Veritas Pharma (VRT.C), the medical marijuana research stock that took a two week hit as a large investor dumped his stock to market, rebounded fully today on a day of big buying that saw the stock return to its several month average.
Two weeks ago I posted a story about how the bigger investors at Veritas weren’t panicking about the price drop, and that the likelihood they’d pick up that cheap stock was strong – but not until the dumping had been completed.
Well that appears to have happened, with 1m+ in trading volume on a day with no news.
So what pushed the big jump? How about 8 million shares traded in Germany overnight?
Anyone who took the chance to pick their shares up at the $0.30 range it was sitting at for a while will be popping champagne corks today, as it touches $0.50. Personally, I grabbed some at $0.36, so the cat won’t be getting kicked tonight.
There has been no recent news at the company, other than a paid promo piece in the Financial Post a few days back that didn’t appear to move the needle at all.
But long term investors continue to view the stock as a one-year play.
I’m with them.
To listen to the podcast I recorded earlier this year with the Veritas CEO, which explains the company plans, click the play button below:
— Chris Parry
FULL DISCLOSURE: The author owns stock in Veritas, and is a consultant to the company.