Vega Promotional Systems, Inc. (OTCMKTS:VGPR) Banks on Denver Cannabis Expo
Vega Promotional Systems, Inc. (OTCMKTS:VGPR) seems to be defying the gravity of the markets, as there is no sign of the typical correction that is affecting marijuana stocks. Even at this low price, VGPR is still attracting enough attention to keep its gains. VGPR rises on the general appeal of sub-penny stocks. The gains are small, though steady. On Wednesday, VGPR added above 4% to $0.0087, as buying reached above $644,000. 
VGPR set itself up for a few more days of success while the Cannabis Cup in Denver is underway. The company is using Twitter to distribute pictures of its participation, adding to the general online hype. This really pleased investors’ forums, which are now expecting an even stronger run for VGPR.
It is dubious if orders for the products of VGPR will start pouring in soon- and until now, the company does not show too much business either:
- current assets: $18 thousand in cash
- current liabilities: $134 thousand
- no revenue since inception
- yearly net loss: $120 thousand
While the Denver expo lasts, VGPR may continue to recover, especially if the pessimistic trend of the last few days is reversed. But for this stock, the price is so low that movements in either direction may be sudden and rather large. Also, we can’t know if VGPR would last, and if it could manage to sell enough biochar to cannabis growers to improve its financial situation.
Even if the company can’t secure an inflow of future orders, investors expect new PR soon about an initial order of about six tons of bio coal. Unfortunately, biochar is not a unique products, and there are enough external sellers, so that VGPR may need to work hard to gain a position as a supplier. Also, it is unknown if marijuana growers would really need the material. Still, VGPR chose a rather direct approach to the legal cannabis business, as other small cap companies usually offer much more outlandish products with uncertain application.
Otherwise, VGPR remains a company with enough red flags to discourage long-lasting investment. The new CEO Michael Molen is under investigation for allegedly sending out a bad check for $50,000. And also, the company does not have a proper office, but sends out a mailbox address in Georgia.
At the same price range, United Treatment Centers, Inc. (OTCMKTS:UTRM) is still holding on. The ticker staged the usual fast rise from extremely depressed prices, but in the last two weeks saw interest recede, so UTRM stagnated around $0.008.
Resource Ventures, Inc. (OTCMKTS:REVI) is yet another newcomer to the MMJ sector, which is unfortunately in sliding mode. REVI still holds above the penny levels, but volumes are thinning out and the price could descend to double-zero positions again.
If you are betting on a recovery of the legal marijuana sector any time soon, be aware that the change in direction is not guaranteed, especially following the bubble conditions at the beginning of the year.
