US Energy Initiatives Corp Inc (OTCMKTS:USEI) on Another PR Spree
US Energy Initiatives Corp Inc (OTCMKTS:USEI) got pumped by Damn Good Penny Picks at the beginning of January and, as you might imagine, the results of the promotion were less than impressive. The ticker managed to register a couple of green sessions and it did break through the $0.001 per share mark, but the run was extremely short-lived. On January 6, USEI slashed a quarter of its value and, after some more hesitation, slipped back into the land of the triple zeroes.
When we covered the pump, we mentioned that USEI wasn’t the only actively traded ticker on the OTC markets and we said that the beginning of 2014 has brought some tasty profits for the shareholders of the so-called “pot stocks”.
Coincidentally, just a month later, USEI announced that they are entering the marijuana business. The effects on the stock performance were absolutely profound. The press release came out on February 3 and just seven hours after it was published, USEI was standing at around $0.0062 per share (a whopping 588% above its previous close). Two days later, they came up with another PR and, although it didn’t sound too convincing, it resulted in another jump. Over the course of two weeks, there were no significant announcements which meant that the hype and excitement died down a bit. The share price took a few hits, but, surprisingly or not, it managed to remain well above the $0.001 per share mark.
On February 18, USEI‘s management team said that they plan on uplisting the ticker to the OTCBB tier. This gave the price another push, but once again, the following two days were less than impressive. Early trading on Friday suggested that the ticker won’t go through a lot of movement at the end of the week, but about two hours after the opening bell, the management team issued a press release and this changed the market’s attitude towards the ticker. In actual fact, they didn’t say a whole lot, but they did announce that the primary markets for their upcoming cannabis products will be Colorado and Canada. This, apparently, was enough to push the ticker up by as much as 25%. USEI also managed to rack up a dollar volume of around $1.39 million which is quite an achievement for a double-zero stock. Today’s session, however, might be even more interesting.
A few minutes before the opening bell, USEI issued yet another press release. Apparently, they have already signed an agreement with an entity called Abraham Paiss & Associates who will help them market their cannabis products in the state of Colorado. Their new partners are, apparently, quite experienced and should help USEI get the new business going in record time.
As always, Anthony Miller, USEI‘s CEO, is quite happy about the new deal and he seems confident in his company’s ability to reap huge benefits from the contract. At the same time, however, he doesn’t seem too keen on telling us how he’s going to fund the cannabis business. As we mentioned in our previous articles, USEI was in quite a mess back in September and because there has been no official filings since then, we’ve no idea if things have somehow improved.
Don’t forget that Mr. Miller has felt pretty excited about USEI‘s past endeavors as well, but so far, his enthusiasm hasn’t been translated into a solid-looking balance sheet. In any case, at the moment, the ticker is running solely on the hype created by the recent series of PR’s. Sooner or later, USEI will need to support itself through its business operations and, judging by the historical performance, it might have some trouble doing it. That’s why considering all the risks is absolutely essential.
