Georgi Kamburov

Investors Return To The Stock Of ENDEXX Corp. (OTCMKTS:EDXC)

by Georgi Kamburov March 18, 2014
4EDXCchart.pngIn a rather unusual for the pennystock world move the management team of ENDEXX Corp. (OTCMKTS:EDXC, EDXC message board) has decided to abstain from issuing an endless stream of fluff PR articles in order to hype up their stock - in fact since the start of the year there have been only 3 press releases. It seems that this was the right decision and despite the heightened volatility of the stock it has been able to keep most of its gains.

EDXC first attracted the attention of the market through its deal with Cen Biotech, a division of one of the most heavily traded marijuana pennystocks - Creative Edge Nutrition, Inc. (OTCMKTS:FITX). They chose to use EDXC's M3Hub Seed to Sale Tracking platform in their facilities and the news managed to create such strong optimism among traders that the stock soared upwards to firmly place itself above the 20 cents mark.

Even the quite depressing quarterly report filed by EDXC on February 19 failed to influence the stock price. In the report EDXC revealed that they finished the period ending December 31 with:

  • ZERO cash
  • $165 thousand total current assets
  • $1.6 million total current liabilities
  • ZERO revenues
  • $64 thousand net ordinary loss

As a whole the company has managed to reach an accumulated deficit of $6.9 million while the negative working capital is sitting at $1.4 million. Another curious fact is that for the three months covered by the report EDXC has incurred $2139 in General and Administrative expenses for meals and entertainment. At the same time they paid only $440 for research and development.

Yesterday the company announced the public launch of its Cloud based Asset Inventory Tracking and Management System that should take place at the Cannabis Cup from April 16th to 20th so they might at least start generating some sort of revenues soon. Still the news proved to be enough to lure investors back.

EDXC jumped up by more than 21% and closed the day at $0.277. During the session 5.9 million shares changed hands which is nearly 6 times higher than the previous one. It remains to be seen if the momentum will be strong enough to enable EDXC to challenge its 52-week high of $0.29 posted a little more than a month ago.

ERBBchart2.pngEven if you believe that the company is finally moving in the right direction jumping in without doing your own due diligence is never a good idea. Be sure to take into account all the various risks around the stock and adjust your position accordingly in order to avoid unnecessary losses.

Another stock involved in the marijuana business that surged during yesterday's trading was Tranzbyte Corp. (OTCMKTS:ERBB). The company has mostly maintained its general upwards trend and after adding another 27% found itself at $0.05. Yesterday Terra Tech Corp. (OTCMKTS:TRTC) managed to recover after two sessions of corrections and closed 6% up at $1.22 per share.

Comments 1

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