Today’s focus will be on Stevia Corp. (STEV OTCQB) which is a farm management company with expertise in stevia agronomics.Stevia is the natural sweetener that is now found in over 6,000 products. The interesting part of the company’s operations from a marijuana perspective is their wholly owned subsidiary Real Hemp LLC. Real Hemp is working with customers to supply them with hemp products which include, seeds, edible oil, protein, fibre, and cannabidiol (CBD). There is also a move to establishing a joint venture in China to obtain licenses to produce and process hemp products.
Once again we are dealing with a company with a market capitalization of $5.372 million which makes it a higher risk opportunity as does the average daily volume over the last three months of 394,587 shares. With a stock that is trading for less than $0.05 the implied value of daily trading activity would come in near $12,000.Finally just to put a cherry on top of this risk sundae STEV trades on the Pink Sheets which I consider a high risk environment.
An inspection of the charts will identify the trend, support, and resistance as they pertain to this stock.
The three- year chart depicts a stock that began selling off as it came off a spike high near $0.35 in February of 2014. There is an established downtrend line that has provided resistance all along the decline. In addition a death cross has been in place since late June of 2014. STEV caught a lift off its 52-week low near $0.01 in January of 2016 and ran to resistance near $0.05 in June of the same year.
The six-month chart provides a close-up of the resistance near $0.05 as the stock was overbought. The pullback has taken the shares down to support near $0.0275 where there is some base building in progress.
STEV is a highly speculative stock and has to be handled with caution. There is scant evidence that we can expect a trend reversal in the near term.
Next time I will examine the case for Aphria Inc. (APH TSXV).
Make it a profitable day and happy capitalism!