Freedom Leaf, Inc. (OTCMKTS:FRLF) is starting the week off with a bang, and we’re not entirely sure why. Of course, there are a few reasons that might explain the company’s nearly 90% jump today, but when you take into consideration that Freedom Leaf hasn’t actually announced anything new since last week, one cannot help but find today’s surge interesting.
What Happened Tuesday?
The date is January 23, and the markets are open for another 4 hours, but Las Vegas-based company Freedom Leaf, Inc. is already witnessing a boost of more than 80% today, making it one of the trending tickers of the day thus far.
The company has a market capitalization of 34.61 million, and, as of this writing, Freedom Leaf, Inc. is trading at $0.27, putting the FRLF stock up $0.13, or 87.73%.
But why? Let’s see if we can find the culprit.
What’s Been Going On?
For the most part, I feel a sense of confliction when it comes to analyzing Freedom Leafs’ stock. Why? Because for the past 5 weeks, Freedom Leaf has seen a fluctuation in its stock price, no matter the announcements the company makes, negative or positive.
If you didn’t already know, Freedom Leaf is active in the publishing sector and focuses primarily on providing advertisements in various publications involved in both the hemp and the marijuana market.
Over the course of the past five weeks, Freedom Leaf, whether the company realizes it or not, has fallen victim to a certain pattern: the company will make an announcement, and then the stock will either fall significantly or increase significantly.
For instance, on January 9, Freedom Leaf finalized the acquisition of Green Market Europe S.L., a Spanish hemp producer. Two days later, the company found itself on a list titled ‘5 of Today’s Biggest Marijuana Stock Gainers’.
Then, on January 16, Freedom Leaf disclosed that it has appointed a new CFO: Mr. Richard Groberg. One would have thought that this announcement would have benefited the company as Groberg has years of experience under his belt, but it turned out to be the opposite; the stock found itself on the ‘Biggest Marijuana Stock Losers’ of the day list, with another decline occurring a few days later on January 19.
The Takeaway
With all of that being said, I’m not surprised that the stock is growing as – if the pattern that seems to have surfaced is correct – it was time for Freedom Leaf, Inc. to see an increase as it dropped last week.
Of course, no one could have predicted a nearly 90% increase, but, the possibility of a surge this week had to be in the back of investors minds.
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