Hristina Beeva

22nd Century Group, Inc. (OTCBB:XXII) Seeks Direction

by Hristina Beeva January 21, 2014
After a week of ups and downs, 22nd Century Group, Inc. (OTCBB:XXII, XXII message board) will have to choose a direction. Last Friday, ahead of the long weekend, XXII slid tentatively by about 3.5% to stand at $2.22, on subdued selling volumes of $402,000. So far, buying far outstrips the selling for this company, which is seen as having amazing longer-term potential, some attraction as a buyout target and plans to significantly improve its business in 2014. XXII2002.png

So far, the latest and potentially most influential press release for XXII came from Seeking Alpha, which once again spoke favorably of the company. The article from last week did not have an immediate and exuberant effect, but the next few days will show if XXII is ready for another trend. VPCOD2002.png

XXII beat a retreat during the hottest weeks of the marijuana stock boom. But before that, this ticker and other producers of alternative tobacco and nicotine products were high-fliers of the OTC market. XXII was attractive for owning and already farming its modified tobacco varieties, engineered either for low harmful substances, or as biomass-producing plants.

Despite the longer-term outlook, XXII is not without its setbacks, especially following the days of extreme exuberance in December. As with other OTC stocks, the end of the year arrived with some profit-taking. Now, XXII will have to show its success with investors and sales, to warrant the rise. A new mention in emails, PR or analytical texts is to be expected, though XXII so far has not taken up an aggressive and concerted approach to promoting itself.

An alternative exposure to the sector for light tobacco products is Vapor, Corp. (OTCMKTS:VPCO), which recently went through a reverse-split to prepare for potentially groundbreaking 2014. VPCO, however, did not manage to hold on to the peak post-split price, and slid down toward the $8 levels, where now it has been drifting for a few days.

Compare those movements to mCig, Inc. (OTCBB:MCIG), which appropriated the electronic cigarette technology for a mode of delivery of medical and recreational cannabis. MCIG went for a smooth upward trend, growing three times from 7 to 21 cents, and with enough momentum to continue the run into the new week.

If you are considering to get onto the XXII bandwagon, keep in mind that the ticker has lost more than a fifth of its value in a short time. Choose well the time frame of your investment, and avoid pouring in unsustainable sums. While XXII is preparing for a successful year, time will show if the stock is responsive to the optimism or if it would move to a logic of its own.

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