General Cannabis Corp (OTCMKTS:CANN) is a former major high-flyer in the cannabis patch that could be an interesting turnaround play here as the space catches some new momentum to close out the year. The stock found key double-bottom support, or so it would appear, in late October and early November at a check of support near the $1/share level. We have seen nearly 50% upside since that point for this small float player. That momentum was recently fomented by the company’s announcement of its financial results for the quarter ended September 30, 2017.

According to the release, for the three months ended September 30, 2017, “we reported our highest quarterly revenues on record of approximately $980,000, representing an increase of 21% in total revenues when compared to the three months ended September 30, 2016.  Total revenues for the nine months ended September 30, 2017, increased 15% when compared to the nine months ended September 30, 2016.”

General Cannabis Corp (OTCMKTS:CANN) trumpets itself as a company that provides services to the regulated cannabis industry in the United States. The company engages in the acquisition and leasing of cultivation space and related facilities to licensed marijuana growers and dispensary owners; and provision of security services, including on-site professionals, video surveillance, and cash transport to licensed cannabis cultivators and retail shops.

CANN also designs, distributes, and sells apparel featuring graphic designs; and offers consulting services to the cannabis industry that comprise obtaining licenses, compliance, cultivation, logistical support, facility design, and building services. In addition, General Cannabis Corporation provides shared office space, networking, and event services; and leases cultivation equipment and facilities.

According to company materials, “General Cannabis Corporation is the comprehensive resource for the highest quality service providers available to the regulated Cannabis Industry. We are a trusted partner to the cultivation, production and retail side of the cannabis business. We do this through a combination of strong operating divisions such as real estate, consulting, security, financing and the distribution of important infrastructure products to grow facilities and dispensaries. As a synergistic holding company, our subsidiaries are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed.”

Find out when $CANN reaches critical levels. Subscribe to Right Now by entering your Email in the box below.

“Next Big Crop continues to generate record revenues in 2017,” said Robert Frichtel, Chief Executive Officer of General Cannabis. “With the expanded legalization of medical and recreational cannabis in numerous states, Next Big Crop’s services are in high demand to assist companies submitting applications to acquire licenses, and to provide operational consulting and products.”

“We remain focused on managing discretionary spending throughout the quarter and enter the end of the year poised for growth,” Frichtel added.  “We continue to spend on infrastructure and people that will drive future profitability.  We are committed to building and expanding the best platform in the regulated cannabis industry and providing our customers with the highest quality services.”

Traders will note 23% tacked on to share pricing for the listing in the past month, a bounce that has taken root amid largely bearish action over the larger time frame. That said, CANN has a track record that includes a number of dramatic bounces. What’s more, the name has seen interest climb, with an increase in the recent trading volume of 64% above its longer-run average levels.

Traders should note this as important due to the relatively small float size in the stock (less than 15M shares). As savvy traders are well aware, with such a tight trading float, this kind of ramping interest can force a supply-shock squeeze.

Now commanding a market cap of $33.4M, CANN has a stash ($253K) of cash on the books, which is balanced by about $2.7M in total current liabilities. One should also note that debt has been growing over recent quarters. CANN is pulling in trailing 12-month revenues of $3.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 20.9%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $CANN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CANN, either long or short, and we have not been compensated for this article.