Minerco Resources, Inc. (OTC:MINE) Rises Again as Underpriced Day Play
Another February hit, Minerco Resources, Inc. (OTC:MINE) has attracted investors, adding 50% to its ticker price despite choppy trading. Yet the current levels are way below previous highs, and the extremely low price of $0.0023 easily allows daily drops of upward of 24%, just like the ticker did on Thursday. 
Last spring, MINE started off with high hopes, hovering around 20 cents, but we can easily see it reverted to a tenth of its value. When the company started its claims as an OTC ticker, little did people expect a rather quick slide from $1 levels to double-zero territory. Meanwhile, the balance sheet holds significant weaknesses: 
- Zero cash
- Zero assets
- $4.7 million total liabilities
- $1.32 million net loss
It seems this development stage company did little but burn through cash since its inception in 2007. Although MINE claims to own two renewable energy projects in Honduras, this does not reflect into its income statement. In an 8-k filing from February 27th, MINE announced it is getting into the beverage business, by paying a California-based consultancy a total fee of $25,000. While the 8-K may have awakened investors, the beverage is still at the consumer brief and project level, leaving MINE to rely on hype and future expectations, as in the past, where it erased the larger part of its value.
While the current activity may be due to valley buying and day trades on an extremely underpriced ticker, last April MINE went up on a series of promotional emails. The budget for the pump was a reasonable $25,000, by promoter Stock Rock And Roll.
Stock Rock and Roll is a paid pumper with a long record of previous failures, and risky stock picks that go high and fall through a trapdoor at the end of the promotion. It is best to see past stories where losses erased most of investors’ money, leaving them unable to sell the depressed stock due to low volumes. A previous pick, Chancery Resources, Inc. (OTC:CCRY) was a long and ongoing pump that slid to a faction of its value. Before committing to double-zero plays, estimate your own time horizon and don’t fall for press releases concerning future business.
