Hristina Beeva

22nd Century Group, Inc. (OTCBB:XXII) Makes A Return in New Year

by Hristina Beeva January 13, 2014
While everyone was watching the pot stock boom of last week, previously active and booming tickers fell to the wayside. Now, it is time for a second look, as solid companies manage to re-emerge. 22nd Century Group, Inc. (OTCBB:XXII, XXII message board) has been preparing for success in 2014, and now there is suddenly stronger interest in its stock. XXII added more than 32% to stand at $2.39, as buying resumed to the tune of $2.95 million. XXII1301.png

XXII sank a bit in the past days, and there was enough incentive for valley buying. The company has not posted significant new developments, except for a brief mention of a "buy" rating by research firm Chardan Capital Markets. XXII1301.png

The rise at the end of the week was surprising, creating doubts whether the higher levels would survive on Monday. Still, investors' forums remember the promise that XXII would attempt uplisting in the coming months, if the price allows. And the recent slide in XXII was deemed end of year profit-taking, which may be remedied soon.

XXII is also a potential buyout target for bigger companies, as giants in the tobacco industry are interested in low-nicotine, potentially low-addiction products. Now, it is only a matter of time for XXII to achieve enough production, marketing and general popularity, in order to reap the benefit of alternative tobacco and nicotine products market.

The only problem with XXII is that volumes are relatively low, which is a hindrance for shorter-term trading and attempts at fast divesting. This may be compensated by the longer-term potential of this ticker, so it is best to estimate your time frame well, so as not to get caught in the corrections that happen now and then for this stock selection.

At the same time, electronic cigarette makers who were small and fast enough to join the legalized marijuana industry, are having a different stock story. Mcig, Inc. (OTCBB:MCIG) had two extremely robust days of buying at the end of last week, ending up at 20 cents, and again setting the question whether it would survive Monday without profit-takers shaving off a large chunk.

Vapor Corp. (OTCMKTS:VPCOD) has lessened its progress since the reverse split, sinking lower toward the $8 levels, as the company also awaits the developments of 2014 and the results of entering the European markets.

The OTC markets are a place of exuberance where pot stocks are the leaders, but we will be returning to those more solid movers. But remember that no industry or price range is an insurance against rapid corrections, so choose the size of your investment accordingly.

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