Investors Are Getting Fed Up with Anything Tech Media (PINK:EXMT)
It all started at the end of March when some emails arrived in an attempt to hype EXMT‘s shares to new heights. The company made an announcement that they are entering one of the hottest business sectors in Pennyland right now – medical marijuana. This boosted the excitement around the ticker and on March 27 it absolutely exploded earning as much as 190% in a single trading session. Since then, there have been a few ups and a few downs but it’s fair to say that EXMT failed to live up to the expectations and, while the price has not dropped as suddenly as we were expecting, EXMT seem to be heading towards the pre-pump value.
This shouldn’t have happened. EXMT have been hard at work publishing all sorts of optimistic press releases that were supposed to keep the excitement going. Yesterday, for example, they announced that they have completed the next in a very long line of acquisitions but, as we mentioned, this didn’t have the desired effect on the performance of the stock. Reading through the message boards dedicated to EXMT, we can see that the number of people who are still convinced in their success is shrinking rapidly. Still, can they make it?
Let’s say that we have our doubts. The merger that was completed yesterday was with a company called R-Quest Hydroponics. The press release states that R-Quest have developed a brilliant hydroponic system and that growing medical weed (or whatever it is that you want to grow with it) is as easy as plugging the device into the outlet and taking a nap.
Now, we’re sure that this is extremely convenient for the people who intend to use that sort of thing, but the shareholders and the people who are interested in investing in EXMT‘s shares are more concerned with other things. Like, for example, the cost of the system and how much money will it bring to EXMT‘s bank account. And while the PR states that the management team will be publishing the projected revenues from this revolutionary system really soon, we can’t really be sure that it’s even for sale right now.
R-Quest’s website consists of no more than three pages and while there is a data sheet which contains all sorts of information like, for example, the dimensions of the device and its weight, there is no price and although we spent a great deal of time looking for it on online shops, we just couldn’t find where the regular person can buy the contraption. Something tells us that it’s not really ready for mass production.
In addition to this, the announcement that EXMT made yesterday contains no details about the deal itself. The shareholders have no way of knowing how much did the company spent on the acquisition but, having in mind the financials that we found in their latest quarterly report, we’re struggling to even imagine their current assets amounting to just $1,798 were enough to cover the merger.
All in all, history is repeating itself. Back in January we saw the exact same thing – a few emails, and a lot of PR action, new acquisitions, new business sectors etc. The result is evident from the chart – a quick jump while the hype was still on and a significant fall once it stopped. Will the same thing happen again? It certainly looks like it.