American Green, Inc. (OTCMKTS:ERBB) Evades 52 Week low

American Green, Inc. (OTCMKTS:ERBB) managed to gain another 10.24% on Friday, in spite of the low dollar volume, and now looks to be headed back above the $0.015 mark. But how long could that last?

Although it is impressive that ERBB is currently on the rise in spite of the lack of news on its promised October roll-out, the fact that there have been no updates is somewhat suspicious. Now, with no obvious development in sight, ERBB is certainly treading on thin ice as this latest deadline for the release of multiple ZAZZZ machines throughout the US draws near.

At this time, investors seem to be getting hyped about “seasonal trends” – after all, the beginnings of the two previous marijuana hypes came in the winter months of 2013 and 2014. However, investors would do well to remember that both green rushes were made possible by unique and groundbreaking events – and it’s highly unlikely that marijuana will be legalized in the US for the first time in history, for two years in a row.

Some fervent pot supporters are even getting excited about the prospect of the medical uses of marijuana as an Ebola countermeasure. Which is simply ridiculous – although there seems to be proof that certain cannabinoids could be used as an immune system boost, there is no evidence whatsoever that weed can prevent that deadly pathogen. Realistically, this specific idea may be more grounded in hype, wishful thinking or pipe dreams than reality.

Needless to say, investors need to be cool headed and well informed when dealing with OTC Markets pink-sheets penny stocks, and any due diligence done on ERBB‘s latest financial report reveals some pretty unimpressive numbers:

  • Cash – $202 thousand
  • Total current assets – $370 thousand
  • Total current liabilities – $5 million
  • Revenue – $314 thousand
  • Net loss – $2 million

Investors would also do well to pay extra attention to page 13 & 14 of said financial section, because it confirms that toxic funding is still popular with ERBB. More than $1 million worth of debt has been issued over the three months ended June 30 alone, with notes converting into common shares at the ridiculous price of $0.0005.

Another OTC Markets penny stock company that jumped above and beyond all expectations on Friday is PositiveID Corp (OTCMKTS:PSID) with a 30.77% rise in that session alone.

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