US Energy Initiative Corporation, Inc. (OTCMKTS:USEI) Explodes
US Energy Initiative Corporation, Inc. (OTCMKTS:USEI) is a biodiesel company that has had a tough time attracting investors lately and decided to make a turn in their business plan that proved profitable for the insiders and some of the faster traders in yesterday’s session.
The company, surely led by the hype surrounding the hype in the medical marijuana sector, suddenly decided to enter it, started work on forming a subsidiary called USEI Cannabis Initiatives Corp. and even made a website for it in no time.
Management claims that they have extensive relationships in the industry with patent holders, legal growers, marketers and dispenseries, but as it always happens with these press releases the information is too vague and the press release leaves the notion that it was just put out there in order to promote the company stock.
Nonetheless, traders bought in (probably due to the small price) and the company stock exploded, both in price and volume. After more than a week of being unable to pass the $10 thousand trade value mark USEI finally went into the millions.
The jump was a massive 588% and the ticker closed the session priced at $0.0062 on the highest volume in its trading history. At the final bell there were more than 417.8 million traded shares, which generated just above $1 million in dollar volume.
Let’s not forget about the past expectations expressed in their press releases and the final results. As mentioned in our previous article, USEI‘s CEO, Mr. Anthony Miller announced that they are expecting the company revenues to exceed $100 thousand in the next 45 days on August 20, 2013.
Needless to say, this wasn’t the case, as seen in their latest financial filing and this leaves a feeling that Mr. Miller’s predictions are not quite accurate. This leads us to having some suspicions about USEI‘s alleged future success and the strong connections the company has in the medical marijuana sector.
Meanwhile, a correction in USEI‘s price is already on the way, as the company stock is already 40% down in today’s session. Things will surely be intence until the final bell and judging by the massive amount of traded stock USEI might not be able to recover.
In any case, be sure to do a lot of due diligence and weigh out the risks, especially when deciding whether to invest in a company that has rapidly switched to and industry attracting so much attention such as medical marijuana.
Growlife, Inc. (OTCBB:PHOT) is also rising, but in a quite calm manner. Yesterday the company stock gained another 10% in price, generating a huge trade value. SK3 Group, Inc. (OTCMKTS:SKTO) also made a decent jump of 23%.
