Minerco Resources Inc. (OTCMKTS:MINE) Jumps On Press Release
Minerco Resources Inc. (OTCMKTS:MINE) made another one of its hype-driven jumps on Friday, rising 21.83% on the news that it has cut $1 million from its current liabilities.
MINE‘s June 13 press release, bore all the principal signs of marijuana PR. It was vague, boastful, uninformative and confusing for anyone that does proper due diligence, but still managed to push stock prices all the way up to $0.0173 in the span of a single session.
Here are some of the things that were obviously wrong with it. First off – it declared that the company has “reduced its short term liabilities by approximately $1,000,000”. The press release states that this debt was accumulated mostly “in the form of Convertible Promissory Notes”, but says almost nothing else on the matter at hand. How was said “drastic, and significant” reduction of the company’s convertible debt achieved? Which were the promissory notes in question? Who were the owners of the notes, and what were the terms of their new agreement with MINE? None of these very important questions was answered.
Furthermore, in this particular announcement, MINE clearly stated that information on the matter can be fount “documented in Minerco’s filings with the SEC”. A quick check reveals the fact that a filing on this particular matter does not exist to date.
Until it is filed, there’s no real way for investors to know if this alleged million dollar debt reduction is real, or just another publicity stunt aimed at promoting the company’s stock. If it turns out to be the former, congratulations will certainly be in order, as toxic debt reduction is something MINE desperately needs in order to be taken seriously. However, if the aforementioned filing does not turn up, the company will probably be headed straight down to the bottom of the charts, fast and hard.
Another filing that investors would probably want to check out before jumping on MINE stock as soon as the market opens, is the company’s latest 10-Q that should be out TODAY. The numbers in it should be able to give some idea about MINE‘s progress so far and will probably be indicative of its commercial potential for the near future.
Monster Arts Inc. (OTCBB:APPZ) was the other big OTC chart-climber this Friday, jumping 66% in the span of a single session.