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(NEW YORK)–CBD infused beverage stocks have seen their prices spiral down the drain since early October, but could now be ready for a potential short covering rally as bargain hunters prepare to step back in.
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CBD infused stocks, along with the whole cannabis sector, saw an epic rally in September and October as investors looked to take positions before Canada legalization. But in classic ‘buy on the rumor, sell of the news’ these stocks took a hit after legalization on Oct. 20th, with small cap CBD beverage plays taking the worst hit of them all.
But could it be finally be time to step back in to these stocks?
Correction in CBD Beverage Sector
– New Age Beverages (NBEV) saw a high of around $10.00 in early October, but has now retraced to just below $5.00
– India Globalization Capital (IGC) hit a screaming high of $14 as one of the most followed play among traders, but has since traded down dramatically to now under $3.00
– Puration Inc (PURA) hit a high of $0.25 in early October, but now trades just around $0.12
– American Premium Water (HIPH) hit a high of $0.13 in early October, and now trades at $0.08
– AppSwarm (SWRM) hit a high just over $0.02, but has only retraced back to $0.015 as stock did not have the extreme premium built in like ones mentioned above
– ChineseInvestors (CIIX) saw a high of around $1.25 in early October, but has now retraced back to around $0.75
It is never easy to call an exact bottom after a sector has had such a strong run, but with many of these stocks retracing back 50% off their highs, and several now testing their 50-day moving averages, the stage may be set for possible short covering rally as some investors may look to step back doing some bargain hunting.
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