Primco Management, Inc. (OTCBB:PMCM) Pushed Up By News
Just like every other stock of a company in the medical marijuana industry at the moment, Primco Management, Inc. (OTCBB:PMCM) is having a hard time and is sliding lower and lower. The total loss it had suffered by the beginning of this week was above 42% and it looked like PMCM wasn’t going to stop.
With only one session in the green since April 1, the situation was quite grim. Yesterday, however, PMCM came out with an optimistic press release that announced the company has entered into an agreement to acquire 10 acres of land for medical marijuana cultivation in Snohomish County, Washington.
This was enough to boost the ticker up and PMCM closed 20% up at $0.0038 on a volume that was well below the average. We saw a total of 187 million shares change their owners during the session, which generated $683 thousand in trade value.
Still, the financial state of the company should be taken into account. Below, you can check the numbers from their annual report for 2013.
- cash: $64 thousand
- current assets: $1.3 million
- current liabilities: $2.2 million
- revenue: $72 thousand
- net loss: $4 million
Considering the fact that the company’s inception dates to October 9, 2012, we become very worried looking at the $2.2 million in liabilities it has acquired over such a short period of time. The revenues compared to the net loss also bring us some disturbing thoughts.
And then there are the people on investor message boards, that remember when PMCM‘s current CEO, David Micher was CEO of Seven Arts Entertainment, Inc. (OTCMKTS:SAPX), whose stock has endured 6 reverse splits in the past 5 years.
In any case, be sure to do your own due diligence and weigh out the risks before making an investment decision.