I actually enjoy researching companies in the OTC markets. As they say on the internet boards, I am looking for a runner. But first rule of the game on the OTC is don't be too attached to your money. Nano's and Micro's fail at an alarming rate, and the OTC markets are not the place to invest your life's savings.
So I have two retirement accounts. The larger one is socked away in bonds, real estate, mutual funds and generally safe investments. The second account is a small Roth IRA in which I speculate in horrifically sketchy ventures. I like to call the second account, "The McKenzie Roth Research Portfolio." While I am a cautious adult in my traditional IRA, I am a crazy hippy from Oregon in my little Roth IRA.
Here's an example of a speculative venture I have money in now: New Colombia Resources, Inc. (OTC:NEWC). This stock is an exploratory, risky venture into the world of coal mines, cannabis and Colombia. This stock appeals to me for a number of reasons. The current share structure includes outstanding shares of about 600 million (a high estimate). At it's current price of $.01 per share the company has an estimated market cap of under $6 million. The company has not generated significant revenues in recent years, but there's a lot of promise here.
Colombia has the perfect climate for growing weed and the crop can year round outdoors. No lights and no electricity are necessary. Colombia's pot growers can produce the finest quality of cannabis at the lowest potential cost of production. The company has partnered with local farmers, who produce strains native to Colombia. Those strains are then processed into medical products that are sold in pharmacies throughout Colombia.
(I am also somewhat altruistic about Colombia. The country signed a peace pledge at the beginning of 2017, thereby potentially ending a 50-year civil war. As peace comes to the nation of Colombia, may there also be prosperity.)
In a recent press release, the company announced that it is the first cannabis company in Colombia to pay the country's 16% pot tax. The press release also stated that the company is seeking a license to cultivating cannabis in 2018. This link will take you to a copy of that article on the OTC Markets website:
The company is focused on bringing cannabis products into the US market, starting with a muscle ache ointment that it believes can be exported into all 50 US states. It has partnered with Colombian native Edgar Renteria, a former American Baseball World Series MVP, in marketing the product. A recent advertisement for the product appeared in the publication, USA Today. For more information here's a link to company website:
In addition to cannabis, the company has hundreds of millions of dollars in coal reserves. When the coal industry crashed around 2013, NEWC all but closed down. The cannabis portion of the company came into being while mining was in the off season. It has produced medical products from cannabis since 2014. However, after the recent resurgence of spot prices for coal, the company has launched an aggressive re-entry into the mining business. They are forming partnerships for coal and cannabis, partners that should help the company to earn badly needed revenues.
The share structure of this company has been diluted by toxic debt. The full extent of that has not yet been reported, and investors anxiously await company filings on this and other corporate matters. The company's CEO has promised that a 10K filing is forthcoming, but that promise has been made several times, and the 10K remains absent at this writing. Many people will tell you that a stock's price per share tells you all you need to know about a stock. The penny shares here are due to risk, uncertainty and a lack filings with Securities and Exchange Commission.
Honestly, I have researched a lot of really crappy marijuana stocks over the past 18 months. This stock holds its own in the marijuana universe. If there is gravy here it is in the coal. I know of no other publicly traded cannabis company that has as much promise as NEWC, owing mostly to the company's re-start in the coal industry.
I have a long position in NEWC but I do not plan to buy or sell shares in the company during the next 72 hours (But I did buy a few more shares earlier this morning). The information in this article is true and correct to the best of my ability. I was not compensated by NEWC in exchange for writing this article. Please carefully research a company before investing funds.
Mike "Crazy Hippy" McKenzie
April 20, 2017
Disclosure: I am/we are long NEWC.