Back in October 2018, MedMen stock was at its peak selling for just over $9 CAD a share. The stock gained 60% in a matter of days making MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) one of the best pot stocks to buy at the time. However, the price dropped just as quickly as it rose.
MedMen has had a hard time since, climbing the stock ladder shakily.
MedMen Stock
Since those glory days, MedMen stock has dropped a massive 53%. It is also one of the few cannabis companies that hasn't experienced exponential growth in 2019. A sector-wide slump occurred in October, and we could attest MedMen's decline to that. But where its competitors have recovered (and then some), MedMen simply hasn't.
This type of volatility is not for the faint hearted and some investors will have already thrown in the towel here.
Stock Needs a Boost
The US-based, Canadian company has established itself as a premium cannabis retailer; crafting its shops and marketing wares to the highest standards. As a vertically integrated organization, MedMen Enterprises controls all of its supply chains, from upstream production down to extraction, branding, and distribution.
But as suggested, MedMen stock is in need of a boost. As analyst Bill Alpert of Barrons puts it:
"MedMen has the industry’s prettiest stores and the ugliest stock."
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Winning Media Posts
MedMen stock did get a brief hint of redemption at the end of February amid a campaign run by Winning Media. But unfortunately, that campaign is marred with controversy.
MedMen Enterprises hired an investor-relations firm called Winning Media LLC to create awareness of the company's business and shares. It would do this through ads on Google and Yahoo Finance, as well as an article published on a website called MarijuanaStox.
However, the OTC had an issue with "certain promotional activity concerning MedMen securities.” Upon investigation, Winning Media's article was said to "encourage investors to purchase the stock of the Company.”
The promotional campaign has since ceased, and MedMen has stated that it didn't approve of “any potentially exaggerated or misleading statements contained in the materials.”
The company maintains that the MedMen stock boost came from investor excitement over its upcoming earnings announcement and not the media campaign.
Who really knows? What we do know is that at $3.77 CAD on the CSE, MedMen stock is up almost 4% at the time of writing.
More of these gains and MedMen might regain its crown. Do you think there is potential ahead?
Feature Image: Canva
