This has been a sloppy morning for the US stock market as the market averages gapped up on the open only to swing into the red. The action can be called lackluster and dull. But that is not the case for shares of Medmen Enterprises Inc (OTCMKTS: MMNFF), which are up over 31% in morning action to be one of the top gainers on not only the US OTC, but on all US stock exchanges. The stock has done over 24 million shares of trading volume on a trading float of 411 million so far today to be one of the most actively trades stocks on the US OTC. As you can see the rise represents a breakout from a very long drawn out stock base.
What is behind the price rise?
First Medmen Enterprises is involved in the cannabis industry, which has attracted the attention of stock traders for years. The company operates in California, Nevada, Arizona, Florida, Illinois, New York, and Massachusetts with 29 retail stores and 6 cultivation facilities. In its last quarterly earnings report it reported revenue of $35 million. The stock has a market cap now close to $500 million, so it isn’t exactly a “value” stock, but it is one that is exciting the masses.
On Monday the company issues a press release stating that it was hiring “Moelis & Company LLC as its financial advisor to assist the Company in analyzing various strategic alternatives to position the Company for future success and to maximize stakeholder value.” This is helping to fuel rumors on social media and Twitter in regards to what this action may mean or could lead to.
I'm definitely bullish on weed plays. Just loving $MMNFF today.— Mr_Philosopher (@MrPhilosopher18) February 5, 2021
WEED BABY CANOPY GROWTH FURTHER ACCELERATING U.S. GROWTH STRATEGY, EXPECTS SIGNIFICANT CANNABIS REFORM UNDER CURRENT ADMINISTRATION— Zack Morris (@MrZackMorris) February 9, 2021
I have no position in this stock and am not trading it. Neither is Mike Swanson, the head editor of this website. Right now he is focused on his top stock pick for this month. You can get his free morning stock market update with trade ideas by clicking here.