Minerco Resources, Inc. (OTCMKTS:MINE) Recovers After Slump
The stock of Minerco Resources, Inc. (OTCMKTS:MINE) had an extremely positive Friday’s session and after dropping for the previous two sessions managed to recover more than 30% of its value and returned to $0.033 per share. The company made a tremendous run up the chart that continued for 12 straight sessions of climbing and saw it rise from $0.0025 to a high of $0.045. Despite the corrections optimism seems to be holding strong and MINE is keeping its recent gains in share price.
Still, a market cap of $70 million is way too big for the company to support if momentum starts to reverse. Despite the positive PRs that talked about increased production runs of their COFFEE BOOST and RISE products on two separate occasions for now the financials show quite a different picture. After four months of commercialization MINE disclosed the following results:
• $24 thousand cash
• $85 thousand total assets
• $2.8 million total liabilities
• $5147 sales
• $34 thousand net loss
As we said in our previous article the fact that they are finally generating any revenues is rather commendable but the company has not received any of those 5 thousand in sales because under the accounts receivable line in the report sits the exact same number. Things get even grimmer when you take into account that MINE had to spend double that amount as the costs of goods sold stand at $13 thousand.
Although investors who read the 8-K form filed on March 13 in its entirety already knew that MINE had filed for a new trademark registration of “The Herbal Collection” last Tuesday the company made it official through a PR announcement. They didn’t confirm the much speculated connection between the new brand and the marijuana industry but instead announced plans to merge the venture with a private company based in Denver, Colorado.
In the same article MINE also shared details about an upcoming conference call scheduled for April 21 and during which more information about their future plans should be expected.
For now though the company remains an extremely risky bet. The stock has already risen dramatically and chasing after it may not be the best decision. Investors should also keep in mind the dilution that has been happening. More than 600 million shares were issued due to convertible notes with prices ranging from $0.0001 to $0.0004.
The stock of Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) closed last week in much the same way MINE did. After slipping down on Thursday by close to 12% TTDZ managed to reverse its momentum on the very next day and shot upwards by 31% reaching a new 52-week high of $0.0234 and ending the session at $0.0214 per share.