Vega Promotional Systems, Inc. (OTCMKTS:VGPR) Seems Relaxed, Adds to Price

Vega Promotional Systems, Inc. (OTCMKTS:VGPR) looks happier in the past few days, as it is speeding ahead despite the general slowdown in the MMJ sector. Recently transformed into a pot stock, VGPR grew a net 30 times since the beginning of March. This Monday, the ticker made a relatively small daily addition of around 11% to $0.0123, as dollar volumes held their mid-range levels at $932,000. VGPR0422.png

It seems that VGPR is still reaping the benefits of the Cannabis Expo in Denver, but we have no way of knowing how long the positive trend would continue. Still, VGPR is one of the few sub-penny tickers that managed to vault the one-cent level, as expected. Investors’ forums are reacting with positive comments to the rising trend, which also looks driven and rather stable, at least for now.TRTC0422.png

VGPR may boast with its promising bio-coal and bio-char products, but so far the financial backing is somehow weak:

  • current assets: $18 thousand in cash
  • current liabilities: $134 thousand
  • no revenue since inception
  • yearly net loss: $120 thousand

What is more worrying is that VGPR is standing on a relatively high ground, and the ticker’s movement relies too much on publicity. We can’t predict when VGPR would come in with its next update, and the previous rock-bottom positions are close behind.

For now, despite the detailed website, we can’t find where VGPR sells its products. Not to mention that there are already enough retailers of biochar on Amazon.com, so the position of VGPR is not unique at all, and neither it is a solid link to the marijuana sector. Biochar is merely an agricultural product, and it is a matter of spin to mention that it could be an essential addition for cannabis growers.

Still, VGPR may hold some of the charms of companies that sell growing supplies. This is what boosted the rising trend for Terra Tech, Corp. (OTCBB:TRTC). In the past days, TRTC is trying to wipe out some of the losses, as it inched upward toward $0.74. But TRTC is suffering, despite its inclusion in the Marijuana index, as the initial enthusiasm wore off and the rising trend turned into a sideways drift.

To compare VGPR, it may be useful to look at Latteno Food Corp. (OTCMKTS:LATF), the ticker that is notoriously unable to clamber over the penny levels. LATF was recently taken down from the Marijuana index, and continues to drift sideways around $0.007. The promises and sites related to LATF are even more abundant than those of VGPR– but the company keeps investors waiting. While LATF has afforded some good running trends or even phenomenal gains in a single day, the ticker remains under serious downward pressure, and relies too much on PR to cling to its positions.

So if you like VGPR for its sudden cannabis fame, keep in mind that the events may be limited in time, while the effect of the Denver show lasts. Despite the low price, avoid over-investing unless you can afford a serious setback.

You may also like...