I am a firm believer in Cann Group, but the recent surge was a...

I am a firm believer in Cann Group, but the recent surge was a classic pump and dump.

AFR posted their story with way more information than they should have had access to. They gave no source or evidence to verify their claim of a $4.50 valuation. Buyers pile on as expected and push the share price up.

Cann Group confirmed only that Aurora was in preliminary talks about a transaction and denied that it was for a takeover bid. Share price keeps climbing anyway.

Cann Group releases ASX response to officially counter the AFR story. Share price falls dramatically, as expected.

I doubt there will be any further announcements on an Aurora transaction in the immediate future and as the quick-money buyers lose patience the share price will make a slow march back to its previous level.

Aurora may eventually takeover Cann Group completely but I suspect a 4-5% increase in their holding to come first. Based on my own research I believe this is the transaction they were in preliminary discussions about, but time will tell and only true insiders really know.

I hate seeing games being played with genuinely valuable companies but I took a great profit during the recent surge. If it falls as much as I expect it to I’ll be rebuilding my long position but the current price is based on blind speculation and I don’t trust the rumour mill for a second.