Crown Marketing (OTCMKTS:CWNM) Pumped Again, New Claim to Fame
Medical marijuana is hot. Or at least it used to be hot, now it’s closer to lukewarm. Still, Crown Marketing (OTCMKTS:CWNM) seems to think the green leaf is the way to success, as it claimed entry into the medical marijuana sector. Timed right along with the press announcements, the pump emails followed without fail.
Several pumper outfits, including Penny Stock VIP and Monster Trading Alerts, sent promotional emails for CWNM yesterday, after the markets closed, both compensated by $40 thousand. The stock that was in a near-death state with anemic share volumes over the last few sessions shifted a little over 1 million shares yesterday, propelled by the press release announcing CWNM‘s intentions to enter the medical marijuana industry. Traders obviously still strongly believe in the potential of the sector despite the recent chart hiccups of most marijuana stocks to get so enthused by the announcement.
CWNM declared its intentions to enter the industry through a newly formed subsidiary which should provide ‘ancillary’ financing and ‘back room support’ services for medical marijuana businesses. The justification for such a course of action is the supposed difficulty pot stock enterprises face seeking financing from ‘main stream business professionals’. The second objective of the subsidiary would be to harness the yet-nonexistent cash flows from services into research and possible uses of CWNM‘s controlled drug delivery technology with cannabinoids / CBD. This is all wonderful but it’s all within the plan of future projections. We also don’t keep a substance expert at hand but last time we checked CBD was not a substance that required a specific release and delivery system and there are products with a medicinal use out there that don’t have one.
To solidify yesterday’s news and fuel the hype some more, CWNM posted up another press release about an hour ago. The company informed potential investors that its new pot-oriented subsidiary has signed a memorandum of agreement with an unnamed entity that ‘controls $100 million’, whatever that may mean. The MOU is, of course, non-binding and its specific terms are neither explained in the news release, nor provided in an official filing. The news release was padded out with new tout emails from the same promoter parties arriving minutes ago.
Speaking of official filings, the latest one CWNM posted is a 10-Q for the quarter ended December and it contains the following numbers:
- $5 thousand in cash
- ZERO revenues in Q2 and Q3 of 2012
- $4 thousand in revenues since inception in 2009
With no newer filings, it may be assumed that the company’s financial position is pretty much the same. Traders probably also remember how many companies traded on pure hype triggered by announcements for entry into the marijuana sector within the last few months. This list includes Creative Edge Nutrition, Inc. (OTCMKTS:FITX) and Neutra Corp. (OTCBB:NTRR). The situation of CWNM prior to the announcement, the shaky substance of the news, the ability of such news to cause a wave of hype-based trading and the fact that the company is targeted by a pump campaign should be enough for traders to construct their own opinion of where this one is going to end up.
