Hey, I’m as much a fan of folks making ‘fuck you’ cash as the next guy, but there comes a point where it has to be based on something with merit.
International Cannabis Corporation (ICC.V), as I pointed out three days ago, is not such a company.
Granted, folks made bank on the stock in the opening days since its public debut. And the market was happy to dive into something with legs, as it went up and up and up, hitting a market cap of nigh $150 million in days.
The problem came with the next morning, when the one doing the boning had to look the one being boned in the eye, offer them coffee, and begin the walk of shame back downwards.
ICC has been crushed over the last few days. From a momentary high of $1.76, it ended Thursday at $1.50, Friday at $1.43, and then caromed downwards to $1.25 at the close on Monday, and $1.08 today.
1/3 shaved off the share price in two days is a big hit. That the drop came without news indicates the bubble just plain deflated.
Admittedly, a lot of weed stocks dropped Tuesday, but few to this level, and few more deservedly.
ICC’s deal is, it has a license to grow and sell weed in recreational Uruguay. It’s grow costs are cheap, some $0.68 per gram. But there’s a cap on retail pricing that will see the company making way lower margin than is seen in North America, and the population of Uruguay sits at a paltry 3 million people, which I’m pretty sure I could get to a barbecue if the beer was free.
Will ICC make money? I’ve worked with companies exploring the Uruguay space before, and I say yes, it will. But will it be worth the $100 million currently pegged as the ICC market cap?
— Chris Parry
FULL DISCLOSURE: I don’t own any of this. No. No. No. No. No. Hell no. No. Mm-mm. No.