Extreme Biodiesel, Inc. (OTCMKTS:XTRM) Surges After the Weekend
After the massive 91% increase in share price achieved by the stock of Extreme Biodiesel, Inc. (OTCMKTS:XTRM) last Tuesday it suffered through a series of corrections. Although it closed in the red for the next three consecutive sessions XTRM managed to keep most of its gains. On Friday it dropped by less than 5% and ended the week at $0.05 per share.
Over the weekend though sentiment among investors changed and yesterday XTRM started to climb up the chart once more. At the time of the closing bell the stock had almost returned to 6 cents per share sitting at $0.059. The 12 million traded shares for the session, although still significant for a company that just a month ago rarely saw daily volumes of 1 million, represent the least amount of traded shares since XTRM announced its entrance into the marijuana industry on February 4.
It appears that investors might be starting to lose interest in the company despite the attempts of Stock Market Media Group to keep the hype going. For the past 6 days they have released 3 PR articles that contained little more than fluff. A more meaningful update should come at the start of March when XTRM expects to close the deal for the 40 acre parcel.
The land is going to be used for hemp cultivation and the company has some big plans for the creation of five warehouses and an industrial center for the processing of the green plant. We don’t have any current information about the financial resources of the company because the report for the latest quarter still hasn’t been filed. Still five months ago at the end of September things didn’t look very promising:
• $2 thousand cash
• $22 thousand current assets
• $653 thousand current liabilities
• $16 thousand revenues
• $45 thousand net loss
• $22 thousand current assets
• $653 thousand current liabilities
• $16 thousand revenues
• $45 thousand net loss
Apparently XTRM has been pre-approved for a $5 million credit line for the purchase of real estate but no further information has been revealed since then.
With no current operations in the industry it is clear that the share price has been moving on hype alone. Even the official website for the marijuana subsidiary is still under construction. That is why playing their stock is extremely risky. HEMP, Inc. (OTCMKTS:HEMP) and Cannabis Science, Inc. (OTCMKTS:CBIS), part of the more established marijuana pennystocks, also began the week on a positive note. CBIS rose by a little more than 7% to close the day at $0.18 while HEMP finally recovered after four days of selling and surged upwards by 13% returning to 15 cents per share.
