Smart Ventures, Inc. (OTCMKTS:SMVR) Tries Recovery as Promoters Move Out
Sometimes, a new cannabis stock will blaze up like a wildfire, but in the case of Smart Ventures, Inc. (OTCMKTS:SMVR), the ticker is slow to gain trust, despite the efforts from promoters and the company’s own PR. On a generally slow Friday for most OTC tickers, SMVR slid down more than 32% to $0.0127, on selling volumes above $1.167 million. 
SMVR could not stem the net selling on Friday, which reached record levels, despite the email from Stock Aviator, and the preliminary earnings report. In fact, the earnings mean just a promise- an expected strong first quarter of 2014. On top of all, for SMVR there is an overlap of its old oilfield business and the new attempt to enter the marijuana market. So the results for Q1, with revenues of up to $921,964, are reportedly due to consulting services for the oil industry. 
But through Cannabis Funding Group, Inc., a newly formed subsidiary, SMVR hopes to gain the extra attention needed to boost its trading levels, as the oil and energy boom among OTC companies is already in the past. In fact, we have not seen SMVR since 2011, until pumpers decided that the new cannabis venture was worth the attention.
The email from Stock Aviator comes at the tail of the trend, and the initial boost came from AwesomeStocks on March 14th, with a compensation of $10,000. Several smaller pumpers joined in, at a price of $2,500 per email, sending SMVR from one cent to a peak at nine cents- only to move on and let the price return to its original levels. Now, investors’ forums see some potential for bargain buying in the new week, if the ticker manages to rebounce.
The oil sector services left SMVR with the following financials to try out the new legal cannabis business:
- $34,000 cash
- $10,000 total current liabilities
- $539,000 revenues for 2013
- $539,000 net income
Indeed, SMVR has managed a strange business that hardly has any expenses, and is a significant net earner. But this does not soften the main risk, that SMVR is overly-promoted and may end up even lower, especially if dollar volumes drop to its previous levels.
SMVR is not the only oil company that created a link to the cannabis sector. Recently, Discovery Minerals, Ltd. (OTCMKTS:DSCR) offered a hot spike for investors, moving out of the triple-zero range and up to $0.0035, where it hangs on for a while. While DSCR lived through some volatility, in the end the ticker managed to create a rather smooth trend, a bit unusual for an underpriced stock.
And the staple marijuana ticker, Latteno Food, Corp. (OTCMKTS:LATF) used its earnings from another business to boost its positions. LATF for now manages to hold on above the penny positions, although it is drifting sideways at around $0.011. LATF announced significant earnings for 2013, but due to its seafood business- while the medical cannabis business is still in the development stage.
If you like SMVR, it is best to be aware of the risks for stagnating volumes, and a weak rebounce at best, as the email campaign pumped the ticker to an unusual peak and probably burnt out the initial enthusiasm. The marijuana index shows a general low mood in the sector, and individual selections spike from time to time, but the gains are in no way as certain as they were at the beginning of 2013.
