Extreme Biodiesel, Inc. (OTCMKTS:XTRM) Pushed Through The Roof By Marijuana Hype
Just two weeks ago the stock of Extreme Biodiesel, Inc. (OTCMKTS:XTRM) was sitting well into the double zero territories and leaving them seemed nigh impossible. On February 3 the management team announced their plans to transform the company into a holdings corporation with subsidiaries in the Real Estate, Technology and Biofuel. Investors were far from impressed and the stock lost close to 15% on the same day.
Even now the hype is holding stronger than ever and the company is continuing to post new chart records. Yesterday their stock had one more session with gains of more than 91% after which it closed at $0.065. They reached a new 52-week high of $0.069 while also shifting the record number of 59 million shares. Obviously he corresponding dollar value of $2.7 million was also never before seen by XTRM.
Although even mentioning the marijuana industry is bound to attract significant interest from traders XTRM is not relying solely on it. By now the company has issued 9 different PR articles while at the same time various paid pumpers have been touting their stock. The latest additions were Hole In One Stocks and Penny Stock Parlay, both affiliates of GS Media. The pumpers sent a round of email alerts after receiving $9000 as compensation for their efforts.
It is true that XTRM have been able to make a truly explosive progress, at least according to their PRs. The company has completed the assembly of a Mobile Hemp To Biodiesel Production Unit and have opened an escrow on 40 acres parcel on which they plan to create a hemp and marijuana growing facility. But maybe the most important piece of information was their pre-approval for a $5 million loan from Coastal Mortgage Group.
Before jumping in though investors should take a step back and carefully look at all the risks around the company. No deal has been finalized yet while their previous business left them with rather depressing financial resources. At the end of September, 2013 XTRM reported:
• $2 thousand cash
• $22 thousand current assets
• $653 thousand current liabilities
• $16 thousand revenues
• $45 thousand net loss
The financial report for the second quarter of their fiscal year was not filed in the required period of 45 days and now XTRM have the PINK limited information symbol on their OTCMarkets profile.
As most marijuana stocks XTRM may offer opportunities for short-term gains if you plan your investment accordingly but any long-term positions should be initiated after careful consideration and plenty of due diligence.
In early trading today the stock is climbing even higher up by 12% at $0.073. At the same time some of the more established marijuana plays are having a harder time. Growlife, Inc. (OTCBB:PHOT) is going down by close to 3% at $0.385. Tranzbyte Corp. (OTCMKTS:ERBB) is trying to recover after plunging downwards right after the opening bell but is still 4% in the red at $0.036.
