ulations than trading on the major exchanges (e.g. Nasdaq and NYSE). Institutional investors try to minimize
risk as much as possible; and investing in companies
that have strict listing requirements minimizes investor
risk. In other words, OTC companies have trouble gaining credibility with institutional investors. Without institutional investors buying an OTC stock there is minimal
shares traded and wide spreads in bid and ask prices
(what you can buy and sell a stock for). For beginner investors, this means that if you buy a stock and turn right
around and sell the same stock, you can lose a significant amount of your investment within seconds or it
can take a long period of time to get back to breakeven.
In short, OTC companies attract day-traders and toxic
investors who care nothing about the companies they
invest in but only care about buying a stock and selling
the same stock as soon as possible to make a profit,
which results in increased volatility (stock price rapidly
increasing and decreasing) with no sustainable increase
in stock price.
Due to these recent developments, we are justified in
including cannabis bio-techs at the top of our CANNAINVESTOR Magazine Top 20 Stock Picks. In addition, we feel as the states and federal government
legalize cannabis, they will also implement strict cannabis testing guidelines and regulations.
Let’s be honest, the state and federal government’s
first responsibility is the safety of its citizens. Therefore, we are including DigiPath, Inc. (DIGP) and Pazoo,
Inc. (PZOO) in our CANNAINVESTOR Magazine Top
20 Stock Picks. MassRoots Inc. (MSRT) will drop off
the CANNAINVESTOR Magazine Top 20 Stock Picks
and will be added to our Stocks To Watch list.
In summary, we are aggressively bullish in the shortterm for cannabis bio-tech and testing labs and moderately bullish long-term for all other cannabis subsectors.
CANNAINVESTOR Magazine