Plandai Biotechnology, Inc. (OTCMKTS:PLPL) Drops To Half A Dollar
Investors have forsaken the stock of Plandai Biotechnology, Inc. (OTCMKTS:PLPL) resulting in even harsher corrections. The company has been crashing for six sessions in a row now and yesterday they dropped even deeper by slashing another 10% and closing at 50 cents per share.
Usually in pennyland such a price would be seen as extremely impressive but for PLPL that is not the case. For most of 2013 they were fluctuating around the half a dollar levels meaning that as of yesterday the stock has lost all of its gains made thanks to the marijuana upswing from the start of the year. Back then the rampant optimism was so strong that investors managed to boos PLPL to the unrealistic high of $2.5, while for a brief moment it even went as far as $3.12. Well, all those who believed the hype and decided to jump in at the time have now lost close to 80% of their investment.
The negative momentum is so strong that the last couple of PRs issued by the company have largely gone unnoticed. On April 8 PLPL announced that they are eligible for a grant from the South African authorities for somewhere between $1.3 and $2.5 million. On the very same day the stock crashed by 13% on a traded volume of more than a million shares. After months of fluff PRs and paid pumps investors will need to see significant progress with PLPL‘s business plan before trusting the company once more.
The latest round of email touts was sent just last Thursday by the affiliates of Sherwood Ventures LLC. InvestourSoup, SuperStockTips and PennyStockFinder all disclosed compensations of $15 thousand for their services. Reading the disclaimer at the bottom of the emails reveals that this is far from the first time they have been hired to promote the stock of PLPL. In fact this is their fourth attempt with the previous compensations ranging from $4000 to $33000.
In order to reverse the trend PLPL will have to start generating revenues from their products but for now that seems quite unlikely. Their Phytofare Catechin Complex is still months away from launching with a human bioavailability trial just starting while the previously announced plans for their cannabis operations still in the preliminary stages.
The marijuana industry as a whole is going down and optimism is diminishing thanks to the shocking suspension of Growlife, Inc. (OTCBB:PHOT) last Thursday. Yesterday Minerco Resources, Inc. (OTCMKTS:MINE) slashed a quarter of their value, 24.5%, and fell down to $0.012 per share. Fortitude Group, Inc. (OTCMKTS:FRTD) had an even worse day and after crashing down by 33% wiped all the gains they made at the start of the month. 