MYM Nutraceuticals Inc. (OTCQB:MYMMF) (TSXV:MYM), a company that focuses on producing and selling medicinal marijuana, has seen its stock increase to $3.33 at the time of writing, which is up $0.58 (or 21%) from yesterday’s close of $2.75.
The general consensus on the stock currently puts it as “Buy”, and MYM Nutraceuticals has been listed as Buy for some time now, which may explain why its Relative Strength Index (RSI) is showing that the stock may currently be overbought and therefore possibly overvalued. MYM Nutraceuticals has an RSI of 82.07 for its 14-day average, 89.40 for its 7-day, and 98.83 for its 3-day (the RSI scaled goes from 0-100, with the 30-70 range being normal, the 0-29 range indicating a stock is likely undersold, and the 71-100 range indicating that the stock may be overbought). The incredibly high 3-day RSI is the most concerning, as it is showing that despite the stock being up now, that increase may not last long if the stock really is overvalued like the RSI is indicating.
The stock is showing quite a strong trend, however. Its average directional index (ADX) is sitting at 55.47. The ADX also ranges from 0-100, with 0-25 indicating an absent or weak trend, 25-50 showing a strong trend, 50-75 indicating a very strong trend, and 75-100 showing an extremely strong trend. ADX alone doesn’t indicate the direction the trend is moving, though, so a strong trend may not always be a good thing if the trend is going down. MYM Nutraceuticals, however, is trending upwards at the moment, judging from the movement of its stock today.
A good thing to note is that the stock’s volatility (the fluctuations of a stock) is relatively low, at a 0.22 14-day ATR (Average True Range). The lower the ATR value, the lower the stock’s volatility, meaning that MYM Nutraceuticals has been moving at a relatively steady pace and isn’t dramatically moving up and down constantly. Again, however, ATR doesn’t show price direction, just how much a stock is moving at any given time.
What could be causing the current growth in MYM Nutraceuticals’ stock? There’s no definitive reason yet, but several days ago, on December 15, the company announced that it had submitted the Confirmation of Readiness for a License under the Access to Cannabis for Medical Purposes Regulations (ACMPR) to Health Canada for its Sublime production facility in Quebec. What does this mean? It means that if MYM Nutraceuticals gets this license, it will be able to manufacture its branded medicinal THC and CBD products.
That could be a reason behind the company’s recent stock increase. But the license hasn’t been granted yet, so that means MYM Nutraceuticals’ stock level is going to be heavily reliant on the result of its submission to Health Canada. Being granted the license could mean another stock increase is in the company’s future. If it doesn’t get the license, however, its stock may become less valuable, because it will mean that MYM Nutraceuticals won’t be able to profit from the $27 million in sales that is estimated to be a result from it being able to manufacture its own products. I’ll be keeping an eye out to see what happens.
Featured Image: twitter
