CannaBusines Group, Inc. (OTCMKTS:CBGI) Faces Monday with Downward Pressures

CannaBusines Group, Inc. (OTCMKTS:CBGI) still does not look like a bargain, as the ticker spent almost all of last week deepening the correction. On Friday, CBGI had a net loss of more than 17% to $0.1348, as selling expanded to $1.24 million. The graph shows that CBGI is retreating with the loss of the initial enthusiasm, although the company managed to offer a last update on a name and logo change for one of its subsidiaries. CBGI0407.png

But the news on April 1st, concerning the development of Nor Cal Connection, did little to continue the steep and rather unsustainable climbing trend. For CBGI, the hope in the new week is that the lower prices, moving away from the peak above 40 cents, will prove attractive enough as a bargain, to draw in investors.MCIG0407.png

Paradoxically, investors’ forum opinions show an optimism that may send CBGI at least a bit higher in the coming week. News are expected, even a new acquisition of unknown conditions. Also, the days in the red indicate that CBGI may be oversold, as well as undervalued in the longer term. So while the legal marijuana stocks are beating a retreat, there is still hope for the upcoming months. General publicity will continue, and there are expectations about new legislation in more and more states. Also, there should already be rounds of earnings for at least the leading marijuana companies.

What is positive about CBGI is that at least it is now related to a clear-cut business model of supplying side products to other legal marijuana companies. CBGI will be ready to sell through an existing e-commerce site various containers and other paraphernalia, thus probably ensuring both exposure and some earnings.

With this, CBGI is ahead of similar tickers which are lagging in clarifying their product strategy. Also on its website, CBGI announced it has an acquisition program, in which it hopes to increase its portfolio of cannabis-related products.

Some of the most successful companies with sought-after stocks are those that chose a pure-play business model. E-cigarettes or vaporizers are a sure-fire way for solid success.

So while not insured against losses, mCig, Inc. (OTCBB:MCIG) remains rather solid, now with a small retreat toward $0.67. It is still not certain if MCIG could conquer the dollar prices with ease, but for now the ticker is moving without big crashes.

Vapor Brands Int’l, Inc. (OTCMKTS:VAPR) is another example, which however is not showing so much strength in the past weeks. Still, VAPR kept some of the gains and now hopes for a new direction from $0.17.

In the case of CBGI, the ticker is poised at a position where it would have to enter a new period, either as a stagnant, low-volume pot stock, or as an even stronger climber. All would depend on the right mix of publicity and the attitude of investors, but it is best not to rely too much on a positive development. Neither should you rely on a rebounce for the general Marijuana index, though it is now at a third of the price peak in February. While the cannabis sector may promise gains, the stock movements are still shaky and deep cuts happen on mass selling sprees.

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