The marijuana field keeps sprouting small cap marijuana stocks like Primco Management Inc (OTCBB: PMCM), Medifirst Solutions Inc (OTCMKTS: MFST) and Modern Mobility Aids, Inc (OTCMKTS: MDRM) which are all trying to seek a high by playing up their connections (no matter how tenuous…) to what many consider to be the next high flying sector. But are these small cap marijuana stocks just blowing smoke at investors? Here is a quick reality check:
Primco Management Inc (OTCBB: PMCM) Aims for a High in Medical Marijuana Real EstateSmall cap Primco Management operates as an integrated entertainment company with divisions in music and film production and distribution. Primco Management also operates in various aspects of the real estate industry. On Friday, Primco Management surged 63.64% to $0.0018 for a market cap of $1.32 million plus PMCM is down 96.4% over the past year and down 82% over the past five years according to Google Finance.
What's the Catch With Primco Management Inc? According to various disclosures, at least one promoter had previously in the past been compensated $12.5k to mention Primco Management in various investment newsletters. Last Friday, Primco Management announced that the company had signed a conditional lease for the launch of its first medical cannabis cultivation center with plans calling for the subdivision of the property into up to 6 separate nurseries to be sublet to fully licensed dispensaries in Los Angeles. Final execution of the lease will be contingent upon acquiring permits from the local municipality. In addition and last Wednesday, Primco Management issued a short press release to talk up its plans to acquire properties to then be leased to licensed retailers and manufacturers of medical marijuana while in mid January, the company provided a an update to its shareholders and strategic business partners that did not mention anything about the medical marijuana business. A quick look at Primco Management's financials reveals revenues of $11k (most recent reported quarter), $4k, zero and zero for the past four reported quarters and net losses of $1,654k (most recent reported quarter), $918k, $83k and $10k. At the end of September, Primco Management had $115k in cash to cover $3,486k in current liabilities. So it remains to be seen whether getting into marijuana can help heal the company's income statement and balance sheet.
Medifirst Solutions Inc (OTCMKTS: MFST) Tries Hard to Push the Medical Marijuana FocusSmall cap Medifirst Solutions seeks innovative medical and healthcare products and technologies which are targeted to both medical and healthcare professionals as well as everyday consumers. On Friday, Medifirst Solutions sank 24.1% to $0.110 for a market cap of $1.46 million plus MFST is down 77.5% over the past year and down 26.7% since September 2012 according to Google Finance.
What's the Catch With Medifirst Solutions Inc? According to various disclosures, a transaction or transactions of $2.5k has or will occur to mention Medifirst Solutions in various investment newsletters. Last Friday, Medifirst Solutions announced that it had acquired Consumer Resources Consultants Inc., a Florida based company that provides online remote technical support to PC users. Although unrelated to the announcement, the press release did try to tie the news back to medical marijuana with the folowing paragraph:
New Markets and Growth States with legalized marijuana is a business sector in which Medifirst plans for further diversification and growth. As recently announced in Florida, a constitutional amendment was approved that would legalize marijuana for medical use, guaranteeing the measure a spot on the state's November ballot. Considering Medifirst's strong company presence in Florida, it will begin to pinpoint an entry strategy for this young multibillion dollar industry. Medifirst anticipates to be able to develop that strategy to expand to all states where marijuana is legal."
Last Monday, Medifirst Solutions announced that it will be an Exhibitor at the International Esthetics, Cosmetics & Spa Conferences held March 9th to 11th at the Jacob K. Javits Convention Center in New York City while in early December, the company announced the appointment of Dr. Ron Rubin as the Medical Director for its Boca Medical Spa in Boca Raton, Florida. A quick look at Medifirst Solutions' financials reveals revenues of $20k (most recent reported quarter), $5k, $25k and zero for the past four quarters along with net losses of $21k (most recent reported quarter), $39k, $10k and $115k. At the end of September, Medifirst Solutions had no cash to cover $233k in current liabilities. But at least Medifirst Solutions is trying hard to find a connection with the growing marijuana industry.
Modern Mobility Aids, Inc (OTCMKTS: MDRM) Has Just Entered the Marijuana SectorSmall cap Modern Mobility Aids now has a focus on the production of Medical Marijuana as a mandate was created to acquire companies within the biopharma and alternative medicine sectors targeting both innovative research and development as well as scalable licensed, manufacturing capacity in three niche market segments. On Friday, Modern Mobility Aids surged 22.83% to $0.0425 for a market cap of $6.84 million plus MDRM is up 750% over the past year and down 96.6% since June 2011 in intermittent trading according to Google Finance.
What's the Catch With Modern Mobility Aids, Inc? According to various disclosures, no transactions have occurred to mention Modern Mobility Aids in various investment newsletters. Last Wednesday, Modern Mobility Aids announced that it had appointed Mr. Samuel Hill (who is Managing Director at Goldbear Capital, a boutique mergers and acquisitions firm that focuses on raising capital for growing companies through private placements and public offerings) as a Director and CEO and Mr. Declan French as Director and Chairman of the board. However, it should be noted that the Company changed its name to Modern Mobility Aids, Inc. on April 22, 2010 with initial plans to distribute products for mobility-challenged individuals; but this month the business focus of the company "evolved with a rapid expansion strategy" in the life sciences and healthcare industry and a focus on the production of Medical Marijuana. That could be good news for investors as Modern Mobility Aids has produced no revenues; net losses of $3k (most recent reported quarter), $183k, zero and $53k for the past four reported quarters; and no cash to cover $479k in current liabilities at the end of last March. So investors might want to wait for the financials to get updated and see just what the company intends to do in the marijuana sector.
No comments:
Post a Comment