As you may have noticed, I am a staff writer for OTC Wiki. There are so many interesting companies traded on the OTC (an endless supply for us writers) and that is why I focus my analysis on these companies. Micro-cap stocks include many companies that will bring disruptive technologies to market, as well as traditional consumer product companies. And of course, there is everything in between. However, while there are thousands of companies traded on the OTC, there are very few that are suitable for investing. Investors need to be very careful, and proper due diligence is essential when investing in penny stocks. OTC Wiki is a great place to find out about these companies.
- A Skeptical Look at Cannabis Companies
- American Battery Technology Company – Charged Up and Ready to Go
- Cresco Labs: Your Next Cannabis Investment?
- Electrovaya - Infinity and Beyond
- Else Nutrition - Seeking the Formula for Baby Food Success
- Four Things Nintendo Has Going For It
- Gold Mountain Finally Delivers the Gold
- Graphene Manufacturing Group - Green Tech That Every Investor Should Know About
- Helium One - High Expectations
- MNSEF - Magnis Energy Technologies Limited
- Neptune Digital Assets Corp - Betting Big on Bitcoin
- Questions and Answers from the Final Frontier of Onshore Oil Exploration
- Relief Therapeutics - Acquisitions, Approvals and Revenue
- Solar Integrated Roofing - Growth Powered by Acquisition
- Talon Metals – Partnerships Paving the Way to Success
- Texas Mineral Resources Corp
- Trillium Gold Mines - A Shining Star the in Red Lake Mining District
- Vestas – A Key Player In The Pivot To Renewables
- Zinc8 Energy Solutions - Innovations in Long Term Energy Storage
Fortress is not profitable and unable to scale it's way to profitability because the cost of revenue is more than the revenue generated. A $50+ million market cap cannot be supported even if they manage to balance revenue with expenses. And to top it off, they recently added $25 million in convertible debt. This will result in massive dilution.
Ascent Solar Technologies
This company has been around for over 15 years, has very little revenue, and is still spending millions on R&D. They also have a history of dilution and reverse splits.
There are two significant aspects when evaluating CGX. The first is the potential for a commercial discovery. In that regard, I think things have not gone as well as hoped, however, there is still a chance that they find commercial quantities. It is hard to say what that likelihood is, but I think the odds have declined significantly based on the fact that they did not wireline log or flow test the first well. Whether this is due to well conditions or only finding minimal oil is an important question which we do not have an answer to.
The other significant aspect in evaluating CGX is their financial situation. They spent $140 million on the first well and have very little to show for it. Drilling another well will require massive dilution, especially considering the price collapse on the latest operations update. It seems to me that their only realistic hope is a JV. Unfortunately, with the poor results of the first well a JV seems unlikely.
If the stated acquistion occurs as planned, and they continue with this new strategy, and get rid of the convertible debt, then maybe they are worth a look. I suppose that is not much of a case for bulls but it is a potential best case scenario.
G6 seems to have a good place in the graphene market, with many products, multiple patents and significant sales. I recognize that they are an established company in a new and exploding industry. The issue I have is that all of these positives mean nothing if they do not result in revenue and profits. I'm in wait and see mode on this one. I think it is worth keeping an eye on, but I need to see more execution before taking the plunge.
Irregardless of fundamentals and medium to long term outlook, this stock has been beaten down by shorts after the Hindenburgh report, and it will continue to suffer. Once the shorts target a stock they will not let up. And don't count on a short squeeze to bail it out. Too many shares available and the market cap is already high, but not high enough for the WSB crowd to jump in.
This seems too good to be true. And at a market cap of almost $200 million this stock has a lot of room to fall.
Jones Soda Co.
THC infused soda. And they are only competing with the one million other cannabis products that have popped up like cockroaches. I'm not saying it won't sell, but is this really the path to profitability? Even if somewhat successful, will it be enough to really change the outlook for this company?
This is one of those "revenues and profits are right around the corner" type stocks. The fact is most of them never actually make it happen. Revenue peaked in 2019 and is on the decline. With the loss of a couple European naval contracts they will likely continue to decline.
Note that the press release announcing the Memorandum of Understanding with Siemens does not include the Siemens ticker symbol or an about section at the end of the release. This is likely because Siemens would not allow it, indicating that the arrangement is not significant to them.
A reverse split is never a good thing and 10,000 to 1 is crazy high. I expect share price will continue to tank with more shares being issued to cover operating expenses. I do not see any prospects for actual revenue.
If you are looking for a way to invest in China, this is a good option. They have several lines of business in multiple different industries, an established presence and they are profitable.
Maybe they are legitimate endeavours with revenue generating potential, but I consider it a huge red flag when a company starts down the cannabis or blockchain road. In this case, they are pursuing both which only makes me more concerned that they see their business model failing.