Kaloyan Gadzhev

CannaVEST Corp (OTCMKTS:CANV) Smashed through the $3 Mark

by Kaloyan Gadzhev January 16, 2015

Yesterday CannaVEST Corp (OTCMKTS:CANV) had a very active session and closed above the $3 mark for the first time since mid-November. CANV broke through shortly after 11 a.m. and even managed to close up 23.21% at $3.45 per share on approximately 535 thousand shares.

There doesn't seem to be any glaringly obvious reason for that move. The latest press release came on Jan 8 when CANV announced the test results for samples of its hemp oil. It was good news and the stock closed in the green that day, but the following drop suggests it isn't likely to be the reason for the current spike.

The same could be said about the Industrial Hemp Farming Act of 2015, which was introduced in Senate on the same day. The bill has bi-partisan support, and should it pass, industrial hemp cultivation and production would be legal nationwide.

Some people on investor forums have suggested CANV's sudden move up has to do with insider buying. They seem to base that on a Form 4 from Jan 13. This explanation would better fit the timing, since CANV closed up on the 14th too, albeit for a more moderate gain. However, investors should be certain they fully understand what the form says before making decisions.

One of the transactions took place on October 1, 2014. and the explanation below makes it clear that Mr. Mona didn't actually pay $705 thousand for the 250 thousand shares, instead "The consideration paid for the shares was services previously provided to the Issuer by Mr. Mona, valued at $705,000, as of October 1, 2014." Which also means the shares weren't bought in the open market.

Neither were the other 250 thousand shares, Mr. Mona acquired, as the transaction date is Jan 1 – not a trading day. That doesn't mean the transactions don't represent insider buying, but statements like "CANV CEO buying up shares!" might be somewhat out of place.

Whatever the reason for the surge, it should be interesting to watch. In early trading today, CANV is moving up now close to $3.75 per share.

Comments 11

1. Guest
November 30, 2015, 04:02AM

Quotes i dont understand.....says on tdameritrade that CANV is trading at .56 per share not 3.45...and this article says it broke the $3 mark yesterday but according to tdameritrade it hasnt seen $3 since february....whats going on with this??????

2. Guest
November 28, 2015, 04:40AM

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3. Guest
November 26, 2015, 11:15AM

Quotes What a pleasure to find someone who idteeifins the issues so clearly

4. Guest
November 26, 2015, 12:29AM

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5. Guest
July 29, 2015, 06:59PM

Quotes what is the cost of this service?

6. Guest
March 09, 2015, 09:24AM

Quotes For Your TRTC Info DD See This Link !

7. Guest
February 25, 2015, 03:24PM

Quotes Breaking news re major investigation:

-The Investigator
Guardian of the Green Rush



8. Guest
February 24, 2015, 09:13AM

Quotes TRTC Derek CEO setup a MJ Enterprise
by Trojan- Horse Business Strategy !

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9. Guest
January 21, 2015, 10:49PM

Quotes CANV filed an amended form 4 on Jan 20, indicating that those shares of Mona III were actually stock awards, not purchases.

10. Guest
January 16, 2015, 10:44AM

Quotes FWIW, MJNA has 4.6M shares of CannaVest it needs to sell in order to raise much-needed cash.

Just sayin'.

11. Guest
January 16, 2015, 10:39AM

Quotes The "buyer" wasn't the CEO, Michael Mona, Jr, but his son, Michael Mona, III, who is VP of Operations.

I don't understand how the Oct shares were for services, since I don't think there was anything in the 3Q/14 filing about Mona, III being owed anything by CannaVest.

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