IM Cannabis Corp. (CNSX: IMCC), has been seeing heavy swings in the after-market session today, leaving market participants guessing direction. The substantial volatility indicates the level of interest the stock has garnered throughout the week, especially with yesterday’s session. However, unlike other growing cannabis stocks today, IMCC swift rise did precede a hard tumble, putting gain at merely 1.6%. Market participants closely watch the IMCC trajectory, riding a persistent bullish trend in 2020, and a bearish slide in 2021. Bulls in the market, betting on an IMCC long position are optimistic of the view that a reversal is underway.
Date Announced for IMCC Earnings Release
One reason as to why the stock is experiencing a surge may link to Wednesday’s announcement by IMCC management. The company’s 2021 annual and fourth-quarter earnings will publicize on March 30, 2022. This in part explains the rush seen in the market, to beat a potential growth surge, actualizing on March 30. This sentiment clearly rests on the assumption of IMCC being undervalued. This assumption is substantiated by a consistent quarterly revenue growth rise seen in the last 11 quarters.
IMCC’s Strategic Acquisitions in Israel
The growing company, with profitable fundamentals, optimistically proves to be a value-creator for shareholders. Last week, the company announced three major strategic acquisitions of Israeli-based companies. The move is one denoting significant expansion for IMCC, whilst delivering it a more robust control over the entirety of its supply chain. The acquisition is likely to result in synergistic benefits, higher quality products, and a substantial degree of operational efficiency. Since the announcement last week, IMCC has reversed a bullish sliding trajectory and has been steadily rising ever since.
Potential US Federal Legalization of Marijuana
Another possible breakthrough for IMCC is a congress vote next week addressing the federal legalization of marijuana. Even though the IMCC scope is not inclusive of the US, a successful vote would lead to a breakthrough and a possible price explosion. The move would clearly signal immense opportunity for the company to a dynamically monumental market. It would also trigger off, in a domino-style effect, a global discussion on marijuana legalization, further enhancing industry-wide interest.
IMCC has been seeing erratic, albeit substantial growth swings in today’s after-market session. The announcement of its earnings release date has spurred the market into action, with traders rushing to beat a potential growth spurt. Recent major acquisitions in Israel, along with the potential federal legalization of marijuana, have further contributed to this market hype.