Minerco Resources Inc. (OTCMKTS:MINE) Turns Red Again
Minerco Resources Inc. (OTCMKTS:MINE) experienced a burst of volatility on June 3, jumping as high as $0.0195 and more or less managing to retain some of its high for a couple of sessions thereafter. Now MINE is crashing again, without obvious cause.
The fact that MINE is currently traded as a marijuana stock has given it an edge on the stock market on multiple occasions. Experience teaches that marijuana PR affords a company much exposure and popularity, which in turn attracts investors easily and can push the ticker sky-high. However, there are negative sides to exploiting the volatility the green rush brings – its main fuel are impressive news. It doesn’t seem to matter how vague or uninformative the PR is – as long as it is optimistic and sounds exciting, it generates hype and ridiculous trading volumes.
MINE‘s current crash is a clear demonstration of what happens if a pot-stock company fails to deliver on that account too. Usually a 17.92% crash in a single day means that the company has done something to displease its investors. In MINE‘s case yesterday, the company merely failed to captivate their attention – and with nothing else going for it, all it could do was take a nose dive.
Crashing immediately after the PR grows cold seems to be quite common among marijuana penny stocks. Which is hardly surprising, since most of them show results not all that much better than MINE‘s latest 10-Q. Suffice to say, it failed to impress diligent investors:
- cash – $24 thousand
- current assets – $40 thousand
- current liabilities – $2.8 million
- quarterly revenue – $5 thousand
- quarterly operating expenses – $469 thousand
Investors would do well to consider the horrific amount of toxic debt that MINE is in the habit of accumulating, its tendency towards rapid dilution and the aforementioned meager commercial results. With these factors in mind, it should be obvious why investors are losing interest in MINE as soon as the it stops actively trying to generate hype.
Another company who suffered a huge blow to its market value in yesterday’s session was Alkame Holdings, Inc. (OTCBB:ALKM), who started glowing red after its rather expensive pump campaign turned sour.
