American Cannabis Company Inc (OTCMKTS:AMMJ) Smoking Hot

American Cannabis (OTCMKTS:AMMJ) has backed off after hitting its all-time high of just over $1 with a recent pullback of 25%. This may represent a buying opportunity for both those seeking a short-term trade or those looking for an entry-point to establish a long-term position. AMMJ came onto the market two years ago through a reverse merger, but it's only been recently that we’ve seen the stock really heat up. It has traded up from $0.10 at the beginning of September to its all-time high of just over $1 last week.AMMJ offers comprehensive consulting, management, and product solutions for the cannabis Industry. It’s poised to benefit from the upcoming marijuana legislation in the US and Canada. Based in Denver, Colorado, AMMJ aims to meet the needs of the regulated cannabis industry. It provides end-to-end consulting and ancillary products for the medical, adult use and low-THC regulated cannabis markets both nationally and internationally.Utilizing operating procedures developed by AMMJ, one of its Canadian-based clients secured approval for their medical cannabis business license from Health Canada. At the end of last week, it announced that it had secured a new design and consulting contract for the purpose of creating a cannabis 'Licensed Producer' facility within the Atlantic provinces. The Canadian Prime Minister, Justin Trudeau, intends on passing legislation to legalize recreational adult use by 2017.This multi-phase project will begin with the construction of an indoor facility. Operations related to this project will commence with the cultivation of an alternative crop, and then transition to cannabis production as soon as operational licensing is secured. Future plans call for the creation of green houses and further indoor expansion.

"The Canadian market is experiencing tremendous growth and we are excited to be working with a client who is positioned to excel within that market. They have a strong corporate strategy and a significant track record of success within other business sectors both in Canada as well as internationally. ACC's Geoponic Methodology featuring SoHum living Soils™ will serve as the foundation of success in the Canadian cannabis market, and such a form of cultivation was an ideal fit for our client," stated Corey Hollister, president and CEO.

In a recently released analysis of the industry, Cowen & Co. stated that the present market is worth $6 billion. Over 32 million adults have admitted to smoking marijuana and there are 8 million daily users. It’s expected that legal sales of marijuana represent a $50 billion market which represents a year-over-year compound annual growth rate of 25% over the next decade.On November 8^th, 9 states with 30% of the United States population will be voting on regulating the sale of cannabis for medicinal or recreational use. The voters of Nevada are going to cast their ballots in the upcoming election on the Nevada Marijuana Legalization Initiative, also known as Question 2. In California voters will decide upon on Proposition 64 to make adult recreational use legal. California represents the 6^th largest economy in the world and Canada represents the 10^th.AMMJ removed some negative conversion features from its recent convertible note, with a floor installed. On October 21^st AMMJ filed the registration statement in connection the fixed funding equity commitment of up to $5mm from Tangiers Global, LLC.On the quarterly report (Form 10-Q) ending June 30^th, the balance sheet reflects that it had $505K in current assets, including $229K in cash and $67K in inventory. They lost $85K on $444K in revenues. Total assets were reported as $523K and Total Liabilities are $400K. Consequently, the Equity (Assets less Liabilities) is $123K.AMMJ has a market valuation of a $40 million. Fundamentally, we’ve seen revenues steadily increasing. It's been trading over 1mm shares a day recently. As a result of this 25% dip, with the election around the corner, this may be an opportune time to establish a position. We’ll keep you posted about when you might consider taking some profits off the table. We will be updating our subscribers as soon as we know more. For the latest updates on AMMJ, sign up below!Disclosure: We have no position in AMMJ and have not been compensated for this article.