This afternoon the Federal Reserve is going to announce a policy decision and a lot of stock market traders are happy about that. There is hope of more easy money policies from the Fed that can continue to help the stock market go higher. The S&P 500 is up this morning with this backdrop and there is a lot of action in the world of small cap stocks. On the US OTC exchange shares of Diego Pellicer Worldwide Inc. (OTCMKTS: DPWW) are in fact soaring up over 67% going into the noon hour. Take a look at the chart.
Diego Pellicer Worldwide Inc. (OTCMKTS: DPWW) is a small cap stock with a market cap of less than $1.4 million. The company sells its own brand of cannabis and is a retail development company. It plans to buy and open up its own brand of stores. However, last year it made a gross profit of only $457,000 and generated a loss of over $2.5 million. In this economy this can create worries about solvency. But news by the company today helped put much of these worries away as it issued a press release announcing that it was converting its debt to equity and working capital.
It announced that it “it has executed an agreement to convert debt owed to DPWW from its Colorado licensee’s Broadway dispensary into $300,000 cash and 15.13 percent equity in the newly remodeled dispensary. As equity owners, DPWW joins an investment group that includes Cookies, a California-based cannabis and lifestyle brand. This latest move delivers on DPWW’s evolved business model including direct ownership in cannabis operations.” Cannabis stocks have been a red hot sector in the small cap space and this news and stock action is driving a lot of interest today on Twitter.
17 weeks into the challenge bagged the biggest win to start the morning. $DPWW missed the initial spike, when the pr hit took 80k @ .0135 out @.0177 $320 31% gain. Preparation met the opportunity!! PUMPED! Thank you @timothysykes @sttbreakingnews @StocksToTrade @profitly pic.twitter.com/Oel8uznu36— Igor Coelho (@igorcoelhoGT) September 16, 2020
I do not have a position in this stock and neither does Mike Swanson, the head editor of this website. He is a small cap trader and his top small cap stock for this month is in an exciting situation. You can find out about it and get all of his morning trading alerts by getting on this free email list. To join it click here to subscribe.