to be offline until July 18. When I return I examine the situation at Stevia Corp ( STEV OTCQB).
Make it a profitable day and happy capitalism!