Discovery Minerals Ltd. (OTCMKTS:DSCR) Riles Up Investors with More MMJ Promises

Discovery Minerals Ltd. (OTCMKTS:DSCR) continued its upward march after restating its promise to go through with a cannabis partnership. DSCR signed a letter of intent with VPR Group, Inc., thus securing a place in the medical marijuana market. After a small correction at the end of February, DSCR continued with the gains, adding more than 11% on Tuesday to $0.0039, on buying volumes above $1.18 million. DSCR0305.png

DSCR will still have to finalize the agreement, and that is scheduled for the middle of March. Whether the venture would succeed is a matter of the future, but for now, DSCR still has potential news to share, and its stock is underpriced enough, and also shows a positive reaction to updates. Added to this is the diversified position that DSCR claims, with interests in oil and gas, precious metals and even eco-energy. Added to this is a still unspecified product in medical marijuana, though DSCR promises it would utilize some of the distribution channels of VPR Group. LATF0305.png

Financially, DSCR is not amazingly well, so all of the above promises are still in a preliminary stage. DSCR reveals:

  • $15,000 cash
  • Zero revenues for 2012 and 2013
  • $656,000 total current liabilities
  • $602,000 annual net loss

Despite the dismal picture, investors’ forums show amazing optimism, awaiting further MMJ news from the company, as well as hanging on to a higher ledge.

Still, the drama around DSCR is playing out in the double-zero range, and other stocks managed to move out of there faster, into more respectable prices. Creative Edge Nutrition, Inc. (OTCMKTS:FITX) managed to conquer the level of a few cents, though never breaking over $0.10, for now. But the start at $0.012 led no one to suspect that the trend would continue long enough.

Marijuana companies either come in fast and fizzle out, but some turn into staples. For DSCR, it is still early to say if there is lasting demand.

In the case of Latteno Food Corp. (OTCMKTS:LATF) the low price was never an obstacle for active trading, but the ticker also remains stuck in the doldrums, being sold off almost immediately after reaching the penny levels. LATF stepped down over the last week or so, toward $0.008. The stock is attractive both for the company’s position as a household name in medical cannabis, and for the potential for strong days that arrive rather often, easily doubling the share price.

DSCR is still positioned quite high in comparison to its usual levels, and at the peak of the trend the risk is high. Compared to other tickers, DSCR may either continue with a longer run, or return to light trading- all depending on mood and news. Keeping those factors in mind, it is best to be aware that DSCR could wipe out a large part of your investments.

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