NORTH AMERICAN CANNABIS HOLDINGS, INC (OTCMKTS:USMJ)’s Bounce is Short-Lived
After catching a big percentile boost on a so-called ‘research report’, the stock of North American Cannabis Holdings Inc (OTCMKTS:USMJ) is hurtling back towards the dark reaches of triple zero land. On Friday USMJ dropped another 36% and stopped at $0.001 per share.
The reason why USMJ cropped up among the OTC’s biggest dollar volume movers is the so-called ‘research report’ that was put up on September 30. The material’s publication was announced by the company through a press release and the whole piece was put up on USMJ‘s own website. The ‘report’ was compiled and signed by one Caprock Research, represented by a Mr. Charles I. Reed, a chartered financial analyst, if the material is to be believed.
Caprock gave USMJ stock an “accumulate” recommendation and set ludicrous target prices, with $0.15 in the short term and over half a dollar as a long-term target price. Everyone who can set aside 10 minutes and rifle through the company’s public reports can see why those claims are wildly unfounded. The fact that USMJ did not come through with its now-overdue annual report also does very little to boost investor confidence.
Those who are still enthused about the stock may want to know the names of a few other companies Caprock compiled reports on and recommended to readers. Those include ForceField Energy Inc (OTCMKTS:FNRG) – a former NASDAQ stock that got suspended by the SEC over “articles and promotions touting FNRG”. FNRG is currently trading for $0.02 per share on the OTC. Caprock also promoted and set ridiculous target prices for another company named Southern USA Resources (OTCMKTS:SUSA) who also got suspended by the SEC due to concerns related to the company’s operations and outstanding shares.
With such a track record, the report Caprock compiled for USMJ seems even more hilarious.