American Green, Inc. (OTCMKTS:ERBB) Still On The Rise

Yesterday’s session brought American Green, Inc. (OTCMKTS:ERBB) another 13.97% up, in spite of the lack of actual developments related to the company.

To elaborate – on Dec. 9 ERBB produced yet another one of its meaningless PR announcements that was choke-full of vague optimism and superlatives, but didn’t actually announce anything of relevance.

What the company did do is state that its sales are doubling monthly – which certainly got the investor’s attention. Such fast growth rates are astounding, right?

Wrong. ERBB‘s revenues for Q3 2014 average at $20 thousand per month. Even if we double that number, then double it again, then double it again, the end result is still quite underwhelming.

The company claims that it made $100 thousand worth of sales in November. Which is a lot if you compare it with its results earlier this year, but is still an insignificant amount, no matter how you look at it. Even if the company manages increase this number by a factor of five in December, it still won’t be enough to justify its market cap. Why is that, you may ask?

Because ERBB‘s current market value is $60 MILLION. Yes, that’s right – a company that has $3.5 million worth of extremely toxic convertible debt, has consistently failed to bring a product on the market and whose revenues are as meager as ERBB‘s is valued at $60 million. But that really shouldn’t come as a surprise at this point. After all, that’s what marijuana hype does to dubious OTC Markets penny stock tickers – it flings them sky-high.

Still, as the old saying goes – what goes up must come down.