Hristina Beeva

USA Real Estate Holding, Co. (OTCMKTS:USTC) Crashes by a Quarter on Profit-taking

by Hristina Beeva May 12, 2014
USA Real Estate Holding, Co. (OTCMKTS:USTC) is getting comfortable in its double-zero range. So comfortable in fact that it will hardly manage to dig itself out. On Friday, the rising trend broke and USTC slid down by mode than 24% to $0.0025, as selling expanded above $560,000. The end of the trading week was an unusually slow day for the MMJ sector, as even the most active OTC companies did not manage volumes above $3.39 million. USTC0512.png

Now, USTC is in the balance, with several oddly optimistic investors' opinions on the Investors' Hub message board. Others believe the company holds too many red flags and will continue to inflict pain with price fluctuations. The company itself has not relied on fresh PR, and at this price point, the promoters already left. The latest promotion for USTC was on May 8th, from Stock Aviator, but it may only have served to make things worse.USTC0512.png

At this price range, swings up or down are significant. Also, USTC already crashed on mass selling, abandoning a reasonable $0.05 price right at the beginning of the promotion. This makes us think that the emails served to create interest so that other investors could sell off their holdings, thus permanently depressing the ticker price.

USTC would have been a hit a few months ago, with its low price. But right now, dubious marijuana stocks are not so much in demand. Also, USTC is not exactly a cannabis business, but a former real estate company that claims it could cater to the demands of dispensaries and other outright sellers of legalized marijuana.

The Marijuana index would not even reflect the movements of a whole range of tickers, due to the recent inclusion criterion of having a price above one penny. So the range below one penny is now an undiscovered land, with its own arbitrary movements.

Until recently, investors could find a viable and relatively stable sub-penny selection in the face of Latteno Food, Corp. (OTCMKTS:LATF), which traded on decent volumes. Unfortunately, profit-takers brought LATF down every time it crossed the one-cent price barrier, so in the end it was expelled from the index, with an immediate drop in volumes. LATF is now weighed down even further, at $0.0035, as selling outstrips buying. While LATF can stage a wild intra-day run, the best days of double-zero marijuana stocks are in the past.

But not even a high price would save an MMJ stock from a catastrophe. In the case of Advanced Cannabis Solutions, Inc. (OTCMKTS:CANN) the real estate business model failed to attract enough respect. CANN slid down from its higher range, suddenly down at $16 after the SEC suspended its trading for a few days.

If you are looking to catch the date when the pot stock boom gets back on track, be aware that the bad mood may drag for a while, and even stretch into the summer months where trading is slower. Still, MMJ tickers are still ruling the OTC market activity and may offer some short-term pleasure, but make sure you can also afford the days of painful cuts to price levels.

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