Anastas Gegov

Minerco Resources Inc (OTCMKTS:MINE)'s Slide Comes To An End

by Anastas Gegov March 27, 2015

This week didn't start well for the stock of Minerco Resources Inc (OTCMKTS:MINE, MINE message board)'s stock, despite the shareholder update that was released on Monday and the ticker recorded some serious losses. The slide, however, seems to have come to an end for now.

 

The Monday press release was meant to hype up investor confidence, but instead did the opposite. MINE didn't only announce the progress that they have made recently and also filed a financial report for the quarter ended January 31 which appears was not to the liking of shareholders. Here is what the balance sheet contained.

 

  • cash: $137 thousand
  • current assets: $1.5 million
  • total assets: $2.72 million
  • current liabilities: $3.39 million
  • total liabilities: $4.94 million
  • sales: $740 thousand
  • net loss: $2.11 million

 

On the good side of things, we see that the company is generating revenues. However, we see that the gross profit is even lower than that of the same period last year, while the revenues themselves have almost doubled. This was surely not to the liking of investors. When you add that the net loss has has grown by a staggering 1571% things begin to look even worse.

 

The numbers from the financial report might very well be the reason for MINE's performance throughout the first half of the week, but lately it seems that things have took a turn for the better. Yesterday the company announced that its daughter company, Level 5 Beverage Company, Inc. has exercised its option to purchase an additional 21% of Avanzar Sales, increasing its total holdings from 30% to 51%.

 

This was enough to provide for a 7.27% gain during the session and the ticker closed at a price of $0.0059. We saw a total of 35.1 million shares change their owners during the six and a half hours of trading, which at that price generated $193 thousand in daily dollar volume.

 

It seems that things won't stay like this for long as we see MINE gapped down today and opened at $0.0055, or 6.78% lower from yesterday. It has stayed at this price after briefly dropping to $0.0054. In any case, be sure to do your due diligence and weigh out the risks before making any investment decisions.

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