Vega Promotional Systems, Inc. (OTCMKTS:VGPR) Spikes Ahead of Cannabis Expo
While older marijuana stocks retreated in March, it was the month when the efforts of Vega Promotional Systems, Inc. (OTCMKTS:VGPR) started to pay off, and activity increased. The last few days also came in with the delayed, but much expected price growth, as the price of one cent proved attractive for investors. On Wednesday, VGPR grew by more than 34% to $0.0097, as buying reached $2.02 million, close to the record levels. 
The current rise in VGPR is unrelated to a promotion. Back in December, VGPR was boosted by emails under the old name, Vega Biofuel Systems, Inc., but the current announcement for wider participation in the legal cannabis sector served even better than a promotion.
Fortunately, the old business model at least did not lead to dismal deficits, though VGPR has its drawbacks:
- current assets: $18 thousand cash
- current liabilities: $134 thousand
- no revenue since inception
- yearly net loss: $120 thousand
But for now, VGPR is enjoying its upward ride, boosted by an April 9th press release. The company announced it would be showcasing its potential at the BIG Industry Show and Cannabis Cup in Denver, Colorado. The specialized gathering would happen on April 16th, and has the potential to boost the stock price further by inviting new investors.
In fact, the four-day event may help boost other companies in the legalized marijuana sector, at least by providing general publicity. Otherwise, the event is not a direct hawking to investors.
Unfortunately, the business model of VGPR to produce charcoal soil enhancement and filtration systems, does not match that of most participants at the Cannabis Cup. The exhibition is mostly focused on producers and end-users, instead of the infrastructure of the cannabis business.
Still, VGPR now lines up with other tickers that appeared out of nowhere, bringing in a fresh dose of optimism. Investors are more cautious, expecting to see VGPR consolidate at the end of the week, but also seeing stronger price gains in the new period, especially around the cannabis show.
Now, VGPR lines up with other similar climbers, and hopefully it won’t share their fate. Smart Ventures, Inc. (OTCMKTS:SMVR) was one of the companies that added strong gains to a price of a few cents. Selling intensified, bringing the ticker down to a penny- still a gain, considering that SMVR started off from double-zero positions.
As a benchmark, we could use Latteno Food Corp. (OTCMKTS:LATF), a ticker that is flirting with the penny levels but never quite getting there. On the plus side, LATF is almost always actively traded, and offers robust trading volumes. Newcoming companies usually spike in volumes, only to slack off the trading levels.
If you want to ride out the positive momentum that is expected in the next few days, keep in mind that even strong-looking MMJ tickers tend to correct unexpectedly, especially with the current cautious attitude and lower investment and trading levels.
