Minerco Resources Inc. (OTCMKTS:MINE) Falling Quietly
Friday marked Minerco Resources Inc. (OTCMKTS:MINE)’s fourth red session in a row. This one cost the company another 8.62% of its market value.
MINE had a good run mid to late April, but the investor phone call put an end to the company’s unchecked growth. Since then, MINE has lost 56% of the high it had gained during its upward run, and has now fallen to a low of 0.0159.
The call was highly anticipated because it was supposed to throw some light on the company’s newest branch of business – the marijuana infused fizzy drinks, whose announcement got MINE going upwards in the first place. Unfortunately for MINE enthusiasts, that did not happen – the company decided to keep information “close to the vest”, revealing next to nothing about the fabled Herbal Collection product line.
This move, along with vague statements that the company is going to “let our partner take the lead”, more or less cost MINE the investor’s support. As the chart clearly indicates, the company’s been in decline ever since. MINE stabilized for a couple of sessions when it announced that it had acquired $2 million in funding to give itself some breathing room. Obviously that state of developments didn’t last very long, and it’s likely that things are going to get even tougher for MINE from now on.
To elaborate – Fusion Pharm Inc. (OTCMKTS:FSPM), a well known and traded marijuana stock, was suspended on Friday. As a result the whole marijuana branch was painted red, just like when Growlife Inc. (OTCMKTS:PHOT) got suspended. Such crashes are usually enough to make investors weary of marijuana stocks for a while, before the pot fever inevitably takes hold of the market again.
However, this time it looks like the SEC’s issued a clear warning to marijuana stock enthusiasts and pot-stock companies alike – pumps and misleading PR will no longer be tolerated. Investors would do well to consider this fact with the full knowledge that, at least the latter, is a fault that afflicts most companies in the marijuana branch.
With this in mind, marijuana stock investors are advised to be extra careful and diligent when they consider the situation at hand. Do they really want to commit to the stock of a company that may be suspended or dragged to the bottom of the charts by a sector wide crash caused by another company’s suspension, at any given time?