American OTC Stock Buy Hold or Sell Recommendation

AMMJ -  USA Stock  

USD 0.15  0.01  7.14%

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding American Cannabis is 'Strong Sell'. Macroaxis provides American Cannabis buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AMMJ positions. The advice algorithm takes into account all of American Cannabis' available fundamental, technical, and predictive indicators you will find on this site.

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The advice is provided from American Cannabis' buy-and-hold perspective. Please continue to American Cannabis Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as American and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards American Cannabis.

Execute American Cannabis Buy or Sell Advice

The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Cannabis. Macroaxis does not own or have any residual interests in American Cannabis or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Cannabis' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell American CannabisBuy American Cannabis
Strong Sell

Volatility

Out of controlDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Actively responds to the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon American Cannabis has a Mean Deviation of 3.97, Standard Deviation of 5.62 and Variance of 31.59
We provide trade advice to complement the prevailing expert consensus on American Cannabis. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure American Cannabis is not overpriced, please confirm all American Cannabis fundamentals, including its shares outstanding, net income, earnings per share, as well as the relationship between the price to sales and debt to equity . As American Cannabis appears to be a penny stock we also recommend to validate its price to earning numbers.

American Cannabis Trading Alerts and Improvement Suggestions

American Cannabis generates negative expected return over the last 90 days
American Cannabis has high historical volatility and very poor performance
American Cannabis has some characteristics of a very speculative penny stock
American Cannabis is unlikely to experience financial distress in the next 2 years
The company reported the previous year's revenue of 1.57 M. Net Loss for the year was (532.41 K) with profit before overhead, payroll, taxes, and interest of 720.68 K.
American Cannabis currently holds about 1.72 M in cash with (525.79 K) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.02.
Roughly 30.0% of the company shares are held by company insiders
Latest headline from seekingalpha.com: Is Tilray A Buy Comparison With American Peers - Seeking Alpha

American Cannabis Returns Distribution Density

The distribution of American Cannabis' historical returns is an attempt to chart the future uncertainty of American Cannabis' future price movements. The chart of the probability distribution of American Cannabis stock daily returns describes the distribution of returns around its average expected value. We use American Cannabis price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Cannabis returns is essential to provide solid investment advice for American Cannabis stock.
Mean Return-0.2Value At Risk-8
Potential Upside10.00Standard Deviation5.62
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Cannabis historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

American Cannabis Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Cannabis or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Cannabis stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.28
β
Beta against DOW1.96
σ
Overall volatility
5.16
Ir
Information ratio -0.04

American Cannabis Volatility Alert

American Cannabis exhibits very low volatility with skewness of 0.15 and kurtosis of 1.11. However, we advise investors to further study American Cannabis technical indicators to make sure all market info is available and is reliable. American Cannabis is a potential penny stock. Although American Cannabis may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in American Cannabis. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on American instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

American Cannabis Fundamentals Vs Peers

Comparing American Cannabis' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Cannabis' direct or indirect competition across all of the common fundamentals between American Cannabis and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Cannabis or determine the otc stocks which would be an excellent addition to an existing portfolio. Peer analysis of American Cannabis' fundamental indicators could also be used in its relative valuation, which is a method of valuing American Cannabis by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare American Cannabis to competition
FundamentalsAmerican CannabisPeer Average
Return On Equity(42.48) %(0.31) %
Return On Asset(25.23) %(0.14) %
Profit Margin(33.92) %(1.27) %
Operating Margin(39.75) %(5.51) %
Current Valuation15.49 M16.62 B
Shares Outstanding74.38 M571.82 M
Shares Owned by Insiders29.67 %10.09 %
Price to Earning62.93 X28.72 X
Price to Book6.59 X9.51 X
Price to Sales7.18 X11.42 X
Revenue1.57 M9.43 B
Gross Profit720.68 K27.38 B
EBITDA(610.1 K)3.9 B
Net Income(532.41 K)570.98 M
Cash and Equivalents1.72 M2.7 B
Cash per Share0.02 X5.01 X
Total Debt109.91 K5.32 B
Debt to Equity0.07 %48.70 %
Current Ratio7.14 X2.16 X
Book Value Per Share0.02 X1.93 K
Cash Flow from Operations(525.79 K)971.22 M
Earnings Per Share(0.009) X3.12 X
Number of Employees518.84 K
Beta0.15-0.15
Market Capitalization11.27 M19.03 B
Total Asset397 K29.47 B
Retained Earnings(4.5 M)9.33 B
Working Capital(162 K)1.48 B
Current Asset379 K9.34 B
Current Liabilities541 K7.9 B
Z Score45.58.72
   Sale by Ellis Smith of 25000 shares of American Cannabis [view details]

About American Cannabis Buy or Sell Advice

When is the right time to buy or sell American Cannabis? Buying financial instruments such as American OTC Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although American Cannabis investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Obamacare Repeal Theme
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Please continue to American Cannabis Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the American Cannabis information on this page should be used as a complementary analysis to other American Cannabis' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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When running American Cannabis price analysis, check to measure American Cannabis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Cannabis is operating at the current time. Most of American Cannabis' value examination focuses on studying past and present price action to predict the probability of American Cannabis' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Cannabis' price. Additionally, you may evaluate how the addition of American Cannabis to your portfolios can decrease your overall portfolio volatility.
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The market value of American Cannabis is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Cannabis' value that differs from its market value or its book value, called intrinsic value, which is American Cannabis' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Cannabis' market value can be influenced by many factors that don't directly affect American Cannabis underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Cannabis' value and its price as these two are different measures arrived at by different means. Investors typically determine American Cannabis value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Cannabis' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.