BreedIt Corp. (OTCMKTS:BRDT) Continues to Generate Momentum

BreedIt Corp. (OTCMKTS:BRDT) looks like a longer-lasting trend despite the sudden appearance on stage. On Wednesday, the ticker was the hardiest daily gainer on the Marijuana index, adding more than 29% to $0.88. Buying volumes went ahead to more significant levels above $1.64 million.

BRDT is enjoying the approval of investors’ forums as a fast and stable mover, though the activity and commentaries are limited. It is still unknown how BRDT would manage to apply its agricultural operation software to the marijuana sector, but the stock has found its place among the active movers, and now runs on significant momentum.

BRDT promised it is holding negotiations with an Israeli medical cannabis company, which would buy the software license and use the program for its growing facilities. But still the deal has not materialized, and does little but offer occasions to revive PR messages. Otherwise, the company shows very little to justify the high expectations for business success. The financial statements reveal:

• cash: $9,136

• current assets: $20 thousand

• current liabilities: $125 thousand

• quarterly revenue: $1,462

• quarterly net loss: $28 thousand

Strangely, BRDT rises even without boost from paid promoters, which may be considered a good thing, as the ticker avoided a quick burnout. Still, being at the peak of a long and sustained trend means the risk for reversal remains significant. In addition, BRDT has not arrived with new PR since the end of February, and a new message could serve as a booster to the trend, especially as the $1 level is approached.

The software and technical side of the marijuana business remains attractive for many small cap companies, which propose an easy way for exposure to the sector by re-applying their products. This was also the domain of Intelligent Living, Inc. (OTCMKTS:ILIV), which found its place among the movers after announcing plans to deliver apps for medical cannabis usage. ILIV, unfortunately, sank back by more than 50% to its previous double-zero positions.

A similar arc ran for Fortitude Group, Inc. (OTCMKTS:FRTD), which charmed investors enough with news of financing and cannabis partnerships. FRTD went close to $0.03, only to sink back to $0.017 as the news became repetitive.

Choosing a ticker from the MMJ index may mean greater trading activity and perhaps a less volatile movement. Still, even those selections are threatened by falls, as even the index itself slashed 50% off its value. In the case of BRDT, while the run and stability are substantial, you still need to be prepared to absorb the eventual price shocks.