Dragni Dragnev

Cannagrow Hldgs (OTCMKTS:CGRW) Gets Hit Hard

by Dragni Dragnev April 5, 2016

Cannagrow Hldgs (OTCMKTS:CGRW, CGRW message board) lost 29.07% of its market value yesterday in a wave of frenzied selling – but why?

The argument that the company’s elevated chart position was not a realistic representation springs to mind. CGRW hardly seems to have done enough to have earned the $62 million market cap it has now, let alone the $100 million market value that it had on Friday.

Truth be told, that is the kind of market value you’d expect from a functioning entity that is making millions of dollars in profits per quarter instead of a suspicious OTC markets underachiever that is just relying on hype to keep itself afloat.

Investors are advised to look at the following financials that the company gave for the last reported quarter, and decide for themselves which category CGRW fits in:

  • Cash - $14 thousand
  • current assets - $35 thousand
  • current liabilities - $3 million
  • quarterly revenues - $10 thousand
  • quarterly net loss - $87 thousand

True enough, those numbers are outdated by now. However, CGRW does not seem to be in a big hurry to remedy that situation. Still, what’s even worse is the fact that CGRW’s shortcomings don’t end with its idle-looking financials.

Even if investors completely disregard the shady past of its CEO Mr. Delmar Janovec, which they shouldn’t, but that’s another matter we have already discussed, there are still enough red flags sticking out of this company’s reports like sore thumbs to give anyone pause.

For instance, the fact that nearly $2 million worth of CGRW’s debts are in the form of short-term notes payable. Add that to the fact that in Q1 and Q2 of 2014 CGRW issued more than 20 million shares at prices of nearly one penny per share, and one of the possible causes becomes quite obvious indeed.

Long story short – CGRW talks big, but its words are mostly hot air – which lacks retention power. Investors would do well to be on the lookout for its upcoming financial report, that should hit the web up to ten days from now.

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