Borislav Tonev

Medical Cannabis Payment Solutions (OTCMKTS:REFG) Hesitant Under the Promotional Pressure

by Borislav Tonev January 28, 2015

Medical Cannabis Payment Solutions (OTCMKTS:REFG, REFG message board) issued its latest press release on September 23. That's more than four months without a single announcement.

In Pennyland, this is an awful lot of time and it can be enough to beat a stock to the ground. But is the silence such a bad thing in REFG's case?

Well, the PR from September 23 was actually a letter to the shareholders. In it, Jeremy Roberts, the company CEO, said how happy he is with the progress REFG has made and announced that the achievements reached during the first nine months of 2014 have put the company “in the top tier of our industry”.

A month and a half later, the financial report for the first nine months of 2014 popped up and it showed that if REFG is indeed in the “top tier” of the marijuana industry, then the sector is in trouble. Here's a summary of the figures:

  • current assets: $437 thousand in cash
  • current liabilities: $146 thousand
  • revenue for the first nine months of 2014: $5,000 (you read that right – five thousand dollars)
  • net loss for the same period: $116 thousand

Before panic sets in, we should make it clear that there is no problem with the marijuana industry. It's Jeremy Roberts who was a bit too excited about his company.

The chart at the beginning of the article shows pretty clearly that investors are aware of this fact. When Mr. Robinson was talking about being in the “top tier” of the pot business, REFG was hovering around $0.15 per share. Right now, it's barely hanging on to the $0.06 mark. It is moving, though. Why?

Because it's being pumped... again. The latest batch of emails costs a whopping $65 thousand and, as is often the case, it was paid for by a third party. The alerts started flooding investors' inboxes before Monday's opening bell and were sent by a few relatively prominent outfits like Damn Good Penny Picks and Best Damn Penny Stocks.

The hype did push REFG in the right direction initially, but yesterday, the ticker lost a hefty 14% and closed the session at just over $0.06. The pumpers sent a few more emails after the closing bell, saying that “this bottom bouncer could take off”, but if early trading today is anything to go by, this will not happen. Thirty minutes into the session, REFG is sitting at $0.058 – another 6% in the red.

So, despite the pumpers' best efforts, the stock performance is pretty appalling. But is this a surprise?

If you've been around the stock for long enough, you know that it simply refuses to remain steady under the promotional pressure. There should be a very good reason for this.

While we can't be certain what it is, we do know that back in the third quarter of 2014, REFG raised $500 thousand by selling 20 million shares at $0.025 a piece.

Even at the current price (which is precariously close to the 52-week low), the investors who took part in the financing can unleash their discounted shares on the open market (pushing REFG's price down along the way) and log more than 100% in profits. That's not a bad deal, you have to agree.

Comments 2

1. Guest
February 24, 2015, 08:40AM

Quotes TRTC Derek CEO setup a MJ Enterprise
by Trojan- Horse Business Strategy !

See Here :

2. Guest
January 29, 2015, 09:58AM

Quotes For the merchants who are serious about their longevity in the business, and aren`t averse to take time to set things right, we have an alternative offshore solution. 100% legal and legitimate. We are partners with a company who has developed a program for merchants to be able to accept most major credit cards (no pin) MasterCard, Visa etc. Creating an account is easy, we will personally handle all of your paperwork to get it started. Unlike the traditional “merchant account” this program uses a voucher system.
For more info please refer to our Web Site. Our live chat support will be glad to answer any of your questions.

Type the characters that you see in the box (5 characters).