Stevia Corp. (OTCMKTS:STEV) Sinks Despite Partnership Announcements

Stevia Corp. (OTCMKTS:STEV) has gone beyond the first good days when it announced potential cannabis growing facilities. The ticker continues to sink, and on Monday it logged net losses of another 12% to $0.135, as buying accelerated to $415,000. The trading has been subdued for this stock, as well as for the most active MMJ selections, which barely vaulted the $6 million daily trading volumes. STEV0428.png

STEV declined markedly after its latest press release, in which it described a partnership with two food companies. Since then, the PR silence translated into lower interest and volumes, reaching more than 50% losses since the peak at $0.30.

Still, investors’ forums have always voted confidence for this ticker, since the company has shown some success with its stevia growing activities. On the other hand, whatever the company does is usually glamorized, leading to a disproportionate leap in prices. TRTC0428.png

The biggest disproportion is between the company’s promises and plans and the financial data, which hold serious deficits:

  • $85,366 cash
  • $2.13 million total current assets
  • $2.5 million total current liabilities
  • $388,746 annual revenues
  • $857,342 net loss

But this situation is not unusual for OTC companies, and most MMJ tickers show a much more dismal picture. For now, STEV runs on hope, and from the current levels could make a recovery. Unfortunately, the general Marijuana index shows that the sector is still stuck in the doldrums, waiting for more positive news to stage another rising tide for all tickers. The newly calculated MMJ index is still unable to make a decisive upward trend after peaking and crashing a month ago. 

STEV is in the category of agricultural tickers, and in this it resembles the potential of Terra Tech Corp. (OTCBB:TRTC). This ticker was one of the fastest movers in March, along with Green Gro Technologies, Inc. (OTCMKTS:GRNH). Unfortunately, the two stocks also suffered from the withdrawal of confidence. TRTC is down by more than 50% from its peak to current levels of $0.60, and while small cap companies have crashed up to 99% sometimes, this is also an extremely painful loss. 

GRNH looks less dramatic, though it failed to reach the dollar levels as expected, sliding down to drift around the 30-cents range.
If you prefer STEV for its longer-term potential, instead of the possibility for rapid daily gains, this may be the right choice. Still, plan your time frame accordingly, unless you can wait out the slow period that affects STEV and the sector as a whole.

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