Minerco Resources Inc. (OTCMKTS:MINE) Going Red Again
Minerco Resources Inc. (OTCMKTS:MINE) had an amazing run from March 14 to March 25, increasing its market value nearly 900% over the course of 7 market sessions. After that point, the journey became rougher, and now MINE is down another -8.28%.
MINE‘s rapid chart climb might have been impressive while it lasted, but it was all too clear that the company couldn’t keep growing at such an alarming rate for very long. With that in mind, it didn’t come as that much of a surprise when MINE took a nose dive immediately after its latest financial report showed investors the disappointing truth about the company’s finance:
- cash on hand – $24 thousand
- total assets – $85 thousand
- total liabilities – $2.8 million
- sales – $5147 (NUMBER NOT IN THOUSANDS)
- net loss – $34 thousand
The crash lasted only two sessions, after which hype and hope pushed the ticker upwards again, as did MINE‘s March 31 press release. The announcement that MINE will be holding collective and individual meetings with all of the Company’s lenders and Note holders during the following week qualified as media exposure and pushed the ticker up. However, upon closer examination, the very fact that such a meeting has become a necessity can be taken as yet another red flag. The meeting is an obvious symptom of MINE‘s heavy reliance on funds acquired through convertible promissory notes.
Additionally, MINE has reached 2.1 billion outstanding shares, around 0.6 billion of which were issued after June 2013. Most of these were issued at dirt-cheap conversion prices. The way things are going, MINE traders are looking at the possibility for even more dilution, before the company hits its present limit of 2.5 billion authorized shares.
Between that, and the fact that MINE is now exhibiting all the market behavioral traits of a full-fledged pot-stock, it should come as no surprise that the ticker started crashing once the dust started to settle.
Another marijuana stock that went seriously in the red yesterday was MyEcheck Inc. (OTCMKTS:MYEC), who lost 7.69% of its market value in the same session.
