In the marijuana penny-stock arena if there wasn’t so much hype, some days there would be no news at all.
While a steady flow of positive PR releases can temporarily fuel stock volumes and share values, the periodic doses of reality soon bring them back to earth.
Here’s a roundup of the latest hype and reality checks on 4 most active, marijuana penny stocks:
Disappointing Quarterly Report
Creative Edge Nutrition Inc.’s (OTC Pink: FITX) had robust volume on Feb. 19, 2014 with 101,018,274 shares changing hands, slightly higher than its three-month average of 95,848,227 shares.
But that could change tomorrow because of a disappointing financial report released Feb. 19 for the quarter ending Dec. 31, 2013. The report showed that the company had only $18,978 cash on hand compared to its cash on hand the quarter ending Sept. 30, 2013 of $52,192.
Creative Edge’s assets remained static at $2,889,215 compared with $2,821,593 the quarter ending Sept. 30. But the company that is trying to establish itself in the medical-marijuana industry saw it liabilities rise substantially from $3,065,404 the quarter ending Sept. 30, 2013 to $4,601,644 for the quarter ending Dec. 31.
Finally, Creative Edge lost more money in the quarter ending Dec. 31 with -$1.5 million net income compared with a net income of -$426,876 for the quarter ending Sept. 30.
Is Big Announcement Coming?
On Feb. 18, Creative Edge invited its stockholders to an open house at the new location of CEN Biotech Inc. 20 North Rear Rd., Lakeshore, Ontario, Canada. The meeting will be held on Friday Feb. 21 at 5 p.m. and Saturday Feb. 22 at 10 a.m. This is another factor that could add to the volatility of the company’s volume and share price tomorrow.
Some are speculating that the Creative Edge is setting the stage to announce that its warehouse being constructed to store and distribute medical marijuana has or is about to be licensed by the Canadian government. But, this could be wishful thinking on their part.
A Potential Windfall - Operative Word ‘Potential’
Health Canada forecasts that there will be half a million medical marijuana users in Canada in 10 years, but Creative Edge’s CEO Bill Chaaban told Forbes Magazine Dec. 30 that with the availability and the assurance of consistency of the product it could only take two years for users to reach that magnitude.
These forecasts point toward a potential windfall for Creative Edge and other companies like them, if the Canadian government grants the Michigan-based company the final approval to sell medical marijuana in the country.
On Jan. 9, Creative Edge inched closer to approval by complying with the Canadian government’s regulations on tracking 1.3 million pounds of medical marijuana annually. The medical marijuana is to be distributed by Creative Edge’s wholly owned subsidiary CEN Biotech.
Creative Edge cleared this obstacle by using a new state-of-the-art M3Hub Seed-to-Sale tracking platform, which meets and exceeds Health Canada's tracking compliance regulations. This news comes less than two months after Creative Edge broke ground on its new 58,000-square-foot future Medical Marijuana distribution center, which will be attached to the company’s current 26,400-square-foot facility.
On Feb. 19, FITX shares closed at 10 cents down unchanged from its closing price of the previous day.
Find out what could be the best investor’s move when it comes to FITX by getting the complete report here, or by cutting and pasting the following link in your Web browser:
Huge Surge in Volume
Webxu Inc. (OTC Pink: WBXU) stock’s volume soared Feb. 19, with 13,662,228 shares changing hands, nearly 10 times more than its three-month average volume of 1,374,335 shares.
The surge in volume appears to have been triggered by a Feb. 18 announcement from the Santa Monica, Calif. –based media company that it had entered into a partnership with Hemp, Inc. (OTC Pink: HEMP) and its subsidiaries to provide online web development and mobile services for the industrial hemp and medical-marijuana industries.
Vague Non-Specific Release
This is just the latest of many vague and non-specific press releases being pumped out by companies hoping to cash in of the yet-to-materialize industrial hemp and medical marijuana business.
It would be nice if Webxu had told us about some of the new services, the split involved between it and Hemp, or anything other than the vague outline it hoisted on the public for PR effects.
It would also be nice if Webxu would file some recent financials. The latest one is from 2012, which showed that the company had about $4.2 million in working capital deficit, no yearly revenues and a net loss for 2012 of about $17 million.
On Feb. 19, WBXU shares closed at 39 cents up 5 cents from its closing price of 34 cents the previous day.
Find out what could be the best investor’s move when it comes to WBXU by getting the complete report here, or by cutting and pasting the following link in your Web browser:
Rental Space for Marijuana Stores
Primco Management Inc. (OTCQB: PMCM), a multi-media entertainment and real estate development company, share volume skyrocketed Feb 19, with 2,366,040,825 shares changing hands, eight time more than its three-month average volume of 292,284,645 shares.
The volume surge was triggered and continues to be fueled on Primco’s plans to acquire properties, which it will lease to licensed retailers and manufacturers of medical marijuana.
In a Feb. 12, 2014 release, the Century, Calif.-based company said it plans to initially acquire property in the greater Los Angeles area with subsequent plans to extend its operations to Western States where medical marijuana is permitted by state law. The leased facilities will meet all zoning and licensing requirements for the ongoing, legal dispensing of medical cannabis. Primco will not engage in the cultivation or sale of medical cannabis or any of its byproducts.
“Today's political environment regarding the legalized production of medical cannabis is the solution not only for patients in need of the medicinal benefits of marijuana but also in helping to keep the illegal dealing of marijuana off the streets. The economic dynamics are perfectly aligned to make this business opportunity a great success for us,” stated Primco’s CEO David Michery, in a written statement.
PMCM’s share value closed at 0.0029 cents on Feb 19, down 0.0016 cents, from its close of 0.0046 cents the previous day.
Find out what could be the best investor’s move when it comes to VAPR by getting the complete report here, or by cutting and pasting the following link in your Web browser:
Moving Toward Medical-Marijuana Licensing
Easton Pharmaceuticals Inc. (OTCPINK: EAPH) is yet another company that has visions of selling medical marijuana products in both Canada and the United States. But whether its visions are based on any business reality or just wishful thinking and hype remains to be seen.
On Jan. 29, the Toronto-based company announced it had moved to the next level of medical marijuana negotiations towards a possible investment/partnership with a private unnamed Canadian Company, in a cryptic and wordy release, which was long on hype and short on specifics.
Easton Pharmaceuticals said it is moving towards signing a contract to retain and hire a senior legal expert on Medical Marijuana in Canada to file a growers/ distributorship license on behalf of Easton Pharmaceuticals.
According to Easton Pharmaceuticals, negotiations have progressed to the next level with a private Canadian company who in November of 2013, submitted a highly- respected detailed application with the Canadian government towards obtaining a distributorship license.
Says Its Application is Strong
The company then went on to say that industry professionals and various insiders consider the application to be extremely strong and is believed will eventually receive approval in the near term. Easton management and consultants were impressed enough to request a list of items for its final stage of due diligence in an attempt to come to a fair and equitable agreement.
Management at Easton Pharmaceuticals are impressed with a plan to possibly make an agreement with various doctors and a compassion club that presently maintains 1500 patients who on average, it is estimated each person in the compassion club currently spends a total of $700 per month on marijuana for medicinal purposes. Easton has between 4 to 6 weeks maximum to close on an agreement acceptable to both parties.
On Feb 19, EAPH share price closed at 6 cents, down 1 cent from 5 cents share price at the close of the previous day.
Find out what could be the best investor’s move when it comes to EAPH by getting the complete report here, or by cutting and pasting the following link in your Web browser:
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