Historically, with investing the phrase, “Sell in May and Go Away” refers to the traditionally slow summer months. Investors usually sell their positions and go on a vacation until summer ends and fall begins. Unless we are talking about the red-hot marijuana space, which has kept investors entertained throughout these summer months and does not seem to be slowing down as fall approaches. Already more than half way through 2015 as 2016 approaches so does the voting ballots. A number of new states are jumping on board the legalization train like Florida, Massachusetts, California and Arizona, which leaves the future of recreational cannabis undecided for publicly traded cannabis companies and investors. Cannabis companies in the small cap space such as mCig Inc (OTCMKTS:MCIG), FBEC Worldwide Inc (OTCMKTS:FBEC) and Cara Therapeutics Inc (NASDAQ:CARA) have boosted the portfolios for investors these past three months.
mCig Inc a leading distributor of innovative products, technologies, and services for the global medical and legal recreational cannabis industry, released their Fiscal 2015 results this past Monday. For the year ended April 30th, 2015 mCig reported sales of $509,957 a increase of 42% or $151,010 form the sales for the previous year of $358,947. In the report it had its first quarter updates and the company is projecting sales to exceed quarter-over-quarter growth of more than 180%. Paul Rosenberg, CEO of the company states, “We are very pleased with the first-quarter growth. It was our best quarter ever. Along with increased sales, we are seeing improved margins and a stable cash position.” The company is focusing primarily on two separate branches: Consumer distribution and grow services and the company currently has 95 sales professionals, one of the biggest sales forces in the cannabis industry. MCIG appears to have found its bottom and over the course of the last month the stock has seen a 84.81% increase from lows of $0.027 to highs of $0.0499.
FBEC Worldwide Inc a beverage company with intellectual property formulas and marketing capability for the production and distribution of proprietary beverages has gained a lot of attention from investors over the last couple of months. The company has recently launched its H.E.M.P infused energy shot called The WolfShot. The company also reduced the authorized shares from 5 billion to 1.5 billion. The CEO stated, “As for our signature product WolfShot, we are currently wrapping up the beta version used for vendor sampling & retail awareness and will have a 100% completed product for wholesale & retail distribution shortly. We appreciate the patience of our consumers and are committed to releasing the absolute best product that will set a new precedent for the energy shot market.” This week FBEC has surged from lows on Monday of $0.012 to highs on Wednesday of $0.05. FBEC as of late has been seeing consistent trading levels between $0.02-$0.04.
Cara Therapeutics Inc. a biotechnology company focused on developing and commercializing new chemical entities designed to alleviate pain and pruritus by selectively targeting kappa opioid receptors, recently announced the dosing of the first patients in a Phase 2 trial of an oral tablet formulation of its peripherally selective kappa opioid agonist, CR845, for the treatment of osteoarthritis (OA). Joseph Stauffer CMO of Cara Therapeutics stated, “CR845’s novel peripheral mechanism of action may ultimately provide a safer, non-abusable alternative to NSAIDs and narcotic opioids, and satisfy a significant unmet need among osteoarthritis patients and potentially general chronic pain patients.” Over the past 3 months CARA has seen a price per share increase of 148.82% from lows of $9.40 in June to highs in August of $23.39. It has currently pulled back to price levels between $18.30-19.23.