OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) might end up being a dramatic cautionary tale for momentum investors in the cannabis patch. In fact, as this tale tells, no one should ever be a momentum “investor” in any market niche or any market context. The trick is to remain a momentum trader instead. The difference in these bearings has to do with the degree to which one is prepared to cut one’s losses if the stock fails to respond as expected.
In this case, OWCP has been a catastrophe for those who bought in during its move up through the $3/share level in February. The stock has been extremely volatile and looked to be sliding yesterday but rallied to close trading yesterday.The principal catalyst in play at this point is the company’s announcement of the appointment of Dr. Stanley Hirsch as its active chairman of the board of directors.
OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) casts itself as a company that engages in the research and development of Cannabis-based medical products. The company provides medical products for the treatment of various medical conditions and/or diseases, such as multiple myeloma, psoriasis, PTSD, and migraines; and delivery systems. It also provides consulting services to companies and governmental agencies related to international medical cannabis protocols and regulations.
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OWCP through its wholly-owned Israeli subsidiary, One Word Cannabis Ltd., conducts medical research and clinical trials to develop cannabis-based pharmaceuticals, treatments and unique delivery systems for the effective delivery and dosage of medical cannabis.
All OWC research is conducted at leading Israeli hospitals and scientific institutions, and led by internationally renowned investigators.
OWCP’s Research Division is focused on pursuing clinical trials evaluating the effectiveness of cannabinoids in the treatment of various medical conditions, while its Consulting Division is dedicated to helping governments and companies navigate complex international cannabis regulatory frameworks.
The Company is a wholly owned subsidiary of OWC Pharmaceutical Research Corp. The company was formerly known as Dynamic Applications Corp. OWC Pharmaceutical Research Corp. was founded in 2008 and is based in Petach Tikva, Israel.
As noted above, the company has been making some deep changes in response to some uneven action in the price of the stock. The most recent such move was to put Dr. Stanley Hirsch in as its active chairman of the board of directors. According to the release, Dr. Stanley Hirsch, age 59, has had extensive scientific, executive and board level experience for more than the past 25 years in private and publicly listed companies in biopharmaceutical and agricultural biotech industries, among others, including direct experience in raising capital and leading M&A activity together with multi-cultural management skills, having managed companies in Israel, Brazil, UK, China and the United States.
Mr. Mordechai Bignitz Chief Executive Officer, commented on the appointment, “I am proud and honored to have Dr. Hirsch agreeing to join OWCP and assume the role of active chairman. I have known Dr. Hirsch for many years and cooperated with him in the past. Dr. Hirsch brings with him a unique set of skills, both scientific and business, that are in the exact scope of our operations. I am sure that his contribution to our growth will be of major significance.
The chart shows just shy of -20% stripped out of shares of the stock during the trailing week. However, market participants may want to pay attention to this stock. OWCP has a track record that includes a number of dramatic bounces. What’s more, the company has registered increased average transaction volume recently, with the past month seeing 94% over the long run average.
At this time, carrying a capital value in the market of $49.96M, OWCP has a chunk ($2M) of cash on the books, which stands against about $300K in total current liabilities. One should also note that debt has been growing over recent quarters. OWCP is pulling in trailing 12-month revenues of $50K. However, the company is seeing recent declines on the top line on a sequential quarterly basis, with revenues falling at -100% as of its latest reporting period. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $OWCP stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $OWCP, either long or short, and we have not been compensated for this article.