Can Strategic Global Investments, Inc. (OTCMKTS:STBV) Stay Away From Rock Bottom
Even though Strategic Global Investments, Inc. (OTCMKTS:STBV) entered the medical cannabis industry, their stock’s chart performance is unlike any of the other companies’ in the sector and there is a reason for that.
The actions of the company’s management are quite controversial and raise a lot of eyebrows. In our previous article on STBV we mentioned one of the most concerning problems that any investor would see with their stock – dilution.
The absurd amount of 100 billion authorised shares for a company that is in a bad financial state and the subsequent offer of 30 billion shares at a price of $0.0001 to acquire $1 million in funding shows that the management holds little regard for shareholder value and the damage that would be caused by the dilution.
- cash: $13 thousand
- total assets: $754 thousand
- current liabilities: $379 thousand
- revenue: $476
- net loss: $316 thousand
These are figures from their report for the period ended September 30, 2013, filed under the alternative reporting standard with the OTC markets that show that the management hasn’t been doing a good work considering the revenue for the same period in 2012 was $18 thousand. And even though the company is not a SEC filer, however, it had to deal with with the Division of Corporation Finance of the authority concerning their current financing activities.
Despite all the trouble it seems that yesterday’s announcement that the company has engaged a medical cannabis consulting firm to help them with their business plan seems to have paid off for the individuals that decided to purchase shares under the offering for $0.0001 each.
After hitting rock bottom in Tuesday, the ticker jumped 300% and closed at $0.0003 yesterday on a massive volume. We saw a mind-numbing 4.3 billion shares switch hands during the session that generated $1.5 million in trade value despite the low price per share.
Today, the company updated its shareholders on the progress and it looks like they have equiped a facility after purchasing products from Growlife, Inc. (OTCBB:PHOT). Will that be enough to prevent another trip to $0.0001, however, is for time to tell.
In any case, be sure to do a lot of due diligence and weigh out the risks before deciding if STBV is a worthy investment choice.
We see that the interest in Hemp, Inc. (OTCMKTS:HEMP)’s stock has dwindled away lately and the stock is making small percentile movements while volumes are decreasing. Tranzbyte Corp. (OTCMKTS:ERBB) looks more attractive and sees some intense trading recently.
