Strategic Global Investments, Inc. (OTCMKTS:STBV) Stops Sliding Towards the Bottom
The stock of Strategic Global Investments, Inc. (OTCMKTS:STBV) may very well be the only one that didn’t take off after the company announced it is going to enter the marijuana industry. There has been no shortage of financially desperate pennystocks switching to the much talked about green plant in order to give their shares an immediate boost.
STBV on the other hand has not had a single solid day in the green since the official announcement for the change in business plan became public on February 10. On the day of the announcement when the hype is usually the strongest and the stocks often post massive gains STBV also surged upwards and closed 71% higher at $0.005.
But if you take a look at the chart performance for that day you will see that it was far from positive. STBV was sliding downwards for most of the trading day and the closing price was significantly lower than the opening of $0.008. Now even after yesterday’s gain of 11% the stock is sitting much lower at $0.001 returning to its price levels from the start of the year.
So what is the reason that despite the unparalleled appeal of the marijuana industry investors are reluctant to put their trust in the company? Well, one needs to look no further than the massive amount of dilution that has taken place in the past couple of months.
In the quarterly report for the period ending September 30, 2013 STBV‘s outstanding shares were 207 million out of 1 billion authorized. Now try to imagine the reaction of the shareholders of the company when on February 11 OTCMarkets updated the information about STBV and those numbers were now 12 billion outstanding out of 100 billion authorized. We often use the word massive when describing vast amounts of newly issued shares but STBV is in a class of its own.
According to the latest 1-A Form filed January 16 the company will be trying to sell a total of 30 Billion shares priced at $0.0001 each in order to secure just $3 million in funds for their new marijuana business.
Yesterday another PR was issued informing traders that negotiations have finished and an agreement has been signed for the purchase of Bearpot, Inc. Bearpot own a marijuana growing facility in Teller County, Colorado. We found little to no information about them except for a blank site with their name and a “coming soon” sign.
Ultimately it is up to you to decide how promising STBV‘s newly formed operations are really going to be and if they are going to generate more than the last reported $476 in revenues. Just be sure to do your own due diligence and carefully consider every trade in order to avoid any unnecessary losses. Some of the companies that just entered the marijuana industry are starting to reach rather unstable prices. Extreme Biodiesel, Inc. (OTCMKTS:XTRM) dropped by more than 17% yesterday and closed at $0.05. At the same time Dewmar International BMC Inc. (OTCMKTS:DEWM) slashed close to 19% and finished the session at $0.02 per share.
