Minerco Resources Inc (OTCMKTS:MINE) Can’t Seem to Find Bottom
Minerco Resources Inc (OTCMKTS:MINE) has been spiraling down since Oct 27, and so far has obliterated 45% of its market price. By the time of yesterday’s closing bell MINE was down 8.33% on a volume of 30.9 million shares, and is currently at $0.0033.
For MINE this past week has been a whirlwind of filings and PRs. From Nov 4 to Nov 7 MINE has issued press releases on a daily basis.
On Nov 7, the company turned in a Form 3, which stated that the “key employee” Juarez William Henry Jr. owns no company securities. There were also two Form 4s (here and here), which disclosed that V. Scott Vanis and Sam J. Messina III have each acquired 500 thousand Class B preferred shares at the price of $0. The transaction codes were listed under A, which stands for “Grant, award, or other acquisition”. Why they were awarded with these shares remains unknown. On Nov 7, the company also filed its annual report. The 10-K covers the fiscal year ended July 31, and shows the following:
- cash: $304.1 thousand
- current assets: $906.5 thousand
- current liabilities: $1.1 million
- revenue: $12.3 thousand
- net loss: $12.5 million
Quarter over quarter, there are a few improvements regarding the financial numbers. Cash has increased, the liabilities have decreased and the revenues have grown. However, there is a larger working capital deficit and a considerable net loss.
What’s more alarming than the disappointing financials is the devastating dilution. The Subsequent Events section of the report shows just how prone to issuances MINE is. Since Aug 1 to Oct 29, for one reason or another, approximately 584 042 915 shares were printed. Bear in mind that these shares were issued after the fiscal year end – July 31. A considerable amount of them were priced either at $0.00025 or at $0.001 each. Even with MINE‘s current price, the shareholders could very quickly cash in, should they decide to dump their shares on the open market. As for the fiscal year ended July 31, the report states that “As of July 31, 2014, our obligations under outstanding notes totaled an aggregate principal amount of $305,389”.
It is hardly a mystery why the stock continues to crash, and why even the bombardment with positive PRs fails to push it in the green. Only time will tell whether it will put an end to the negative sessions and attempt recovery. Do your own due diligence before committing to the stock , and never invest money you cannot afford to lose.
