CANNAINVESTOR Magazine June 2016 - Page 20

ulations than trading on the major exchanges (e.g. Nasdaq and NYSE). Institutional investors try to minimize risk as much as possible; and investing in companies that have strict listing requirements minimizes investor risk. In other words, OTC companies have trouble gaining credibility with institutional investors. Without institutional investors buying an OTC stock there is minimal shares traded and wide spreads in bid and ask prices (what you can buy and sell a stock for). For beginner investors, this means that if you buy a stock and turn right around and sell the same stock, you can lose a significant amount of your investment within seconds or it can take a long period of time to get back to breakeven. In short, OTC companies attract day-traders and toxic investors who care nothing about the companies they invest in but only care about buying a stock and selling the same stock as soon as possible to make a profit, which results in increased volatility (stock price rapidly increasing and decreasing) with no sustainable increase in stock price. Due to these recent developments, we are justified in including cannabis bio-techs at the top of our CANNAINVESTOR Magazine Top 20 Stock Picks. In addition, we feel as the states and federal government legalize cannabis, they will also implement strict cannabis testing guidelines and regulations. Let’s be honest, the state and federal government’s first responsibility is the safety of its citizens. Therefore, we are including DigiPath, Inc. (DIGP) and Pazoo, Inc. (PZOO) in our CANNAINVESTOR Magazine Top 20 Stock Picks. MassRoots Inc. (MSRT) will drop off the CANNAINVESTOR Magazine Top 20 Stock Picks and will be added to our Stocks To Watch list. In summary, we are aggressively bullish in the shortterm for cannabis bio-tech and testing labs and moderately bullish long-term for all other cannabis subsectors. CANNAINVESTOR Magazine