Yesterday wasn't the best day for the cannabis sector as a whole. The majority of OTC-listed pot stocks registered red sessions, with Plandai Biotechnology Inc (OTCMKTS:PLPL), Strategic Global Investments, Inc. (OTCMKTS:STBV) and Latteno Food Corp (OTCMKTS:LATF) being the biggest losers. XTRM, on the other hand, surged by as much as 92% and logged a dollar volume of around $1.15 million. So, what is the reason for this?
The pumpers are certainly playing their role. As we mentioned in our previous article, shortly after XTRM's transformation, Stock Goodies (who received $6 thousand) started sending in their alerts over the email. Two other promotional outfits - Penny Stock Spy (who received $15 thousand for their efforts) and Stock Hideout (who pocketed $8 thousand) - have now joined the team.
But the emails alone aren't enough to give the ticker such a push. XTRM are helping along by bombarding their Yahoo! Finance profile with numerous press releases. They have made no less than four announcements since we last wrote about them and the optimism spurring out of the PR's is astonishing. On February 6, XTRM said that they are going to come up with a special mobile processor that can turn hemp into biodiesel. Four days later, they said that the company has received pre-approval for a non-convertible line of credit that would amount to as much as $5 million. They say that they'll use the money to buy hemp cultivation, medical marijuana and commercial real estate.
It seems that things really are moving at a break-neck speed at XTRM since yesterday they made yet another announcement. Apparently, they have already found a 40 acre property that will suit their needs perfectly and have now opened an escrow for it.
All in all, the developments seem positive and we should note that if everything goes according to plan, XTRM could turn into quite an interesting stock. The problem is, this is not the first series of optimistic press releases and their previous promises of a bright future didn't exactly materialize.
As we mentioned a week ago, they spoke about joint ventures, acquisitions and mergers with numerous companies that were advertized as "profitable", "established", and "noteworthy". In the end, none of the deals got closed and the ticker took a beating.
The biodiesel business is far from flourishing as well. When you compare the report covering Q3 of 2013 with the one from the corresponding period of 2012, you'll see that the revenues have dropped by as much as 50% year-over-year. The rest of the statement doesn't look like much as well and the number of common shares issued over the last twelve months is absolutely shocking.
Still, you're thinking, there's a video on XTRM's website in which a number of celebrities are urging you to "check out" the stock. If the rich and famous are recommending the company, then surely, there must be something to it.
Before you get too excited, however, you should consider one more thing. The aforementioned video was uploaded on YouTube by someone who calls himself John Stock. We had a quick look through the rest of his videos and we saw that on March 7, 2013 he published another clip in which none other than Mike Tyson tells you to "check out" Immunotech Laboratories, Inc. f/k/a International Technology Systems Inc. (OTCMKTS:IMMB). We did and we found out that since Mr. Tyson's invaluable advice, IMMB has dropped by no less than 85%.