IMD Companies, Inc. (OTCMKTS:ICBU) is one of the many companies that got in the medical marijuana sector as the hype surrounding it blasted some stocks sky-high. The ticker had its rough period in the last few sessions, but it seems to have changed direction in an upward course.
Despite the fact that ICBU
was issuing regular optimistic press releases the stock seemed to be headed straight down and went below 10 cents per share on Tuesday. At the moment we are not quite sure if ICBU
‘s PR from yesterday was the reason for their jump or the news about the industry.
Yesterday, it was announced that there has been a letter sent by eighteen federal legislators stating that the current Schedule I substance status of marijuana makes no sense, because Schedule I doesn’t recognize medical use, despite the evidence.
This was the most probable reason for ICBU
‘s 37.50% jump yesterday, as the ticker closed at $0.11 on below average selling volumes. We saw a total of 4.1 million shares change their owners, which generated some $427 thousand in dollar volume.
Some of the stronger companies in the sector, like Medical Marijuana, Inc. (OTCMKTS:MJNA
), Growlife, Inc. (OTCBB:PHOT
), Cannabis Science, Inc. (OTCMKTS:CBIS
) and Hemp, Inc. (OTCMKTS:HEMP
) also benefited from the news and changed direction after a period of sliding down the charts.
Nonetheless, the financial state of ICBU
isn’t that good compared to the big players in the industry, who have already managed to acquire financing. It remains to become clear when and how ICBU
will start making steps toward access to the funds needed to carry out their business plan.
The sector remains as volatile as it can get and there are a lot of companies flooding it, in hopes of boosting shareholder value. This year will be very intense for companies in the industry and we are quite sure that there are going to be a lot of burnout stocks after it is evident who the leaders are.
This is the reason for which we would advise you to do your due diligence and weigh out the risks, before deciding on which company are you going to bet.