Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH): The Newest Arrival, Aims for One Cent and Above
As we mentioned several times, marijuana stocks have different risk profiles, and with many newcomers among the most active OTC profiles, it was high time for another double-zero. More than $1.44 million were poured into Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH), boosting its daily growth to 340% and to a price of $0.0088.
EAPH was a barely traded ticker that started to root into the marijuana trend as early as last November, and now it is no wonder it was added to investors’ preferences.
Still, EAPH is one of the tickers we warned about, holding much more red flags than better- quality pot stocks. In the past, EAPH was reaping the benefits of the dubious Mexican cancer-fighting industry, trying to push a new drug proposal.
For EAPH, the new recipe is quickly finding a supplier and distribution channels, so it could get onto the medical and recreational marijuana bandwagon. But until then, the very low price will mean short-term volatility remains elevated.
The next big news for the marijuana sector will be the clearance for banks to be able to smoothly run the transactions of the business, without the document-heavy requirements related to handling potentially criminal money transfers. So far, sales need to happen in cash, which has proven difficult for both medical and recreational vendors.
And EAPH, despite its past history, seems quite well equipped to move into the marijuana business in earnest, holding:
- $95 thousand cash
- $208 thousand total current assets
- $406 thousand total current liabilities
- ZERO revenues since inception
- $47 thousand net loss
EAPH is yet another company that appropriated an old business model, through partnerships and internal changes, to the requirements of the newly booming sector. Vape Holdings, Inc. (OTCMKTS:PLPED) is the newly minted name of a former social network company that merged with a company exposed to the marijuana industry. The ticker easily reached $30 in the day of the split, and will have to show its mettle at the new hefty share price.
AVT, Inc. (OTCMKTS:AVTC) also made a dramatic move, vaulting the $5 level in just two trading days, carried by the extreme appetite for newly discovered marijuana stocks.
In case you would like to take part in the bonanza, it is best not to rely too much on a single star company, and make use of the bubbling over that has spread among many tickers, in different price ranges.