Hristina Beeva

Endexx Corp. (OTCMKTS:EDXC) Succumbs to General Bad Mood

by Hristina Beeva February 12, 2014
Endexx Corp. (OTCMKTS:EDXC, EDXC message board) succumbed to the general bad mood as many otherwise cheerful marijuana stocks had a mid-week setback. EDXC lost more than 18%, a relatively deep cut, to reach $0.235, on selling volumes of $1.03 million. The downward move came as it became clearer that for now, EDXC won't be offering any updates on its business, and the email message from Jet Life is already quite old. EDXC1202_1.png

Now, EDXC at the lower price starts to look like a bargain opportunity, so it is an even better invitation to look at the red flags surrounding this relatively new arrival into the cannabis sector. MJNA1202.png

Let's start with the company's contact info. The office address given leads us to a residential area in a desert part of Arizona, in what looks like a residential building. Nothing intrinsically wrong, but it puts a question on where the company has placed its staff and who is in charge of all the diverse activities that are listed in the company's description.

Also, despite the setbacks, EDXC is at a three-year peak, after starting its robust growth in the fall of 2013, when PR was rather active. It was then that EDXC styled itself a helper of the cannabis sector, through its diversified approach. The stock rose from the one-cent levels in anticipation of the opportunities of 2014 and the legalization of marijuana sales.

The latest financials are not too encouraging, as we mentioned before:

  • ZERO cash and current assets
  • $183 thousand total assets
  • $1.2 million total current liabilities
  • ZERO revenues
  • $22 thousand net loss

Right now, EDXC is in a similar price range to Medical Marijuana, Inc. (OTCMKTS:MJNA), the sector bellwether and a first mover, before the January madness around pot stocks. Unfortunately, MJNA reached the 26-cent level after a few days of sliding. MJNA is a weaker climber compared to others in the sector, often stagnating into a tight price range. The ticker touched the 40-cent level, but could continue no further for now, and has been sliding in the past weeks.

Green Gro Technologies, Inc. (OTCMKTS:GRNH) is yet another contender that saw extremely high activity, turning into one of the sector's favorites. Now, GRNH is back down to the 40-cent levels, after being unsuccessful in a second bid to get closer to dollar levels.

While marijuana stocks are generally bubbly, Wednesday turned out to be a pessimistic day for many recent climbers, as corrections and profit-taking shaved off double-digit percentages off many tickers. If you still want exposure to the sector, it is best to be able to afford the setbacks and not bet too much on the stability of the upward potential.

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