Minerco Resources, Inc. (OTCMKTS:MINE) Jumps After Crash
Minerco Resources, Inc. (OTCMKTS:MINE) jumped all the way up to $0.02 yesterday, after announcing that it had entered into a material definitive agreement for the restructuring of its debt.
MINE, along with all other companies in the marijuana sector, had a rough ride to the bottom of the charts in the crash that followed the suspension of Growlife Inc. (OTCMKTS:PHOT) by the SEC. Interestingly enough, MINE‘s market standing didn’t suffer nearly as much as that of other companies in the same branch.
MINE had two sessions that each took it 20% down, but now it is approximately 50% up on a 3 million dollar volume. So what caused the sudden spike of support from investors?
It could have been the news that the company has made a step towards restructuring the debt it accumulated to fund itself last year. Seeing as how we’re talking about approximately $25 thousand, that seems unlikely. The fact that share prices had fallen to $0.0123 might have finally convinced investors that they should stock up on MINE shares. It could have just been a random fluctuation of a volatile market.
Either way, MINE stock is presently soaring at $0.02, and the ticker just seems to be gathering momentum. However, investors should never jump on the marijuana train before considering the information available on the company, and in MINE‘s case, due diligence may bring up some reasons for doubt in the company.
For instance, MINE‘s latest Quarterly, for the period ended Jan 31, 2014 certainly wasn’t something to be hyped-up about.
- Cash – $24 thousand
- Total assets – $85 thousand
- Total liabilities – $2.8 million
- Quarterly sales for the period ended Jan 31, 2014 – $5 thousand
- Quarterly net loss for the period ended Jan 31, 2014 – $34 thousand
As usual, investors are advised to tread cautiously when dealing with high risk stocks, such as MINE.