Rocky Mountain High Brands (RMHB) - Sometimes it doesn't pay to be a cynic....

One thing I've learned over the years is that cynics are often right.  I've found those who prefer to see the glass as being half empty, that they're usually more intelligent than those who see nothing but rainbows and unicorns. 

Usually, but not always.  

Sometimes, particularly with penny stocks, it pays to see the upside potential, to look beyond past failures and to latch onto an idea or a concept.  When it comes to investments, penny stocks will often attract the rainbow and unicorn crowd, and sometimes they are the ones who are right.  

Do note, my qualification for determining right and wrong relates specifically to a stock's PPS.  If someone thinks a company is a bad investment and the PPS drops, then they were right.  If however they think a company is a bad investment and the PPS climbs, then they were wrong...and there can be times when the cynics are spectacularly wrong.

I first wrote about RMHB on October 11th after taking out a long position the day before.  Judging from what the PPS has done I made the right choice.  Here's a link to that blog posting:  

Hemp Infused Beverages - An intriguing idea for Cannabis players (RMHB)

And here's what the 1 month chart shows.  

Not a bad climb, from just over 3 cents when I took out my position, to up near 6 cents as of the most recent closing price.  In percentage terms its hard to argue with a climb of nearly 100% in a little more than 2 weeks of trading.  And I think there is the potential for even more upside, a lot more.

That's not to say its a slam dunk, there's no such thing as a sure fire winner.  It doesn't matter whether you're dealing with a dividend paying NYSE listed stock, a high flying Biotech on the Nasdaq, and not with an OTC listed penny stock, even if its fully reporting like RMHB.  In my view this is a stock that is only suitable for those using "risk capital", that is to say money that one can afford to lose.  

So why do I think RMHB has significant upside potential?  

Ultimately stocks trade on supply and demand.  There are always buyers and sellers, but if more people are buying than selling then the PPS will climb.  There are always manipulative games that can be played in my opinion, but basic market dynamics 101 will win out in the end. 

A month or two back one of my readers sent me an email suggesting I look into Cannabis stocks, and I did.  What I found were a lot of speculative stocks that had already climbed several hundred percent, sometimes 1,000 percent and more.  And the biggest percentage gainers fell into that category called penny stocks.  When I came across Rocky Mountain High Brands at Investors Hangout, (where I participate with the user ID growacet) I noticed that it hadn't yet made those type of gains.  And the prospect of Hemp Infused energy drinks was more than a little intriguing.

And the fact that they had just graduated from the non-reporting Pink Sheet Gray Market to the fully reporting OTCQB was a big plus for me.  I will not touch a non-reporting Pink Stock.  

I quickly saw the potential for Rocky Mountain to attract the attention of investors.  Their products are being distributed and can also be purchased at Amazon.  The company is working at creating brand awareness and already has a YouTube video available, 

How high could RMHB go?  I don't have an answer to that question, I'll be watching social media and keeping an eye on the trading for signs of irrational exuberance, but I don't see evidence of that yet. With that being said a market capitalization of $50 or even $100 million wouldn't shock me. Penny stocks trade on emotion a lot of the time and I think we could see days of 50 million and more in volume coming.  

Good luck.