If investors are interested in high-reward stocks, then they should raise their risk bar and screen for falling knives.
Since falling knives are stocks that have declined more than 80% in the last 12 months of trading, they bear a high potential to outperform either their industry or the overall market if backed by the right tailwind.
To increase the odds of finding a growing company, investors should screen for U.S. cannabis stocks as the industry is crawling with companies operating in several rapidly-evolving fields. One of these fields is CBD infused beverage market, where, Zenith Global, a leading global food and drink consulting firm, projected that the US market for cannabis, CBD and Hemp infused drinks will grow to over $1.4 Billion by 2024, an almost fifteen times (15x) increase from 2018 sales of just $89 million.
Shares of American Premium Water Corporation (OTC: HIPH) closed at $0.0088 on Friday following a 90% decline over the past year. The closing price was below the 200-day simple moving average line. The 52-week price range is $0.0088 to $0.132. The 14-day relative strength index of 17.5 suggests the stock is extremely oversold at these levels.
The company has engaged a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance related to substantial short selling of its stock. Regulation SHO requires bona-fide market-making activities to include making purchases and sales in roughly comparable amounts.
The Securities and Exchange Commission has stated that bona-fide market-making DOES NOT include activity that is related to speculative selling strategies for investment purposes of the broker-dealer and is disproportionate to the usual market making patterns or practices of the broker-dealer in that security. Likewise, where a market maker posts continually at or near the best offer, but does not also post at or near the best bid, the market maker’s activities do not qualify as bona-fide market making. Moreover, a market maker that continually executes short sales away from its posted quotes is not considered to be engaged in bona-fide market making.
The Company has been monitoring trading activity between July 22nd and August 8th, 2019, and has noticed a pattern of irregularities in trading activity, primarily by one market maker which was facilitated by two others that could be defined as not a bona-fide market making. This analysis compared trading data to internal reports provided to the Company by the Deposit Trust Clearing Corporation (“DTCC). The data showed that there were a number of irregularities that have warranted further investigation, which necessitated the Company’s engagement of the compliance firm to generate proprietary trading data.
The Company will present these findings to the regulators if the advanced data affirms its initial assessment. At that time, the Company will determine what appropriate legal options are warranted based on this advanced analyzation of the data.
Ludlow Research Updates Opinion on American Premium Water Corporation (OTC: HIPH) – Short Term Price Target of $0.05-$0.06 Based on Strong Global Demand for LALPINA CBD, reflecting a nearly 800% upside from the closing price on Friday. A recent expansion should help the company increase its revenues when global cannabis legalization spurs cannabis prices.