PAO Group Inc (OTCMKTS: PAOG) price action activity has started picking up some steam after a harrowing plunge to all-time lows. A spike in trading volume indicates the stock might have hit bottom and due for a correction higher. PAOG has all the characteristics of a bounce-back play.
PAO Group Catalysts And Price Analysis
While the stock has taken a significant hit, one cannot dispute the fact that PAO Group has positioned itself for a bright future. In the first half of the year, the company announced the acquisition of a cannabis grow and processing lab operation in Michigan. The purchase came hot on the heels of the company confirming the application for a 1500 Plant Grower Class C license. Fast forward, the company has already debuted Cannophen, an oral capsule for patents who do not want to consume or use tinctures.
Amidst the flurry of positive developments, PAO Group stock has continued to edge lower and now finds itself trying to breakout from all-time lows. While PAOG has started showing signs of bottoming out, it first needs to rise and take out the $0.01 resistance level to break the downtrend line.
About PAO Group
PAO Group is a company focused on the development and commercialization of alternative patient care treatments. The company is currently working on medical cannabis to address various conditions. Through its subsidiaries, the company is also engaged in the cultivation, processing, and transportation of premium cannabis products for use by chronic and terminal patients.
A lack of substantial press releases affirming ongoing developments as well as long-term plans might explain PAO Group underperformance in the market. Investors have continued to shun the stock on the lack of substantial updates to validate its long-term prospects.
The last piece of information came in July as PAO Group debuted Cannophen at the High Times Cannabis Cup in Michigan. The show presented an opportunity for the company to present the oral cannabis capsule to an audience of thousands of people as well as vendors. The capsule features a 1:1 blend of premium THC designed to offer an alternative delivery system so that the body can enjoy the full benefits of THC and CBD.
“The Cannabis Cup offered us a chance to showcase the effectiveness of our products to leading industry insiders. We met with many patients, as well as provisioning centers that will enable us to expand our distribution channels. We are excited to shift focus to business development throughout the state of Michigan,” explained CEO Karl Riedel.
Early this year PAO Group announced it was acquiring cannabis grow and processing lab in Michigan. The business the company was acquiring was poised to strengthen and expand its footprint in the business of growing and processing cannabis, in a bid to take advantage of strong demand for cannabis products in the state.
The acquisition included cannabis extraction as well as a distillate laboratory made up of a clientele base of grower’s, dispensaries as well as vape producers. The company was also in the process of pursuing a medical marijuana facility licensing that would allow it to purchase marijuana from other growers in a bid to come up with CBD infused products.
“The ability to deliver premium quality distillate establishes our brand as a premier processor in the category, and distillate remains the backbone of the cannabis industry through its versatility across consumer products including vape cartridges,” explained Mr. Riedel.
PAO Group has started making some ground after a harrowing plunge in the first half of the year. Price gains have coincided with an uptick in market sentiments as investors take note of the company’s flagship Cannophen products as well as its acquisition of a key cannabis growing and processing business in Michigan. Given that the stock has taken a significant beating since the start of the year, PAOG looks to be a discount entry opportunity at current levels. PAOG appears to have reached a bottom after last week’s strong price action.
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Disclosure: We have no position in PAOG and have not been compensated for this article.