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March 13, 2024

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Matica Enterprises (MMJ.C) on a good old fashioned run – up 180% in a week

Last week, I put out a guest post at Stockhouse about a company called Global Cannabis Applications (APP.C), talking about how it was one of the cheaper weed plays around.

In that piece, I mentioned another cheap weed play in Matica Enterprises (MMJ.C). Almost as soon as the story went out, Matica ceased to be cheap, rising from a perennial $0.05 to $0.065 that day, then $0.10 two days later, and as high as $0.145 today, bringing a 180% jump in less than a week.

Why the run? Hey, I like to think we loosened the lid, but it wasn’t our blessing that got this thing moving, especially with the trading volume that is being seen today. There’s been no news to fuel the fire either. This is just a case of the market hitting perpetual motion.

A couple of guys jump on early and finally break through the 5c resistance barrier, the market sees MMJ come alive, so it jumps on the back of that run with more people, which draws the attention of more people as the stock rises, which brings more people…

To put this into perspective, the average trading volume of Matica stock according to Google Finance has been 73k shares a day, or about $3650 worth of stock.

The volume today? 27 million shares traded (at the time of writing), or about $3.2 million in value, good for a 28% lift on the day.

The question at this point isn’t why Matica is running, it’s where will the run come to its natural conclusion, and where will it find a sensible base?

In conversations with CEO Boris Ziger, he’s told me he doesn’t want a massive stock run because, “that just gets the exchange asking questions you don’t have answers to,” reasoning that he’d much prefer to have a slow build up that gets his stock to where he honestly believes it should be.

Certainly he didn’t expect this run to happen, as is evidenced by a $1 million private placement he’s just held at $0.05 per share, with a full $0.10 warrant. That offering was closed Friday as the stock went on a tear.

Proceeds from the offering were stated to be for build out of the company’s Dorval, Quebec RoyalMax Biotechnology cannabis grow facility, the license for which is currently at the application review stage.

Ziger talked to the Equity.Guru livestream several weeks ago about his plans.

Watch live video from EquityDotGuru on www.twitch.tv

— Chris Parry

FULL DISCLOSURE: Matica has previously been a consulting client of the author.

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