Plandai Biotechnology, Inc. (OTCMKTS:PLPL) Continues Its Climb
Plandai Biotechnology, Inc. (OTCMKTS:PLPL) had a slow month and a half since mid May, but now it’s on the rise again, with amazing dollar volumes and two digit jumps, the last of which took the ticker all the way up to $0.6.
A jump of 22.45% for PLPL seems unreasonable at this point in time, especially seeing how there has not been any developments on the company in more than a week. Still, this is happening right now, as investors are getting high on the hopes that the company is on the verge of releasing a piece of PR that will launch it sky-high again, in a manner reminiscent of PLPL‘s ascent in February.
Sadly for dedicated investors, even if PLPL does pump out a piece of marijuana PR, the momentum it will gather will be short lived, for one simple reason. The company’s cannabis projects have not really had any progress, thus any news it can pump out on the matter is likely to be vague and boastful, but ultimately – inconsequential. The bottom line is – until PLPL finds a way to conduct serious medical marijuana research, its hands are tied.
Worse yet, even if the company does manage to enter a development stage for a medical marijuana product, OTC Markets traders should know better than to expect immediate results from PLPL. Pharmaceutical developments and tests before a product can be brought to the market usually take years, as well as an aggregate of finance that PLPL simply does not currently have available. The company’s latest quarterly report, for the period ended March March 31, 2014 showed:
- cash – $626 thousand
- current assets – $635 thousand
- current liabilities – $557 thousand
- revenues – $12 thousand
- net loss – $3 million
True, on June 2 PLPL received a $1.3 million grant from the South African Department of Trade and Industry, which is certainly a big step towards improving the company’s balance sheets. But how long will this cash last? When will PLPL make its plans for the future known? How long can PLPL enthusiasts run on anticipation alone? Only time will tell.
Another OTC Markets penny stock that registered a serious upward movement yesterday is Vega Biofuels Inc. (OTCMKTS:VGPR), which rose 28% in that session.