Stevia, Corp. (OTCMKTS:STEV) Accelerates Losses
Stevia, Corp. (OTCMKTS:STEV) continues to seek direction, as leaps upward are followed by days in the red. Now, STEV is on the downward path again, sliding more than 14% on Friday, toward $0.144, on selling volumes above $516,000. On Monday, the ticker opened strongly downward again, for now wiping out the hope that the company would easily climb above the $0.20 range once again.
Despite the good news on harvest and potential earnings, STEV seemed to be already discounted, and continues to follow the generally pessimistic trend of marijuana companies. For now, STEV has not offered corporate updates, although the new week may offer some hopes of further activity. Right now, there is some investors’ talk of buying up the new lower prices, as STEV is still competitive compared to other MMJ businesses that plan to start their own production.
And while STEV has experience with stevia, the natural sweetener, it used the ingredient in fashion to boost its stock price a bit beyond the comfortable levels, causing a spike and a crash in the fall months of 2013. The new, bigger climbing wave on the announcement of medical marijuana growing caused STEV to shoot upwards from the 10-cent levels to a peak at $0.30, which was quickly followed by a 50% correction.
STEV is better-padded compared to other potential cannabis growers. Also, it boasts a deal to deliver stevia to a so far unnamed large company, but even without that deal, the financials are as follows:
- $85,366 cash
- $2.13 million total current assets
- $2.5 million total current liabilities
- $388,746 annual revenues
- $857,342 net loss
At this price range, investors may find several other MMJ tickers that were extremely sought-after at the peak of the stock boom in February and March. Currently, GreenGro Technologies, Inc. (OTCMKTS:GRNH) manages to hang on around the 25-cent levels, although the best days are over and trading volumes remain much slimmer.
The fall in STEV is comparable to that of the general MMJ index, which has been in a bad way in the last few days, losing between 5 and 8% each day. The general index level is down to $3.50, after sliding another 8% on Friday.
But other tickers are making even more dramatic moves. USA Real Estate Holding, Co. (OTCMKTS:USTC) not only left the penny levels, but quickly burrowed down to triple-zero positions, despite a few optimistic days of buying that led the price to $0.003. Now, USTC has crashed to $0.009, with no signs of recovery, reeling from the disproportionate promotion.
We still don’t know when the general pessimism would stop affecting marijuana stocks, but it is best to be aware that the days of easy gains are in the past. For now, it is best to do your own estimation and find ways of minimizing the losses.