Solanbridge Group, Inc. (OTCMKTS:SLNX): Recovery Still Delayed

Solanbridge Group, Inc. (OTCMKTS:SLNX) is already down two-thirds, and the opening of the new week does not promise a change in the red trend. SLNX slid more than 28% on Tuesday, toward $0.006, as dollar volumes barely reached above $606,000. For the whole OTC sector, trading barely vaulted $2.8 million, as even marijuana stocks are not seeing enough attention, and there are almost no alternatives from other hot industries. SLNX0514.png

SLNX did in a few short days what many other marijuana companies did in months. The pink sheet holding company quickly changed direction, announcing acquisitions in the field of medical marijuana at the beginning of May. While the deals are not yet officially announced, that was enough to create a run of 900% from $0.002 to $0.018, only to be followed by a solid block of selling, dragging the price down.SLNX0514.png

But let’s see how well this restaurant company is equipped to take over the Canadian cannabis market, as it holds:

• $500 cash
• $6 thousand current assets
• $662 thousand current liabilities
• $557 thousand revenue
• $64 thousand net loss

Despite the shaky financials, SLNX was even taken up by promoters, with a single email from Stock Aviator, landing in on May 6th. Unfortunately, only on the next day the selling began, as investors took profits, easily predicting that MMJ tickers hardly survive more than a few days of climbing. The email is for an unknown compensation, probably for free, as SLNX was selected to boost the record of this promoter.

But even at prices that bottom out, there is a range of hope. So the risk for SLNX is to attract new buyers after being considered “oversold”. There are talks of a longer-range recovery of the MMJ sector as legislation unrolls to other states, but for now there is no way to know if there would be a rising tide that could take up all stocks, as it did at the beginning of the year. The Marijuana index had yet another day in the red, sliding down more than 7%, continuing to fall even after reshuffling the criteria for inclusion.

When sub-penny stocks bottom out, it is a matter of time before at least a minor recovery. In the case of Latteno Food, Corp. (OTCMKTS:LATF), this was expected to happen at any moment. For now, the recovery is slim, as the cannabis company has sank for a long time and only managed to claw back toward $0.004.

USA Real Estate Holding, Co. (OTCMKTS:USTC) also seemed ready to boost its levels, but is only sinking as a result of the over-active promotion. USTC came in hot at a moment when the whole MMJ sector had jitters around the intervention of the SEC to suspend some of the leading companies from trading. USTC continues to sink, and ended Tuesday at $0.0011.

If you want to catch SLNX at the right moment, keep in mind that a period of price drops does not guarantee an immediate recovery, so plant the timing and size of your investments accordingly.

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