Minerco Resources, Inc. (OTCMKTS:MINE) Crashes by a Third
It seems that left without the support of optimistic PRs and the artificial hype the stock of Minerco Resources, Inc. (OTCMKTS:MINE) is going straight for the bottom of the chart. They have suffered through corrections for the past five sessions but yesterday was a real disaster.
MINE started sliding right from the start and by the time of the closing bell had wiped more than 33% of its value sitting at $0.0169 per share. The number of shares dumped on the market more than doubled the volume from the previous session and reached 224 million.
In our previous articles we warned investors that MINE has numerous red flags around itself and that the run it made between March 10 and March 25 was fueled solely by speculations. Another reason for the unnatural climb was the influence of a group of investors calling themselves the wolfpack. They chose MINE as one of their picks and caused a rather high wave of buying.
Their influence can be easily seen in last Friday’s session when they announced their latest pick – Fortitude Group, Inc. (OTCMKTS:FRTD) and as a result the stock surged by 53% on record volume. Yesterday though was a perfect example why we constantly insist that you should do your own due diligence before investing your hard-earned money – all three of the companies chosen by the wolfpack suffered massive crashes. As we said mine wiped 33%, FRTD slashed 15% while AvWorks Aviation Corp. (OTCMKTS:SPLI) was devastated by losing nearly 40% of its value.
Now MINE will have to rely on its own PRs to create enough optimism among investors and stop the descent of its stock because its fundamentals are far from encouraging. After 4 months of commercialization the company managed to sell exactly $5147 worth of products while at the same time spent $13 000 as costs for goods sold. Not to mention that around 600 million of the outstanding shares were issued at conversion prices ranging between $0.0001 and $0.0004.In the latest PR the company revealed that they will be having meetings with all of their lenders and Note holders. More details about the results of these negotiations should be given during the conference call scheduled for April 14. Until then keep in mind all the risks around the stock and plan your investments accordingly.
