Boston, MA 01/10/2013 (wallstreetpr) – Like most weed stocks, GreenGro Technologies, Inc. (OTCMKTS:GRNH) made the best of the industry hype, but it is now down and nobody knows if it will be rising immediately. But even if it rises, its material gain of 1541 percent since the year began raises concern over how much higher it can still rise.
First things first, GRNH has seen the biggest gain in 2014. The stock was always promising though through the close of 2013, but the Jan. 1, legal sale of pot in Colorado brought in a lot of firepower which pushed it up beyond the expectation of many equities analysts.
The stock is pushed up as volumes soared, leading to widespread gains for investors who took up the stock in the earliest opportunity. Now that a pullback is happening you may wonder whether all is lost in this stock. It is easy to answer this concern by looking at the behavior of other marijuana related stocks.
We see that since the year began, a number of pot stocks have been back and forth. This trend can be seen in stocks such as Cannabis Bioscience Inc (OTCMKTS:CBIS), Hemp, Inc. (OTCMKTS:HEMP) and Medical Marijuana Inc (OTCMKTS:MJNA) among many others. That being said, it is clear that investor confidence in weed stocks is still low enough. This means that investors rush to squeeze any profits they see in the stock and stay in the sideline for a while as they monitor the market.
It is this investor behavior that has caught up with Greengro Technologies, Inc. (OTCMKTS:GRNH), thus its fall. That this is the stocks first sessions in the red has put in widespread scrutiny and the situation may look scary. However, going by the industry trend at the moment, you can expect the stock to jump again after going through a recession phase that is normal to pot stocks under this hype situation.
Caution
That Greengro Technologies, Inc. (OTCMKTS:GRNH) still has energy to rise is not in doubt given its largely successful recent rally and the fact that investors still want to cash in on medical marijuana hype. Nonetheless, serious corrections are also in the offing once trading gets back to normal. For this reason, you need to do a lot of due diligence and risk analysis before taking a bet in GRNH.
