Monarc, Corp. (OTCBB:MONA) Continues the Unexplained Climb
Monarc, Corp. (OTCBB:MONA) is flying high right now, but we have to go and check if its sudden rise was not an April Fool joke. That’s when MONA flew out of the triple-zero range, and managed to roost at $0.002. The ticker is volatile, losing 20% on Tuesday, to $0.0028 as dollar volumes were just below $500,000. The selling almost offset the buying of the last few days, as profits were taken at the top of the trend. 
Now, the question is when MONA would crash to nothing. The first giant red flag is that MONA has still not complied with the OTC demand to update its financial filings, and has a limited information warning on its profile page. We have not covered MONA in its current fast rise, and we have not intercepted a paid promotion so far. This is the company’s fifth name chance, as it went under “Esprit Financial Group, Inc.” until 2008, but we have no coverage for that time either. So MONA is a cat in a bag, as even its current PR is patchy.
The only suggestion of the reason for the spike is a link to private company Flex Power. Investors expected an update on the deal at the end of April, but so far MONA keeps silent. Still, at this rate of growth a PR or other publicity effort could help MONA climb farther from its very low price.
A big problem for MONA are the 1.5 billion shares in free float, and a total of 2.1 billion shares outstanding, which may prevent the stock from being squeezed upward by scarcity. And we cannot even gauge if MONA has any funds to justify its $5.8 million market cap. True, the number is rather low, but it does not guarantee growth in any way.
MONA sports a big portfolio of media and communication logos, including businesses in China. Still, in the best-case scenario it is a legitimate company that will never move out of the double-zero range. MONA may remain attractive for a while for its novelty, but without updates this new discovery would easily fizzle out.
MONA resembles the case of Bebida Beverage, Co. (OTCMKTS:BBDA), which spiked at the beginning of the year on renewed interest. Still, BBDA quickly returned to a more normal range, losing more than 60% from its peak value to hover at $0.0011.
The classic risky case in the past months is the double-zero ticker that is also a marijuana stock. Those selections offer the biggest risks and volatility, as they are inflated disproportionately by the expectations that the MMJ enthusiasm will always deliver gains. MONA resembles exactly this irrational buying, and may be prone to the same fluctuations.
Even more stable sub-penny tickers like Latteno Food Corp. (OTCMKTS:LATF) are sliding and dragging down the gains. LATF is now sinking toward $0.005, after it held on for a while above the penny levels. LATF even had the luck of spending time within the Marijuana index, thus enjoying robust trading, but the periodic sinking under one cent led to the exclusion of the company, once the index took up more strict criteria for listing cannabis companies.
If you like MONA for its low price and fast growth potential, keep in mind that double-zero selections are inherently dangerous, and even if MONA grows, this does not guarantee it will hold on to the gains.
