MCIG Stock Painted Red. Let’s Bring Out That VitaCig Spin-Off Already!

Mcig 2.0 and VitaCig

Oh that MCIG! They can put on quite a show and draw a crowd.

Securing brand ambassadors like rapper Rick Ross, entertainer and “Jackass” founder, Bam Margera, and Jonathan Cheban of “Keeping Up With The Kardashians” has brought a lot of awareness to their up and coming brand.

Rising in popularity, we not only see the mCig, but also a smoke and nicotine-free product with nothing but water and vitamins: VitaCig.

They even have plans to enter the new alcohol vaporization market with LiqCig, which will be 100% owned by mCig, Inc.  Put into the absolute simplest of terms, there’s a lot you can like about owning MCIG stock long term.

But I sure do NOT like the recent downturn of the stock price…..

MCIG Stock Double Bottom August 27th 2014

Patterns count, whether you love or hate all the technical analysis mumbo jumbo, and this recent pattern is disconcerting.

MCIG stock has wavered in the mid 40 cents range for many months, and ascended as high as 53 cents during that same time.

A technical analyst would probably draw attention to the double bottom formation, but here’s the problem with viewing that signal as a golden opportunity to buy…..

MCIG just recently fell apart to the mid 30‘s, and the support level at 40 cents that previously held strong like an ancient Spartan warrior defending his homeland, collapsed like a tower of cards.

So is this just temporary frustration being expressed by current MCIG investors?  Or is this a good time to buy on the cheap side?

I think a lot of current MCIG stock enthusiasts have been holding and awaiting news that the company is going to move forward with the VitaCig spin-off, which will provide a 1:1 VitaCig stock dividend to MCIG owners.

This process continues to be delayed and holders seem to be growing tired.

The volume being traded has been strikingly low.  All it takes is for a small group of investors to say “I’ve had it!  I’m sick of waiting for this VitaCig spin-off and I’m dumping this!” to bring about such a rapid decline in the share price with these terrible volume numbers.

Considering its low revenue numbers and the sheer amount of e-cig competition emerging, a negative reaction is understandable.  MCIG was previously trading at a valuation well over $100 million.

MCIG is diversified, able to appeal to the younger generations, and seems intent on gobbling up market share through very flashy exposure.  But the valuation may be getting ahead of itself.  There’s a lot of revenue to be gained before I can feel completely at ease with a triple digit million valuation.

That’s why it’s so hard to determine if this 30 cent dance is a hiccup from impatience and low volume, or if it’s a necessary correction for a valuation that crept up way too high in MCIG’s infancy.

Disclaimer:  I am currently long MCIG.  And NO, I have not sold following the breakdown of the 40 cent levels, but I am accepting extra risk as a long-term holder.

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FITX stock dripping through the grates of CEO Bill Chaaban’s grill?

Selling FITX Stock

Prepare for a discussion regarding a company and stock where emotions seem to always run wild……….

I know some die-hard FITX stock holders would rather spit in my face than read anything discussed in a negative light about Cen Biotech (FITX) or it’s CEO, Bill Chaaban.  Note that I’m not trying to ruin your “hur-rah!”  I’m just sorting through the developments and detailing what stands out and concerns me most.

I also have bad news for the FITX contenders.  This isn’t a bash fest I’m about to unleash.  At least, that’s not my intention.

One commonly voiced concern is that entrepreneurs should be rewarded for success and hard work, and while it’s not entirely fair to say “Bill Chaaban has accomplished nothing yet,” the long road toward FITX developing into a sustainable, productive business has only begun.

And Bill has been gradually unloading his FITX shares for a while now.

You can accept a popular rebuttal to this – that it’s smart for a CEO or any director to take some profits as the stock price rises, if for no other reason than to start gaining back some of his personal initial investment.  Or also to liquidate some of the rewards for working hard and running the company.

So why exactly do many current FITX stock investors and also critics continue to voice their concern about Bill Chaaban selling his shares?  Mainly because he specifically stated in the earlier stages of this year that he would not be selling.

Also, there’s some frustration that Cen Biotech still has not received the MMPR license from Health Canada and cannot begin medical marijuana production in Lakeshore, Ontario.  Receiving the license has taken considerably longer than Bill and many investors anticipated.

But let’s go back to the insider selling topic.  One of FITX’s most outspoken critics, Matt Finston, recently published a listing on iHub, detailing the dates in which Bill sold his shares.  Pardon the far-from-perfect formatting, it still should be rather easy to interpret:

FITX shares sold by BillMatt further reports that the total proceeds are $3,636,238 and a total number of 47,360,399 shares have been sold at an average price of $0.0768.

Here’s my latest concern and thought about these FITX stock dumps by the CEO.  The current “high” valuation of the company is often critiqued, and I agree that the hype factor surrounding FITX is primarily responsible for this.

Maybe Bill strongly agrees with this as well.  He’s been disposing since February 2014 from 0.0972, and now we see the latest series of selling in the 5 cent range.  Bill has cooked up a lot of enthusiasm for long term investors over the past several months, but now his own holdings appear to be slowly dripping away.

I won’t draw out a long series of possible explanations for this, as those lists could run on forever if you have a powerful enough imagination.  I just leave you with one gnawing question that I’ve been pondering for a while now:

If Bill Chaaban doesn’t prefer keeping FITX at these share prices, WHY should we?

Disclaimer:  I have no positions in FITX stock, and quite frankly, would never even think about shorting it.  Be very careful no matter what position you are inclined to take here.

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MDIN, BTCC, and ANAS stock a scam or just an unexplicit relationship?

Pump money anas

I remember when ANAS stock (Alternaturals Inc) made a yahoo news appearance about what is supposed to be its flagship product, 5 Hour High, which was later announced to be produced in the near future by Kush Creams.  It seemed to have a small following for a while, and then the interest seemed to gradually wear away, bringing the stock price with it.

An individual that is holding ANAS emailed me a very interesting set of findings when looking into the internet presence of Alternaturals, along with 2 other companies:  Northstar Global Business Services, Inc. (OTC: MDIN) and Bitcoin Collect, Inc. (OTC: BTCC).  I suppose it’s worth mentioning that BTCC recently changed its name from Solpower Corp and was trading under the ticker SOCR.

I’ve been given permission by the author to post the report on 420 Stock Talk, so here it is.  If you are currently invested in or thinking of soon investing in MDIN, BTCC, or ANAS stock, you will definitely want to read on and grasp a better understanding of how all these stocks are intertwined.

—–  —–  —–  —–  —–  —–  —–  —–  —–

Some may still remember ANAS, the stock that skyrocketed from 0.0030 to almost a penny in a single day after a yahoo PR announcement and some help from the Wolf of Weed Street.  What you may not know is that other investors have raised concerns about similarities between ANAS and Northstar Global Business Services, Inc (MDIN) on boards such as iHub.  Speculations seem to range from a mere noticeable and potentially coincidental resemblance between the two companies, all the way to concern that someone – perhaps Raymond Barton – is running a more sophisticated series of pump and dump scams.

From observing both ANAS and MDIN investors’ online discussion and reading the reports and PR releases (available on OTC markets), it was clear to me that they did indeed have very similar products, and stories about investors patiently waiting for “big news” that was expected to rocket the stock price.  They are also both undoubtedly tied to Raymond Barton, although the extent of his current involvement is largely unknown with ANAS:

Emmanuel Gyamfi mentions Ray Barton

You can read about Raymond Barton’s involvement on pages 8-9 of MDIN’s report here, in which he was appointed CEO, but later resigned after the money ran dry:

https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=116325

After repeatedly reading that “ANAS and MDIN had NO connection to one another” (aside from an ambiguous Ray Barton tie) on several boards by various investors and participants, I still thought the similarities were far too suspicious.  I decided to take a closer look.

First of all, I did a WHOIS search on alternaturals.com (ANAS).  The registration information is completely hidden, protected by a private registration service (Domains By Proxy, LLC).  The domain registrar is GoDaddy.

Next a WHOIS search for northstargbs.com, Med Gen Inc (MDIN) and North Star’s main site.  The registrant is Raymond Barton, from Melville, New York.   The domain registrar is also GoDaddy.  Okay, so we’ve confirmed that both companies utilize GoDaddy for domain registration and Raymond initiated the purchase for North Star / Med Gen Inc (MDIN).  Overall, not too much there yet, right?

Next, I performed an “nslookup” on alternaturals.com.  This showed that the ANAS site’s domain name was pointing at IP: 184.168.76.205.

Now for the real eye-opener.  I’ve just run a reverse IP domain check from “you get signal” on the IP 184.168.76.205.  For those unfamiliar with this research tool, “you get signal” has a great description on their site — “A reverse IP domain check takes a domain name or IP address pointing to a web server and searches for other sites known to be hosted on that same web server.

Here were the results of the check for IP 184.168.76.205:

YouGetSignal Report of IPYou’ll immediately notice that Alternaturals (ANAS) and North Star (MDIN) are listed, but also take note of another (OTC) penny stock by the name of SolPower (SOCR), which is now trading as Bitcoin Collect (BTCC) .

What does this mean?  All these sites are hosted on the exact same server at GoDaddy.com!  Just to be “extra sure,” I ran nslookup on “northstargbs.com” as well, and sure enough – it’s using the same IP:  184.168.76.205.

Let me carefully expand upon all this, because someone entirely unfamiliar with web hosting services may not understand any significance in this discovery. First of all, the fact that those 3 sites use domains by a registrar as large as GoDaddy (or even the same identity/registration protection service) doesn’t really demonstrate much by itself. All that did was perk my curiosity and led me to the nslookup, which led to far more eyebrow raising discoveries.

The fact that they all share the same IP address shows the relationship worthy of consideration. Shared hosting products tend to have 100’s (if not 1000’s) of domains/sites on a single server. Site owners purchase relatively cheap hosting (usually $5-10/mo), and in return, the hosting company places several clients on the same bulky server. So, in this regard, no single client on the server has full control of its resources (CPU, RAM, storage, etc), and a single IP’s use is split (or “shared”) among several clients.  If the 3 sites I mentioned above were listed with 100’s or 1000’s of other sites, I might not be as concerned.

However, this nslookup shows only a small handful of sites on the same IP, which indicates that the server is almost indefinitely a GoDaddy VPS or fully dedicated server. In either case, the product is owned by a single person or entity, which essentially has exclusive control over that single IP. Put simply, whoever owns that GoDaddy product is administrating *all* the sites on that IP.

Upon doing a little more digging, I found some other similarities among these sites.  One of the most notable is the site design and implementation itself.  All sites use the WordPress content management system, and have pages with similar design (i.e. the “Investor Relations” page on all sites has the same layout).

If you study the PPS history of MDIN and SOCR/BTCC, you’ll notice they show similar patterns as well.  These are stocks that have apparently spiked high on news, and then slowly crawled back to record lows.  ANAS hasn’t been around quite as long, but you’ll see it now mimics the journey on the same downward road.

I don’t know if there’s a single “man behind the curtain” here, pulling all the strings, and trying to hide a massive secret (such as a major pump and dump engine), OR if it’s something much less sinister.  However, the rabbit hole is starting to go deeper and these findings are a tad daunting.

Plenty of questions remain unanswered about Ray Barton.  It’s further intriguing that shortly after ANAS announced that Kush Creams would be manufacturing their long awaited 5 Hour High product, news of a licensing agreement between MDIN and Kush Creams also surfaced.  Though, after everything I’ve laid out above, this shouldn’t seem too jaw dropping.

My last words are simple, sweet, and paramount to protecting yourself:  Be careful and do your due diligence before investing in anything!

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Squinting eyes at HEMP stock reports and the curious revenue treatments

Washington hemp stock

Late the other day, I was asked what thoughts I had about HEMP stock and CEO Bruce Perlowin after the Q2 2014 report came out.  I don’t really follow Hemp Inc, so I had no immediate thoughts.  I opened up the quarterly report, squinted my eyes quite a few times, and then checked the popular stock boards and marijuana stock news blogosphere to see what regular followers were feeling.

There’s some happy HEMP investors and pushers talking up the stock, but there’s a lot of questionable and concerning aspects to that report.  Let me say it outright.  The numbers are kind of scary and confusing and I’m glad that I am not holding HEMP right now.   That can change, but we are where we are right now.

http://www.otcmarkets.com/financialReportViewer?symbol=HEMP&id=125396

First of all, we see some dilution.  Outstanding shares (O/S) were about 2.1 billion, and they’re now sitting over 2.5 billion.  What’s concerning here is that we really don’t have any way of identifying whether the dilution has a positive side to it.  If you have to dilute the stock to bring in new management, secure more investments, entertain an acquisition (and so on), then I could simply nod my head and say, “Okay, let’s see how the strategy here plays out.”

But we have no idea, and we’re left with only lines and scribbles to speculate on.  A little shy of 400 common shares were added to the total O/S, much of which apparently comes from the conversion of Preferred K shares, which was supposed to be used to clean some debt off the balance sheet.  The problem?  It’s unclear who was supposed to receive these preferred shares in the first place.  Is it Bruce Perlowin or another insider?  Is it an unnamed special interest, perhaps a private equity firm?

Then there’s the issue of the reported revenue.  Slightly over $2.36 million in revenue was reported for the period.  The problem?  It seems the vast majority of this revenue is from other OTC stock received from “six corporate customers,” and this is accompanied with an ugly $3.3 million reported loss from what is vaguely referred to as “other comprehensive losses.”

Where does this come from?  Previous shares were received and recorded for a couple quarters now, and it seems this 3 million pinch comes from those securities declining in value.  So now it would appear that reported “revenue” can face some pretty rocky waters and potentially find large portions of itself lost to sea.  If these are all OTC stocks, you can expect that crazy volatility to continue.

What a mess, I say.  I’ll leave you with an interesting post on Yahoo from a guy that goes by “andrewcapt.”  Yahoo boards don’t always bring about the most reliable or fruitful discussions, but some of the more detailed postings do make you think:

HEMP yahoo andrewcapt comment

I don’t like to see games being played with “revenue.”  That’s my final thought.  If you have similar or very different thoughts, sure, let’s here them.

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Buying ATTBF stock (Abattis Bioceuticals) before the reversal? The charts are speaking.

Technical analysis is one of those touchy subjects that can get you in trouble if you don’t plan your buying or trading carefully.  That’s especially true when dealing with marijuana penny stocks.

But every candlestick tells a story, even with highly volatile stocks.  Let us not forget that.  And there may be a couple good omens for current ATTBF stock holders and for investors sitting on the sidelines wondering when they should take a long position in Abattis Bioceuticals.

Let’s go to the charts for some insight, shall we?

Abattis stock chart, August 15

What are the charts saying?

First of all, we see a very important bullish candlestick on 8/13/14 – the Hammer.  For those unfamiliar, this signals that the strength of the bulls are gaining, and often (though certainly not always) precedes a reversal of the trend.

This isn’t the “perfect” Hammer, in which ideally the top shadow wouldn’t have existed, but it’s a Hammer followed up a slight movement upward in any case.

Secondly, we have the clear-as-day (in this case) Double Bottom.  The stock dropped to a strong support level around 0.38-0.40, ascended to the mid 0.70’s, and then re-tested the same 40 cents support all over again.

Where do we go from here?

On this chart, we can only see a couple days of positive follow up.  What would be excellent to see, if you’re currently long ATTBF or planing on buying in soon, is a return to 50 cents in the near future.  That would give credence to some of these nudges suggesting that a “reversal is on the way.”

In the long term, we need to see a breakthrough past the 70 cents levels.  Excitement got the best of some buyers at the height of the last run-up, in which ATTBF fell pretty sharply by over 20% in just a few days.  This time around, if we see a continued drive to the $1.00 mark, it would speak volumes for long term investors sentiment and interest.

And if you’re looking to invest in the marijuana stocks which have the highest likelihood of sticking out the evolution of the sector, long term is what it’s all about.

Disclaimer:  ATTBF stock is by far my largest position in my marijuana / penny portfolio.  I love the management team, I love the diversification strategies, and (going off a popular Mark Twain quote), I like that Abattis is looking to sell picks and shovels right as a new gold rush is emerging.

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Jason Barkeloo selling off Tauriga Sciences (TAUG) stake?

Selling FITX Stock

Some TAUG (Tauriga Sciences, Inc) investors aren’t particularly pleased with what appears to be some impatience on Jason Barkeloo and Bacterial Robots’ part.  Per the Form 4 filed on 8/12/14, Mr. Barkeloo disposed of TAUG securities in the following amounts:

8/8/14 — 1781000

8/11/14 — 1719000

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10147105

The frustration is understandable in context.  TAUG flew ahead from 0.02 to almost 0.06 a share from late June to mid July.  This was followed by a test of endurance from loyal holders, as TAUG stock has gradually declined back below 0.03.  You can’t blame Barkeloo for wiping out the entire 3 week 200% gain, but at the same time, it certainly doesn’t help steer the price in the other direction.

No point in dragging out too much speculation at this point.  The good news is that TAUG CEO Stella Sung is often praised for her transparency and willingness to communicate directly with shareholders.  If you’re a concerned shareholder, it sounds like she’ll be happy to answer your questions.  Don’t be afraid to give them a call.

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mCig (MCIG) drives another endorsement, claims 10-K will show 1,100% increase in revenue

Mcig 2.0 and VitaCig

10-k will be released on Friday. The Company expects to report approximately $543,000 in company-wide pro-forma* revenue. This figure includes pro-forma revenue for mCig, Inc., VitaCig, Inc., and Vapolution, Inc. for the year ended April 30, 2014**. This compares with approximately $50,000 in the prior-year ended April 30, 2013 and represents an approximate 1,100% increase. The Company expects to report profitable Adjusted Earnings* for the year ended April 30, 2014. The Company expects to report approximately $353,000 in company-wide pro-forma* gross profit for the year ended April 30, 2014.

This reflects a gross profit margin of approximately 65%. These financial results reflect only 15 days of sales for VitaCig (launched on April 15, 2014) and only 103 days for mCig inclusive of days where the company ran out of inventory.

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