[[tagnumber 0]][[tagnumber 1]]Solar Power, Inc. (OTCMKTS:SOPW) rarely closes a session in the red and it has experienced massive growth in the past several months, gaining nearly 1000% in value since the start of July.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This is all happening while the company is issuing massive amounts of shares in private placements in order to obtain working capital. On October 21 it was announced that the most recent private placement for an aggregate of [[tagnumber 6]]$43.8 million[[tagnumber 7]] has been completed.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The company itself has a strong balance sheet and we are most interested what their report for the third quarter will contain after all these private placements and issuance of shares. Here are the numbers from the report for the second quarter.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 15]] [[tagnumber 16]]cash: $5.85 million[[tagnumber 17]] [[tagnumber 16]]current assets: $17.24 million[[tagnumber 17]] [[tagnumber 16]]total assets: $72.84 million[[tagnumber 17]] [[tagnumber 16]]current liabilities: $44.09 million[[tagnumber 17]] [[tagnumber 16]]total liabilities: $56.85 million[[tagnumber 17]] [[tagnumber 16]]quarterly revenues: $9.94 million[[tagnumber 17]] [[tagnumber 16]]quarterly net loss: $2.17 million[[tagnumber 17]] [[tagnumber 30]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Surely, this is one impressive balance sheet for a company listed in the OTC markets. The current market cap, however, is also pretty large and should have passed the $1 billion mark with the recent issuance of shares that isn’t accounted for in the OTC markets profile of [[tagnumber 6]]SOPW[[tagnumber 7]] yet.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The latest news are the [[tagnumber 6]]SOPW [[tagnumber 7]]has entered into several agreements with [[tagnumber 6]]GD Solar Co., Ltd[[tagnumber 7]], a subsidiary of Guodian Technology & Environment Group Corporation Limited. According to it [[tagnumber 6]]SOPW [[tagnumber 7]]will buy a total of 160 megawatts of PV capacity from GD Solar affiliates for a price of [[tagnumber 6]]RMB1.575 billion[[tagnumber 7]], or [[tagnumber 6]]$257 million[[tagnumber 7]].[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The amount of money is huge and we are quite sure that the printing presses at SOPW will keep running at full throttle, causing further dilution, but still, the news were received very well as SOPW climbed 12.77% while a total of 1.19 million shares changed their owners, generating $3.15 million in dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Early today [[tagnumber 6]]SOPW[[tagnumber 7]] announced its intentions to acquire six more projects that are under construction from [[tagnumber 6]]ZhongNeng GuoDian New Energy Development and Investment Jiangsu Co., Ltd[[tagnumber 7]] and we are pretty sure that investors will be excited.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 64]][[tagnumber 65]][[tagnumber 2]] [[tagnumber 0]]Still, it is always a good idea to do your due diligence and weigh out the risks, especially when we have such heavy issuance of shares at such great discounts. After all, you don’t want to be caught there, pants down if the bubble pops. [[tagnumber 2]]
After almost a month of silence, American Green Inc. (OTCMKTS:ERBB) finally teased a little more of the newest version of its ZaZZZ vending machine. This early leak was not enough to help the company maintain its chart position. ERBB dropped 11% to close under $0.02 per share once more. Volume was lower compared to Wednesday but remained far above the monthly average, at 81 million shares changing hands.
Even though there is no official press release yet, yesterday morning ERBB posted a picture of the new iteration of the ZaZZZ pot vending machine on its social media profile pages. The Mach 2 version of the ZaZZZ will have an “all 3-D touch screen front”, the posts inform. Indeed, the new ZaZZZ seems to have done away with the small touchscreen panel on the right. Where the glass window showing stocked products used to be, now stands a large touchscreen. There may also be a camera this time around, but the photo is too small to really tell.
ERBB also said that “software work begins”, now that the unit has been delivered. With the first new ZaZZZ arriving in the company’s offices and with unfinished work on the software that will eventually run on the machine, it seems very unlikely that ERBB will deliver on its promise to have multiple instances of the Mach 2 up and running in multiple states across the US by the end of October.
The company chose to tease the new machine before it could confirm it will meet its newest promise – to have it in multiple dispensaries “in October”. It could be that investors are getting so used to ERBB missing its own deadlines and failing to deliver on its promises for the ZaZZZ that another potentially missed deadline is no longer an issue.
With the company’s next quarterly report due in less than a month, anything that can help ERBB‘s share price is good news for the company. If the Q1 report shows toxic debt financing continued and ERBB‘s common stock got diluted further, this may put a wet blanket on the ZaZZZ multi-state launch. That is, of course, if the launch happens before the report is out.
InVivo Therapeutics Holdings Corp. (OTCMKTS:NVIV) had a bit of a tumble on Wednesday, but managed to recover during the last thirty minutes of the session that followed.
NVIV managed an impressive jump, in spite of the reduced dollar volume, and almost managed to break the $1 barrier, but was cut a bit short by the closing bell. Still, this sudden peak of interest gives some investors the hope that the ticker will do even better today.
As it is, the only reason for NVIV not to go any higher is the fact that the company is still in the early stages in its research. There are some hopeful rumors that the company will be fast-tracked by the FDA, but that shortcut can only be taken after NVIV has come up marketable product. First the science has to check out and perfecting a technology as complex as the Neuro-Spinal Scaffold may take quite a bit of time.
In similar circumstances, logic dictates that the ticker should remain stable as long as there are no significant developments that could influence its direction. Still, OTC Markets penny stocks being as volatile as they are, it wouldn’t be surprising to see NVIV stock prices jump for no other reason but hype or plummet unexpectedly, in spite of the lack of bad news.
As it stands, if hype or panic does not push the ticker in the mean time, it is highly likely that the next big movement NVIV will register will happen when it announces more results from its research. If the news are good, the ticker will probably soar once again. If they are not – it will most likely be headed straight down.
This week the majority of the potstocks suddenly reversed their depressing chart performance and surged upwards thanks to the general industry hype. The stock of Cannabis Science, Inc. (OTCMKTS:CBIS) wasn`t an exception and in just four sessions managed to run from $0.0467 to a high of $0.074, an increase of 58%.
Yesterday though the company strayed away from the general movement of the marijuana pennystocks and instead of incurring severe losses actually made another small jump. Compared to Hemp Inc (OTCMKTS:HEMP) who crashed by 21%, Medical Marijuana Inc (OTCMKTS:MJNA) wiped 16% and American Green Inc (OTCMKTS:ERBB) who slid by 11% at the end of the day CBIS was sitting 2% in the green at $0.0755.
The widespread hype may have helped the company regain some of its lost ground but investors should still be extremely careful when dealing with the stock. On its own CBIS had been going down for quite a prolonged time. At the start of June they traded around $0.125 per share while a low of $0.045 was registered just a few sessions ago. The company itself hasn’t issued a press articles since the end of September and even that one failed to stop the downwards slide. As we said in our previous article CBIS announced a laboratory services agreement with ImmunoClin Corporation but investors couldn’t overlook the fact that Dr. Dorothy Bray is a Director, President and CEO of both companies.
The financial results reported by CBIS are another serious cause for concern. They finished the second quarter of the year with:
• $791 thousand cash
• $1.1 million total current assets
• $4.2 million total current liabilities
• ZERO revenues
• $1.5 million net loss
Despite the rather distressing numbers for the first half of 2014 the management team has received a total of $3.19 million as stock-based compensations. Under the 2012 Equity Compensation Plan over 48 million shares have been issued so far and another 6.5 million were registered under the 2014 Stock Compensation Plan.
This brings us to another massive red flag – the continued dilution of the common stock. As of June 30 CBIS had reached 846 million outstanding shares out of the 850 million authorized. That is why after changing the rights of the preferred A shares an increase of the authorized shares to 1.5 billion was voted.
The fact that CBIS has been targeted by paid pumps on numerous occasions, the last time was in mid-September, shouldn’t be ignored either.
It is paramount to do your own due diligence before committing to any trades involving the stock. The current hype could offer some opportunities for quick gains but if you miss the right timing the losses could be devastating.
Medical Cannabis Payment Solutions (OTCMKTS:REFG) went through an interesting session yesterday. It opened the day with a significant gap up at $0.1315 and tried to go even further up. It hit an intraday high of $0.138 but staying there proved to be too much which means that it finished the session just above the $0.12 mark or 1.7% in the green.
Hardly the most impressive performance out there, but we can’t ignore the fact that investors traded more than 4 million shares which resulted in a daily dollar volume of around $500 thousand. What’s more, they did it after REFG spent more than a few months hibernating and sitting virtually idle. It’s pretty clear that something is up. What is it?
Yesterday’s volume spike wasn’t caused by a piece of news. REFG‘s latest announcement is now more than a month old and in it, the company CEO, Jeremy Roberts, said that “2014 has been a thrilling and enjoyable year” for REFG.
We opened the latest financial statement and we were left more than a little confused by these words. The figures for the second quarter show what we mean:
- current assets: $15,570 in cash
- current liabilities: $143,599
- quarterly revenues: $5,000
- quarterly net loss: $5,672
It’s pretty clear that REFG still have a long way to go until they become “a leader in technological solutions for the medical cannabis industry” (words taken straight from the company’s press releases). Still, we should mention that after the end of Q2, REFG secured a $500 thousand strategic investment which should give them a push. You never know, the forth quarter might just turn out to be extremely impressive.
We’ll need to wait and see if this is indeed about to happen, but in the meantime, the question remains: “What’s the reason for yesterday’s sudden and violent volume spike?”.
The answer can be found in our database. That’s right, REFG has become the target of yet another paid pump.
Various third parties have set aside a total of $85,000 and in exchange, numerous promotional outfits have flooded investors’ inboxes with sixteen emails in a matter of less than two days. Darth Trader a/k/a The Stock Psycho pocketed $20 thousand, Winning Penny Stock Picks as well as the rest of the newsletters owned by Freedom Ventures LLC disclose a $15 thousand compensation, and Penny Stock Circle have received $50 thousand.
For various reasons, the stock promotional industry isn’t in its heyday at the moment, but that every now and then, newsletters manage to attract some attention to their picks. The thing is, if anything, that makes playing the few active pumps even riskier.
Hype rarely lasts for long which means that the people who stand to make some money out of the promotion might be willing to do it as quickly as possible. That, in turn could spell disaster for the investors who are jumping in because of the pumpers’ promises of wealth and fortune.
All these risks are present with REFG at the moment and considering them carefully before putting any money on the line is absolutely essential.
On Oct 1 VAPE HOLDINGS INC (OTCMKTS:VAPE) dropped and continued to plummet until Oct 20. After the fourteen-day descent, which resulted in a 60% price drop, VAPE finally bounced on Tuesday, and since then has been climbing the charts. Yesterday the stock had its third consecutive positive session. 256 thousand shares changed hands while VAPE gained 4.96% and closed at $1.27.
VAPE is still very far away from its positions when the marijuana craze was at its peak at the start of 2014. Back then VAPE was hovering high in the charts with prices ranging from $14.60 to $35.90. Today, VAPE struggles to sustain prices between $1 and $2, and that’s a long way down from $35.90.
The most recent news we found on VAPE was an article issued on Oct 19. According to it, the SEC will be taking a closer look at all marijuana-related companies on the market, since there have been so many pumps on pot stocks, which bring huge profits for some, but in the end harm the regular investor. The article mentions several companies, which are “under scrutiny”, including VAPE, Growlife Inc (OTCMKTS:PHOT), and Growblox Sciences Inc (OTCMKTS:GBLX). It is highly unlikely that this caused the surge, what’s more likely is that it caused the 14% drop on Oct 20.
Another article, from Oct 15, disclosed President Obama’s intentions to nominate Vanita Gupta for the position of United States Assistant Attorney General for the civil rights division of the Department of Justice. Ms. Gupta supports the legalization of marijuana, and it is no surprise that a lot of people in the marijuana industry believe that if she were appointed to the position, it “will be simply game changing”.
As we already mentioned, VAPE has no recent filings, their latest one is from Aug 19, and it is their latest 10-Q. For the three months ended June 30, VAPE reported their biggest revenue yet. As they disclosed, this was their “first revenue-generating fiscal quarter”. Other than that, the numbers failed to impress. There was working capital deficit and a substantial net loss.
What’s worse, the 10-Q shows that VAPE has made quite a lot of issuances at considerable discounts. 296 thousand shares were printed with a price of $0.678 in this quarter alone. There are also notes, which convert at a 40% discount from the lowest market closing price within the previous twenty market days, and shares with a set price of $1.31.
Investors would do well to familiarize themselves thoroughly with the details surrounding VAPE, before committing to its stock.
[[tagnumber 0]][[tagnumber 1]]American Brewing Co., Inc. (OTCBB:ABRW) had a tough end of the past month as it slipped a massive 46.77% and recorded more than 10 times its average trading volume over the course of a single session.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]As we stated in our previous article, the reason for this was nowhere to be seen and it all seemed rather odd. The company itself issued a press release on October 2 commenting the unusual activity and they too had no idea for its cause, but stated that “[[tagnumber 6]]no officers or directors have sold any shares of common stock in the last 12 months[[tagnumber 7]]”.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Furthermore, the balance sheet of [[tagnumber 12]]ABRW[[tagnumber 13]], while not so good, are still decent considering the current market cap of $6.5 million is way smaller than a lot of the companies in the OTC markets and don’t suggest such big stock price movements.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Here is what [[tagnumber 12]]ABRW [[tagnumber 13]]had to show at the end of the second quarter.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 23]] [[tagnumber 24]]cash: $266 thousand[[tagnumber 25]] [[tagnumber 24]]current assets: $351 thousand[[tagnumber 25]] [[tagnumber 24]]total assets: $1.29 million[[tagnumber 25]] [[tagnumber 24]]current liabilities: $652 thousand[[tagnumber 25]] [[tagnumber 24]]quarterly revenues: $267 thousand[[tagnumber 25]] [[tagnumber 24]]quarterly net loss: $225 thousand[[tagnumber 25]] [[tagnumber 36]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]More recently we have seen some optimistic press releases from [[tagnumber 12]]ABRW[[tagnumber 13]]. On October 8 the company announced that they have been approved for distribution in [[tagnumber 12]]670 private stores[[tagnumber 13]] in [[tagnumber 12]]British Columbia[[tagnumber 13]] and are awaiting approval for a further [[tagnumber 12]]197 government stores[[tagnumber 13]].[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The news were received well with investors as the company began to climb and has registered a single session in the red since then, while slowly regaining its value. On Wednesday the company issued a letter to its shareholders containing information about the progress the company has made since the beginning of the year and future plans.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This brought investor attention as the ticker gapped up to a $0.50 open closed the session with a 19.54% gain at $0.52. The amount of shares was also decent considering the stock’s average and the 431 thousand that changed their owners generated $223 thousand in dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]][[tagnumber 12]]ABRW’s [[tagnumber 13]]ascent, however, came to a halt yesterday as the company registered absolutely no percentile movements and the volumes were laughable. As always, it is imperative that you do your due diligence and weigh out the risks before making an investment decision.[[tagnumber 2]]
At the very start of the year Biozone Pharmaceuticals Inc (OTCBB:BZNE) sold the entirety of its operational assets to MusclePharm Corp. (OTCMKTS:MSLP) for a total of 1.2 million common shares. What was left was a shell that immediately performed a reverse merger with the private company Cocrystal Discovery, Inc and after a name and ticker change Cocrystal Pharma, Inc. (OTCBB:COCP) was formed.
The new company is focused on the development of new antiviral therapeutics geared mainly towards Hepatitis C and influenza. In order to gather the necessary funds for the arduous process of drug development COCP performed a private placement and sold 5.5 million shares and 5.5 million warrants with an exercise price of 50 cents for total proceeds of $2.75 million. In June they boosted their balance sheet even more by selling half of the MSLP shares at 9 dollars each. So let’s see what the financials of the company looked like as of June 30:
• $4 million cash
• $10 million total current assets
• $6.9 million total current liabilities
• ZERO revenues
• $1.38 million loss from operations
As a whole the numbers are quite encouraging. The cash reserves are adequate and will keep the company going for now. Not to mention that at the start of the month they sold another 250 thousand MSLP shares for $2.5 million.
COCP‘s appeal is further increased by the fact that its biggest shareholder is none other than Dr. Philip Frost, the Chairman of Teva (NYSE:TEVA) and CEO of OPKO Health, Inc (NYSE:OPK). Both companies have made investments in Cocrystal. According to the Schedule 13D form filed back in August Dr. Frost owns around 48% of the company.
Despite the positive factors the chart performance of the stock has been far from stellar. In fact it dropped from around 60 cents to a low of $0.25 in just 4 months. In August it managed to recover some ground but still remained at around 40 cents. During the last five session things have once again been heating up though. On Wednesday COCP closed at $0.44. Thanks to a PR issued yesterday the positive momentum behind the stock got even stronger resulting in nearly 1.3 million traded shares, amount that is more than 5 times higher than the average for the company. At the end of the trading day the stock had gained 9% and was sitting at $0.48.
The PR that sparked the enthusiastic buying talked about a new screening technology for the Ebola virus. Despite being somewhat of a fluff press article any mention of the deadly virus attracts the attention of the market. But how long will the current excitement around the stock last?
Well, COCP has already made a considerable surge up the chart and investors might become tempted to lock in their profits. The company is planning to submit the regulatory filings to initiate clinical trials for the hepatitis drug in early 2015 while the filings for the influenza drug are scheduled for December, 2015. Without fresh news the stock could once more stagnate.
Cellceutix Corp (OTCMKTS:CTIX) may have broken its positive streak on Wednesday, but yesterday it more than made up for the 0.33% dip. The stock racked up quite the volume – 1.6 million shares, with a trade value of over $5 million, and surged 6.33%. CTIX hit a new 52-week high closing at $3.19.
The stock’s ascend should come as no surprise, as the company issued a press release yesterday. The PR disclosed some good news about the top-line results for the Phase 2b clinical ABSSSI trials. The trials began in February and CTIX announced that they are positive. According to the PR, due to this data CTIX has decided to begin Phase 3 ABSSSI trials in 2015. The company fails to specify when in 2015 exactly, so hopefully for investors, their next quarterly will shed some light on the matter.
The release also announced CTIX‘s intentions of taking part in a conference held in Denmark on April 25, 2015. There the company will give a presentation on the aforementioned Phase 2b clinical trials.
Until CTIX files its next 10-Q, let’s take a look at their latest available report – their 10-K. It covers the fiscal year ended June 30 and it shows numbers typical for clinical stage pharma companies. They showed substantial net loss and working capital deficit, and naturally, no revenues.
What potential investors should keep in mind is that the products CTIX is currently developing “are not likely to be commercially available for several years”. What’s more CTIX doesn’t expect to “complete the development of a product candidate for several years, if ever”. For investors these statements mean that they will have to get used to seeing similar figures in CTIX‘s coming reports, since they are unlikely to change any time soon.
Investors should familiarize themselves thoroughly with the details surrounding CTIX, before deciding whether or not to commit to its stock.
Let’s not beat about the bush, Falconridge Oil Technologies Corp (OTCMKTS:FROT) is currently the target of a paid promotion. An entity called Eclipse Marketing has set aside a total of $150 thousand and Charles Moskowitz (one of the people touting Virtus Oil and Gas Corp. f/k/a Curry Gold Corp. (OTCBB:VOIL)) has set up a landing page.
The word is being spread around through the message boards and social media and although the pump experienced a slow start, it’s finally starting to pick up some speed. Yesterday, investors traded more than $265 thousand worth of shares and FROT gained 1.4%. It’s currently sitting at $1.07 which goes to show that more and more people are starting to trust Mr. Moskowitz and his $5 per share price target. So, can FROT reach the promoter’s projections?
We’re about to find out. One thing is for sure, though – not everything in the landing page corresponds to reality. At one point, for example, Mr. Moskowitz writes that FROT “makes money no matter what”. According to the latest 10-Q, however, that’s definitely not the case. Here’s what the company recorded on August 31:
- cash: $979
- current assets: $11,580
- current liabilities: $1.8 million
- quarterly revenues: $1,497
- quarterly net loss: $57 thousand
The figures above are not really in line with Mr. Moskowitz’s projections and they’re definitely not corresponding to the market cap which, at yesterday’s close, stands at around $52 million.
Nevertheless, the hype and excitement created by the pump has managed to push the stock this far up and we’ve yet to see if the dreadful financials, which were published after yesterday’s closing bell, are enough to scare the investors away.
A thing that we do know for sure, however, is that there is one more thing that could push the price down. Curious to find out what it is?
Take a look at FROT‘s first ever 10-Q. It covers the period ended February 29, 2008 (back then, FROT was known as Ameriwest Minerals Corp) and it shows that six years ago, the company’s financial situation was just as horrific as it is right now. That, however, is not important. What should be of interest for you is the Common Stock section which can be found on Page 8. In there, you’ll read that on February 18, 2008 the company sold a total of 3,250,000 shares of common stock at $0.02 per share. As is often the case with promoted OTC companies, there was a forward stock split (a 6 for 1 effectuated in December 2010) which means that the people who got the aforementioned 3,250,000 shares could now be holding up to 19,500,000 shares of FROT common stock.
To put things into perspective, this is around 40% of the issued and outstanding stock of a $52 million company and it was bought for just $65 thousand.
We’ll leave it up to you to decide what this means for FROT.