Investors Are Getting "High" On OTC Stocks In 2014

Tyler Durden's picture


2014 has been an unusual year so far. The worst start for stocks in decades stunned many but has been saved by the best rally in a few years' asset-gatherers proclaim it was the dip to be bought but volume never came back to buy that dip (despite its exuberant surge). So where is all the volume in 2014? Nanex has the answer... investors have been geting 'high' by weeding-out OTC stocks...


Via Nanex,

Where The Action Went...

1. Comparing shares traded per day between OTC stocks, NYSE listed stocks and Nasdaq Global Market stocks.
Trading volume in OTC has exploded (green line).

2. Comparing trade executions per day between OTC stocks, NYSE listed stocks and Nasdaq Global Market stocks.
This chart takes into account that the much lower priced OTC stocks will have higher volume per trade. Trading in OTC stocks is exploding.

3. Where is the increased trading activity coming from in OTC stocks?

So the real volume; the real action has been in Medical Marijuana OTC stocks... speculative bubble? not according to Janet Yellen...

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Wed, 02/12/2014 - 16:02 | 4429197 fuu
fuu's picture

Billions waiting to be made on legal weed.

Wed, 02/12/2014 - 16:21 | 4429290 Say What Again
Say What Again's picture

Does this mean that the recent rally in the major averages is on significantly lower volume (to compensate for the higher volume in the OTC crap)?

Wed, 02/12/2014 - 16:24 | 4429303 fonzannoon
fonzannoon's picture

we have had a 5 year rally on no volume. No reason to expect it now.

Wed, 02/12/2014 - 16:46 | 4429428 wallstreetapost...
wallstreetaposteriori's picture

Pot stocks are going to be hotter than bitcoin in 2014.   Think about how profitable the entire value chain will be once more and more states legalize.

Wed, 02/12/2014 - 17:00 | 4429543 wallstreetapost...
wallstreetaposteriori's picture

If the stock market and economy collapses and the fed has no more credability, does that mean the federal government will legalize pot to put all unemployed to work (who are already smoking and selling it anyway) and tax it unlike anything before... could  be the next big thing.

Wed, 02/12/2014 - 16:33 | 4429352 666
666's picture

They're all penny stocks. Maybe that's all weed users can afford.

Wed, 02/12/2014 - 16:35 | 4429363 cossack55
cossack55's picture

Why waste money on stocks when you can just "load that ol' torpedo".

Wed, 02/12/2014 - 18:12 | 4429874 AgentOrange
AgentOrange's picture

I bought a few hundred dollars worth of MJNA and HEMP, quite frankly it was based on speculation. They are penny stocks, but imagine if they become dollar stocks, I will be able to buy a really nice bong and lots of weed. Up 60% so far

Wed, 02/12/2014 - 19:14 | 4430154 Remington IV
Remington IV's picture

Holy .... smokes

Wed, 02/12/2014 - 16:04 | 4429209 Occident Mortal
Occident Mortal's picture

Having laundered their criminal gains via Bitcoin... Drug dealers are going legit?

Wed, 02/12/2014 - 16:07 | 4429218 knicks3005
knicks3005's picture

If your not invested in weed, your're going to miss the high train to the promise land.

Wed, 02/12/2014 - 22:27 | 4430820 StychoKiller
StychoKiller's picture

Given yer avatar, I just gotta laugh! :>D

Wed, 02/12/2014 - 16:12 | 4429228 Dollarmedes
Dollarmedes's picture

I always thought the more unscrupulous companies would hook their customers if they could. If marijuana turns out to be as innocuous as proponents say, this may not be the best investment strategy.

Wed, 02/12/2014 - 16:17 | 4429276 Skateboarder
Skateboarder's picture

It's not just the bud - the whole plant is very useful.

Wed, 02/12/2014 - 16:21 | 4429295 tip e. canoe
tip e. canoe's picture

even a plant that does not produce any buds

Wed, 02/12/2014 - 16:10 | 4429231 youngman
youngman's picture

If you are playing in the might as well go to the fun Casino

Wed, 02/12/2014 - 16:13 | 4429232 ShrNfr
ShrNfr's picture

The market is definately going to pot.

Wed, 02/12/2014 - 16:16 | 4429248 Sudden Debt
Sudden Debt's picture

untill the government starts issuing licences to the big corps and those little weeders get skinned.

Big pharma's will take the cookies for sure. I bet they're already lobbying for it and building the greenhouses to do it.
There's just to manny chemicals on the current weed to boost the high.

I smoked when I was a student and today's stuff is way more powerfull than what we grew back in the days.

Wed, 02/12/2014 - 16:19 | 4429272 Dr. Engali
Dr. Engali's picture

Janet doesn't see any bubbles because she's never used a bong, she's always been a roll your own type of guy.

Wed, 02/12/2014 - 16:26 | 4429329 DOGGONE
Wed, 02/12/2014 - 16:21 | 4429299 Its the Vatican...
Its the Vatican Stupid's picture

Actually, FITX is medicinal marijuana, too. 

Wed, 02/12/2014 - 16:48 | 4429461 Pesky Labrador
Pesky Labrador's picture

I disagree

Wed, 02/12/2014 - 17:07 | 4429591 Its the Vatican...
Its the Vatican Stupid's picture

Then you, sir, are a dumb motherfucker who does not even rate a link to the due diligence.

Wed, 02/12/2014 - 16:24 | 4429315 jimijon
jimijon's picture

I have a few more in my 420 Index. It has been growing 20% per week since Jan!

Wed, 02/12/2014 - 16:49 | 4429430 Pesky Labrador
Pesky Labrador's picture

I believe this is the majority of the 420 stocks.


Latteno Food Corp, LATF

Dewmar International, DEWM

Tranzbyte Corp, ERBB

Easton Pharmaceuticals, EAPH


Cannabis Science Inc, CBIS

Nuvilex Inc, NVLX

Medical Marijuana Inc, MJNA

mCig Inc, MCIG

Growlife Inc, PHOT

GreenGro Technologies, GRNH

Terra Tech Corp, TRTC

Plandai Biotechnology, PLPL


Fusion Pharm Inc, FSPM



Medbox Inc, MDBX

CannaVEST Corp, CANV

Wed, 02/12/2014 - 16:53 | 4429497 wallstreetapost...
wallstreetaposteriori's picture

I might just buy all of them since they are sooooo cheap.  One of these ponies has to ride with legalization. 

Wed, 02/12/2014 - 20:37 | 4430427 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Absolutely if you have large amount of money to invest one of them should provide 100% return fairly quickly. It is definately going to be a growth industry since the demand is there but the legal portion of the industry is an emerging market.

Wed, 02/12/2014 - 16:42 | 4429419 FuzzyDunlop21
FuzzyDunlop21's picture


Wed, 02/12/2014 - 19:26 | 4430201 disabledvet
disabledvet's picture

you need a dip first...probably in more ways than one actually.

that Nasdaq can go to 1000.

Wed, 02/12/2014 - 16:53 | 4429499 gdiamond22
gdiamond22's picture

The higher the stock market rises on fed-driven liquidity, the harder it will fall on reality.

Wed, 02/12/2014 - 19:08 | 4430115 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

A newly legal industry will experience explosive growth initially. No surprises here that the smart money is getting high on OTC.

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