Enertopia, Inc. (OTCMKTS:ENRT) Heads for Weekend on a Downward Shift
Enertopia, Inc. (OTCMKTS:ENRT) is on one of its downward trend in the past days, and now faces the weekend with a rather pessimistic mood. ENRT shed another 16% to reach a price of $0.53, though trading volumes were comparatively low at $800,000. Now, the question remains whether those positions for ENRT would be perceived as a buying opportunity, as it happened the last time that the ticker slid from peak prices. 
Still, for ENRT trading is relatively robust, and it lines up among the preferred MMJ stocks, with a general upward direction that so far has not deteriorated, despite the short-term corrections.
But the Thursday PR update could not do the work of boosting attention toward ENRT. The company announced it would be supplying itself with capital through warrants, raising more than $177,000. With a relatively low 46 million shares outstanding, the company could indeed afford to bloat its share structure a bit. Also, ENRT hopes to boost its limited activity thanks to the opportunities of the legal marijuana market. So far, the company has the following financial points:
- cash: $89 thousand
- current assets: $165 thousand
- current liabilities: $564 thousand
- NO REVENUES TO DATE
- net loss: $149 thousand
Now, for ENRT it’s a question of when the toxic effect of all the warrants would be felt, and if this marijuana stock manages to keep its rather respectable price at a time when most stocks are correcting the exceptional performance from February. At the beginning of the year, ENRT announced it planned to raise up to $1 million with warrant issues- but so far, there were not enough investors for the whole sum.
The behavior of the ENRT stock price resembles that of CannaBusiness Group, Inc. (OTCMKTS:CBGI), which shot upward, but is now trying to compensate for days of accumulating downward shifts. CBGI peaked above $0.40, but is now down more than 50%. It is similar with ENRT, which unfortunately could not repeat the $1 position, or claim higher stakes.
Investors’ forums indicate that ENRT is enjoyed for its short-term rising opportunities, as well as the possibility of short-term trading strategies. This means that buyers could still gain exposure and cause days of significant price change, all the while managing to avoid the effects of all the drawbacks that this stock carries.
ENRT also happens to be among the biggest losers on the Marijuana index, surpassed only by Cannavest Corp. (OTCMKTS:CANV), which slid down more than 21% to $25.30. It is easily seen that no amount of persuasion or a respectable stock price are an insurance against significant corrections.
In the case of ENRT, the danger is not only the general mood of the markets, but also of shedding some of the newly minted shares linked to the warrants. It is best to be aware of the risk, and avoid over-investing, hoping for a positive development in the short or in the longer term.
