I am going to a running tabs on MJ stocks. I will be using the following criteria:
1) Does not engage in any business activity
2) releases vague PR (for example :" interest in going into the marijuana industry")
3) Does not file with a recognized regulatory agency (pinks and below$
4) Significant Shareholder dilution 100% or more
5) Excessive Insider selling (over 25% of holdings is suspicious. note we like insider buying!)
6) No clear management team (Company should have a CEO, CFO, Board of Directors, etc).
7) recent dramatic rise in price 1,000% or more.
8) Large Float (issuer has issued all or most authorized shares. Aka 100m a/s and 95m o/s
9) sudden change to the marijuana industry after years of running unprofitable businesses (all the junior mining companies fall here)
10) little to no revenues (less than $10,000)
11) no assets (less than $100,000)
12) management has criminal background
13) inconsistent business model (changes week to week, press lease to press lease)
14) recently halted/suspended
15) being pumped by anonymous investment group (on Facebook, ihub, twitter, seekingalpha)
16) No Investor Relations
0-3: possibly safe but more due diligence would be helpful 4-7: caution but possible high risk/high reward 8-11: suspicious, not worth the risk, 12-15: fake only value is the pump
Feel free to use the criteria and leave your views in the comment section. Do not supply a rating without using the criteria. Do not just write ATTBF 1/15 without supporting it. For instance I would argue that
ATTBF 4/16: #4 dilutions #10 no revenues 7#price #15 Pump
LATF 5/16: #3 regulatory, #dilution #6 management team, #8 Float, #16 poor communication
*17 something smells fishy
MCIG 3/15: #7price #15 Pump #8 Float
MDCN: 2/16 #No revenues #7 Rise in price
MDRM 11/16: #1 no business #2 vague #3 filing #4 dilutions #6 management team (recent change in CEO) #7price #8 large float #10 no revenues #11 no assets #13 inconsistent #15 Pump
SPRWF 6/16 #1 business #2 vague #7 float #8 cheap warrants being exercised at 5 cents add to OS #9 good and bad track record of CEO, radio station is positive, #10 start up but purchase offer for existing MMAP producers
Disclosure: I am long ATTBF, MDCN.
Additional disclosure: I used to be long on MDRM. I am no longer long until the company fully discloses financials. I apologize for any confusion.