General Cannabis Corp (OTCMKTS:CANN) has been having a rough time in the market for the past several trading sessions. Which, to me, is a major surprise considering the new legislation that passed in several states this election season. Today, we’ll talk about what we’ve been seeing from the stock and what we’re seeing today, why the declines are shocking, and why the recent CANN declines are presenting an opportunity!
What We’re Seeing From CANN
As mentioned above, General Cannabis Corp (OTCMKTS:CANN) hasn’t had the best of times in the market lately. Ever since the election results came in, the stock started sliding. This came after big gains leading up to election day. Nonetheless, the declines that we’ve seen on the stock are continuing today in a big way. Currently (1:47), CANN is trading at $3.60 per share after a loss of $0.35 per share or 8.86% thus far today.
– This article appeared first on ModestMoney.com.
Why The Declines Are Shocking
Anybody that had been watching cannabis stocks leading up to the election was likely expecting the exact opposite. With multiple states having marijuana-related issues on the ballot, things were looking great. As election night counting concluded, we learned that multiple states had legalized marijuana on either a medicinal or recreational level.
Considering that new laws in multiple states now allow for the possession and consumption of marijuana-related products, the declines are shocking. At the end of the day, the election results have ultimately expanded the horizons for CANN and just about every other company in the industry. Think about it, these companies now have several entire states that have become a potential audience for their products. That is a big win!
Why This Is An Opportunity
While others may be looking at the recent declines and thinking, “I’m staying away from that”, I’m thinking the exact opposite. At the end of the day, the declines in General Cannabis Corp (OTCMKTS:CANN) are the result of uncertainty. Each of the states that have legalized marijuana now have a process that could last months or years that dictate things like where marijuana will be purchased, where it can legally be consumed, and more. These laws will largely dictate potential profits in these new states.
Nonetheless, this is an incredible opportunity. At the end of the day, the great Warren Buffett made billions in the market by buying when fear was high and selling when greed took over. At the moment, fear is high on CANN. However, the fear is unrealistically high. At the end of the day, the company now has a much larger audience for its products, and while it may take a year or so to market to these areas, this will soon turn into increased revenue.
Another important thing to consider here is how quickly views toward marijuana are changing. A decade ago, the conversation with regard to the plant was very different. Today, there’s a country-wide push for legalization, and as this push leads to results, CANN will benefit.
What Do You Think?
Where do you think CANN is headed moving forward? Join the discussion in the comments below!
About the Author: Josh Rodriguez