MOLORI ENERGY INC (OTCMKTS:MOLOF) in Good Company

MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF)

One of the world’s greatest sayings is “follow the money”. This is particularly true of businesses as their vision of the future dictates how and when they allocate their resources. Businesses like the highest reward for the lowest risk so it is logical that they spend where they can get the best returns. In today’s oil market, the topic that continues to dominate is the new technology available to North America drillers and friendlier industry regulations – both of which are highly prized assets by the oil and gas sector. This combination is producing an environment where profits are now being generated from assets that were once believed to be depleted or too costly to operate. Mothballed, or previously operationally expensive, assets are now being brought back to life. Oilfields that were once considered too costly, or too difficult, to extract are now getting a second look. A great example of this is the Red Cave formation in the Texas panhandle. Not only are established players returning, but at least one firm we have highlighted in these pages before has an interesting play currently in process.

Red Cave History

The Red Cave formation has an interesting history. Most drillers believe that “Red Beds” do not produce both oil and gas, however Red Cave does. The formation has produced over 70 billion cubic feet of natural gas since drilling there began back in 1919. In 1960, the Red Cave formation received a separate field designation from the Texas Railroad Commission. Drillers have been active here ever since and are to this day, as you can see in the satellite image from Google.

MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF).
Red Cave Wells

Drillers Returning

For a while many believed that the Red Cave formation was either depleted or too costly to drill at a profit. That now appears to be “old thinking”. Reports show that money is returning to the Red Cave formation. Long time player Masterson West LLC, through their affiliate Adams Affiliates Inc., has 8,000 net acres. Masterson is now joining forces with Tulsa, OK-based Empire Petroleum Corp. to attack the sands play. The newly formed entity is named Masterson West II and it will be well capitalized. Empire will be contributing 40 million of its common shares and $9-$18 million for a stake that could range from 25-50%. Masterson West LLC will be contributing the leaseholds. Masterson West believes they have identified 380 locations to develop on wells spaced five to ten acres apart, with 200 proved undeveloped drilling locations. They estimate each well will cost them $250,000 and they are planning on drilling forty wells for the next few years.

Molori Energy Inc (OTCMKTS:MOLOF) Offers Pure Play

So we know that serious money is coming back to the Red Cave formation. How to take advantage? MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF) owns outright, or has optioned, over 4,000 acres with exposure to the Red Cave formation. Their largest lease is named “Mother Goose” while another lease is named “Thompson”. Joel Dumaresq, Molori’s CEO, is expecting two wells to be completed on the Mother Goose and Thompson leases by the end of this month. Molori’s bankers, Casimir Capital, have sourced over $100 million in investments for oil and gas producers with an asset profile similar to Molori Energy. At the last shareholder conference call, Casimir claimed that most of the wells drilled in this area produce around 50 barrels per day with a payback period of six months to a year. A review of the Texas Railroad Commission records seems to indicate that its likely Casimir could be referencing the Red Cave wells owned by Adams Affiliates, Inc. This could explain the massive investment that Empire Petroleum is willing to make.

If technology and a new regulatory environment will return the Red Cave formation to its old glory days, then it could be wise to forgo investment in some of the larger players and instead consider the Red Cave pure play that is offered by MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MOLOF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

UPDATE! US Stem Cell Inc (OTCMKTS:USRM) Plunges on Open

US Stem Cell Inc (OTCMKTS:USRM)

US Stem Cell UPDATE!

Shares plunged on the open by around 35% after news was released by the company that it would not pursue a Regenerative Medicine Advanced Therapy FDA designation at this time. Instead, US Stem Cell will allocate resources towards expanding their existing 12 stem cell clinics and treatment centers. Volumes are heavy!

US Stem Cell Inc (OTCMKTS:USRM) released positive quarterly earnings in early May and has now announced more positive news in the form of global recognition for the efforts of its Chief Science Officer Kristin Comella.

US Stem cell, Inc. is a promising company in the stem cell industry. They focus on regenerative medicine and cellular therapy. US Stem Cell Inc (OTCMKTS:USRM) discovers, develops, and commercializes cell-based treatments that addresses disease by repairing and/or replacing damaged cell tissue, cells, and organs. US Stem Cell Inc (OTCMKTS:USRM) has three operating divisions – US Stem Cell Training, Vetbiologics, and the US Stem Cell Clinic. These divisions monetize their efforts by developing proprietary cell therapy products and training for healthcare professionals.

In 2016, the size of the global stem cell industry was estimated to be in excess of $68.7 billion. However, the market’s growth is being restricted by the high cost of treatment compounded by a lack of reimbursement policies by insurance carriers. Also contributing to growth impairment is burdensome government regulation in response to the unethical harvesting of stem cells.

US Stem Cell Inc (OTCMKTS:USRM) stock has suffered over the past few years. In 2014 USRM shares were briefly trading over $50 but today the shares can be had for under $0.10 – ten cents. Obviously there has been a lack of execution and ability to generate profits. However it appears what they do not lack is intellectual capacity. A scientific paper regarding intramyocardial implantation, co-authored by Kristin Comella, Chief Science Officer of US Stem Cell Inc (OTCMKTS:USRM), has been recognized as one of the most influential papers of 2016 according to Altmetric.com. This is not the first time that Kristin Comella has been recognized for her contributions to stem cell science. She was also named #24 on Terrapin’s list of top 50 Global Stem Cell Influencers. She was also listed at #1 on the Academy of Regenerative Practices list of Top Ten Stem Cell Innovators. Mr. Comella also led the team that achieved the first ever FDA approval for a clinical trial for a heart product that used a combination of cell and gene therapies.

Here is a link to the paper highlighted above – https://www.ncbi.nlm.nih.gov/pubmed/27255774

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $USRM and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc Anderson is a pseudonym. Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

The Big MO MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY) now has two claims to the nickname “The Big Mo”. Of course, their name lends itself to the moniker but lately the share price has also been rising at a strong rate without any accompanying news that could justify the price action from a valuation standpoint. Still, there can be little doubt that the stock is rising on the back of heavy buying. The question is – why? On the other hand, for momentum traders, who cares? Just ride it while it lasts!

Last Monday, June the 5th, MOSY shares began their upswing. Prior to that day, shares of MoSys Inc. (NASDAQ:MOSY) had not traded over 100,000 shares per day for weeks, and on some days daily share volume did not break 10,000 shares. But beginning on June 6th daily share volumes have been:

June 6 – 550,250

June 7 – 14,140,000

June 8 – 2,800,000

June 9 – 4,770,000

June 12 – 1,010,000

June 13 – 16,000,000 (a/o 1:30PM EST)

Less than a month ago, MoSys Inc. (NASDAQ:MOSY) hit its existing 52-week lows of $0.55. Today MOSY shares have traded over $2.50. MOSY shares have a long-term performance that is nothing to write home about – the shares have lost over 50% for the past year and are down over 30% YTD. However, the more recent share performance is remarkable. MOSY shares are up over 140% for the week and up over 95% for the month. That performance has attracted many momentum players who will ride the recent trend until they feel the ride is over. Importantly, the Relative Strength Index (RSI) for MOSY is 76.74. That figure does represent an overbought condition – but just barely. So there may be some more room left to the upside.

On the other hand, MoSys Inc. (NASDAQ:MOSY) released Q1 results in early May and the stock dropped on a reported net loss. Since that financial release, there has been no news that would justify the current upward swing.

Several things could be in play. One is a concerted effort to move the stock and force it onto the radar of momentum traders who will then make the move even more exaggerated. Or it could be an institutional player taking a major position. Also a possibility is the notion of insider trading on yet-to-be released material information. No doubt other possible reasons exist and, hopefully, they will become know. But one thing is certain, if this is a pure momentum play, the last one out of the pool loses.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

Don’t miss out! Stay informed on $MOSY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Industry Leaders and Investors Await Airborne Wireless Network (OTCMKTS:ABWN) Proof-of-Concept Results

Airborne Wireless Network (OTCMKTS:ABWN)

Airborne Wireless Network (OTCMKTS:ABWN) announced this past Friday that they have completed their proof-of-concept tests in Roswell, NM and will make the results known shortly. The results could, literally, change the direction of the global communications industry – and it is no stretch to believe that the entire communications world is waiting for the results with baited breath. Hundreds of billions of dollars in communication infrastructure spending, maintenance, and operations could vanish if Airborne Wireless Network (OTCMKTS:ABWN) is able to execute their vision. While that is a good thing in terms of cost savings for companies that want to expand their coverage and lower their expenses, it is likely bad news for the vendors that supply the labor and materials to those same communications companies.

Airborne Wireless Network (OTCMKTS:ABWN) has a unique vision – to bring communications to the entire world through a network of airplanes that already exist in the world’s air routes. Think of it as an “ultra low” satellite communications constellation. The model is similar to Iridium Communications Inc (NASDAQ:IRDM). Iridium is the acknowledged leader in global communications technology. Iridium’s hardware, a satellite phone, connects to a satellite and then to any phone in the world – global communications that are geographic agnostic.

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But Airborne Wireless Network (OTCMKTS:ABWN) believe they have gone one step better – their technology utilizes existing aircraft, hence no need to launch expensive satellites. If you look at a global map of airline routes one could certainly conclude that, intuitively, the vast amount of the earth’s surface is at some time flown over by an airplane with some regularity. And what if you connected a ground-based communication to all those airplane’s that are also connected to every other airplane in the sky? If Airborne Wireless Network (OTCMKTS:ABWN) proves this concept, voice and data customers virtually anywhere will now have connectivity without the expensive need for additional towers, cables, or satellites.

If you are thinking “what a great idea!” you are not alone and investors that got in early could be bragging for a long time. The patent for this technology was issued on September 4, 2001 and was obtained by Airborne Wireless Network (OTCMKTS:ABWN) in 2016. A little over one year later they have completed their proof-of-concept. Clearly this company knows how to move.

Airborne Wireless Network (OTCMKTS:ABWN) does not plan to sell the service directly to consumers, rather they see themselves as part of the global communication’s infrastructure. They will sell the bandwidth they create to existing communications providers. In essence, Airborne Wireless Network (OTCMKTS:ABWN) will act as a bandwidth wholesaler. A mobile phone user will use their service exactly the way they do now but, hopefully, with better geographic coverage and speed. The proof-of-concept results are clearly one development that communication’s industry executives and investors want to be aware of sooner rather than later.

I own (am long) shares of ABWN and have no plans to change any ABWN positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

Don’t miss out! Stay informed on $ABWN and receive breaking news on other hot stocks by signing up below for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Selling Pressure Continues for Shares of Asanko Gold Inc. (NYSEMKT:AKG)

Asanko Gold Inc. (NYSEMKT:AKG)

Asanko Gold Inc. (NYSEMKT:AKG) has hit back at claims from activist short-seller Muddy Waters that it is destined to run out of cash should gold prices not rally above the $1700 an ounce level. The company’s chief executive officer, Peter Breese, maintains the report has no merit, reiterating that a June 5 feasibility study will set the record straight. However, it appears Wall Street is not buying into the company’s defense.

Asanko Stock Implosion

In the wake of Muddy Waters report, trading on Asanko Gold Inc. (NYSEMKT:AKG) shares had to be halted after they dropped by more than 10% on the Toronto Stock Exchange. The stock has now shed more than 40% in market value since the start of the year and is at risk of going under the $1/share trading level.

In a research note to investors, Muddy Waters maintains that Asanko Gold Inc. (NYSEMKT:AKG) prospects remain bleak given that investments in Ghana were based on flawed geological data. The hedge fund states it does not expect production at the Nkran mine and other deposits to meet production estimates this year.

According to the hedge fund, failure to meet production estimates would make it hard for the company to stay cash flow positive as it continues to struggle to pay its $165 million debt. The company finds itself in a tough spot given that it cannot abandon its Nkran mine as that would cost between $75 and $115 million. Shutting down the mine is not an option given that cash flow from the mine is being used to finance other projects.

“The best-case medium-term scenario seems to be an extremely dilutive equity raise, possibly approximating half of AKG’s market cap. The worst-case scenario – and not a remote one in our view – is bankruptcy. Regardless, the stock is highly likely to end up worthless,” said Muddy Waters in its Report.

Asanko Outlook

Asanko Gold Inc. (NYSEMKT:AKG) has already refuted the hedge fund’s claims and reiterated that it remains on track to achieve its full-year production guidance of 230,000 to 240,000 ounce of gold this year. The Gold miner expects between $64 million and $77 million in cash, based on the production estimates and spot gold going for an average of $1200 an ounce.

Asanko Gold Inc. (NYSEMKT:AKG) sentiments on the street were dealt yet another blow by BMO Capitals Markets which affirmed Muddy Waters claims, reiterating that most of the issues raised were previously known.

Asanko Gold Inc. (NYSEMKT:AKG) dropped, again, in Wednesday trading session – shedding 31.02% in market value to end the day at $1.29 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Cumulus Media Inc (NASDAQ:CMLS) Getting Dropped from Analyst’s Play Lists

Cumulus Media Inc (NASDAQ:CMLS)

Various financial media outlets have reported that shares of Cumulus Media Inc (NASDAQ:CMLS) were downgraded on Tuesday by Zack’s Investment Research. But it seems that few paid have attention to the news. CMLS shares closed Friday at $0.40; they closed Tuesday at $0.47; and they are trading around $0.57 at 2:40 PM EST. To put a pencil to paper, that gives CMLS a 42.5% return since Friday’s close and over a 20% gain since yesterday’s close. The gains come alongside heavy volumes. Today over 1.4 million shares have been exchanged, or about 1 million more than their 30-day, daily average volume.

To be fair, the downgrade may be accurate however a little late. Or maybe a lot late. At the beginning of 2013 Cumulus Media Inc (NASDAQ:CMLS) was trading under $20 but would go on to hit above $60 by the end of the year. Then the wheels came off. By the end of 2015 investors could have picked up CMLS shares for under $1.50. CMLS shares never fully recovered and now are trading closer to their 52-week low of $0.22 than they are to their 52-week high of $3.60.

Cumulus Media Inc (NASDAQ:CMLS) has a novel business model. It operates radio stations in the mid-markets and currently reaches over 240 million people every week. Cumulus’ 447 owned and operated radio stations broadcast in 90 media markets and they have over 7,500 more that are affiliated with the Cumulus/Westwood brand. Importantly, Cumulus Media Inc (NASDAQ:CMLS) is the largest country music provider in the nation through its NASH brand.

Unlike many nano-cap firms, Cumulus Media Inc (NASDAQ:CMLS) share drop was not due to shareholder dilution. In 2014 there were 28.27 million shares outstanding and by 2016 that number increased just to 29.27 million. Sales have also been relatively consistent as in each of the past five years sales figures have come in between $1.00 million and $1.26 million. What has hurt has been the earnings losses. Although a small EPS profit of $0.40 was posted in 2014, in 2015 the EPS loss was (-$18.73) and (-$17.45) in 2016. So far 2017 does not look like any help will be coming as, for Q1 2017, Cumulus Media Inc (NASDAQ:CMLS) reported net revenue of $264.0 million, down 1.7% from the three months ended March 31, 2016, net loss of $7.4 million and Adjusted EBITDA of $38.7 million, down 7.6% from the three months ended March 31, 2016. No doubt that until earnings get turned around, no analysts will be lending CMLS their stamp of approval. I think in the radio business they call this a falling star.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Sears Holdings Corp (NASDAQ:SHLD) Rallies On Q1 Profit Even As Sales Decline

Sears Holdings Corp (NASDAQ:SHLD)

Sears Holdings Corp (NASDAQ:SHLD) was a big market mover after posting its first profit since 2015, helping fuel optimism about the impact of an ongoing turnaround effort. For the first three months of the year, the retailer says it generated a net income of $244 million compared to a net loss of $471 million a year earlier.

Cost Cuts Impact

Net profit in the first quarter comes on the heels of a cost-cutting push that has seen Sears Holdings Corp (NASDAQ:SHLD) spin off some assets as it sought to raise cash to stay afloat. However, the fact that the company’s core Kmart department stores continue to struggle, remains a point of concern for investors.

“During the first quarter, we took decisive actions to reduce our cost base and drive operational efficiencies which allowed us to make significant progress on our restructuring program. We also remained focused on increasing our financial flexibility and creating value from our asset base to ensure we continue to meet our financial obligations and fund our transformation,” said chief executive officer, Rob Riecker.

Sales & Cash Decline

Revenues in the first quarter totaled $4.3 billion compared to revenues of $5.4 billion reported a year earlier. The company has attributed the decline to fewer Kmart and Sears Full-line stores in operation compared to last year.

Comparable store sales declined by 11.2%, Sears Holdings Corp (NASDAQ:SHLD) having experienced a decline in sales in its grocery, household, pharmacy, apparel, and home categories. The same led to a decline in gross margin that dropped by $247 million compared to last year.

Selling and administrative expenses decreased $236 million in the quarter compared to last year – a drop that the company attributes to improves operational efficiency and reduced costs.

Sears Holdings Corp (NASDAQ:SHLD) market rally came as investors took note of Lambert’s turnaround plan that seems to paying off. However, with a shrinking store base and less advertising the company remains in a precarious position as it tries to return to its glory years.

The company’s cash balance dropping to $264 million from $286 million as of the end of 2016 is also a point of concern. While the company still boasts $3.7 billion in total liquidity, some investors are already starting to question the company’s financial health given the rate at which it is burning cash.

Sears Holdings Corp (NASDAQ:SHLD) stock was up by 13.52% in Thursday’s trading session, ending the day at $8.48 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Applied Optoelectronics Inc. (NASDAQ:AAOI) Trading Higher On Rise of Data Centers

Applied Optoelectronics Inc. (NASDAQ:AAOI)

Applied Optoelectronics Inc. (NASDAQ:AAOI) impressive run in the market shows no signs of slowing down given the upgrade cycle in the data center market. The company’s core business is poised to receive a major boost as more tech companies continue to upgrade to superfast communications for cloud-based services.

Demand for Fiber-Optic Equipment

The fiber-optic device maker boasts of the likes of Amazon.com, Inc. (NASDAQ:AMZN), Facebook Inc. (NASDAQ:FB) and Microsoft Corporation (NASDAQ:MSFT) as its biggest customers. Given that these companies are aggressively ramping up investments in the cloud means the company remains well positioned to register strong growth going forward.

Expectations of increased demand for fiber-optic components from China later in the year also continues to bolster analyst expectations for Applied Optoelectronics Inc. (NASDAQ:AAOI). Last year telecommunications companies in the country aggressively upgraded to 4G networks. However, the market experienced a slowdown early this year with recovery only starting to kick in.

Earnings Beat Impact

Applied Electronic’s first quarter earnings beat estimates which provided a glimpse of what is in store as the race for superfast data centers heats up.

“We continue to believe AAOI remains in prime position to see impressive growth in 2017 as demand for 100 gigabit-per-second optics accelerates. Growth in the data center business was once again driven by their largest customers, Amazon and Facebook (19% of sales). Microsoft has historically been a 10% customer, but was below that threshold this quarter”, “said Piper Jaffray analyst Troy Jensen.

Shares of Applied Optoelectronics Inc. (NASDAQ:AAOI) are currently trading at all-time highs, investor’s sentiments having been bolstered by a stellar showing in the first quarter. For the first three months of the year, the company says its revenue grew by 91% to $96.2 million from $50.4 million as of Q1 2016.

The company reported a net income of $19.8 million in the period, compared to a net loss of (-$1.3) million for the same period last year. Gross margin in the quarter soared to highs of 43.1% from 28.3% as of Q1 2016.

For the second quarter, Applied Optoelectronics Inc. (NASDAQ:AAOI) expects its revenue to be in the range of between $106 million and $112 million in line with the current growth momentum. Net income should be between $22.2 million and $24.3 million representing earnings per share of between $1.09 and $1.19 a share.

Applied Optoelectronics stock was down by 2.93% in Tuesday’s trading session ending the day at $69.15 a share.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Market Continues to Push Up Sorl Auto Parts, Inc. (NASDAQ:SORL)

Sorl Auto Parts, Inc. (NASDAQ:SORL)

Sorl Auto Parts, Inc. (NASDAQ:SORL) has beaten street earnings estimates four quarters in a row. It has not been above $6 for the past 5+ years but in the last few days SORL shares have been on a run and today are trading around $9.25 on huge volumes – over 25 times their 30-day, daily average. As might be expected, SORL’s Relative Strength Index (RSI) is 88+ – near nosebleed levels. Traders generally believe that a stock’s RSI is on “overbought” territory once it breeches 70.

Still, optimism is warranted. YTD shares of Sorl Auto Parts, Inc. (NASDAQ:SORL) are up over 130%, up 71% for the month, and up 57% for the week. Prior to today their 52-week high was $7.80 which was just $0.20 shy of the street’s target price of $8.00. That target price was shattered by this morning’s market action. SORL shares closed at $7.13 on Friday and opened at $7.47 before hitting and inter-day high of $9.50 as of 12:00 PM EST. Currently shares of Sorl Auto Parts, Inc. (NASDAQ:SORL) are trading over 165% above their 200-day simple moving average.

Although having a market-cap of around $135 million, the Chinese auto parts manufacturer is not covered by many analysts. That may change given the company’s past four quarterly earnings reports. Sorl Auto Parts, Inc. (NASDAQ:SORL) reported Q1 2017 earnings last week. Net sales improved by 37.4% to $74.9 million. Q1 2016’s figure was just $53.8 million. Gross profit increased by 42% over Q1 2016, and their margins increased from 26.8% to 27.8%. The real blockbuster number came in net income attributable to shareholders. In Q1 2016 that figure was $0.02 – for Q1 2017 it was $0.36. Impressive by any benchmark.

Sorl Auto Parts, Inc. (NASDAQ:SORL) management has increased annual guidance of net sales to approximately $315 million and net income of around $27.5 million.

Ms. Jinrui Yu, SORL’s Chief Operating Officer, stated “We continue to roll out new advanced braking products which immediately gain traction in the market due to their enhanced performance, added features and improved reliability. We have implemented stricter cost controls, purchased more advanced machinery and moved into new facilities to improve our efficiency and increase our profitability,”.

Of note is the lack of dilution of SORL shares. In 2012, the company reported 19.31 million outstanding shares – the same number they reported in 2016. It would not be unusual for a company to issue more shares over the years to raise funds for expansion related activities. However, to the credit of Sorl Auto Parts, Inc. (NASDAQ:SORL) they have managed increased sales and profits with any such need to dilute shareholder equity.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Marijuana Company Of America Inc (OTCMKTS:MCOA) Finalizes Joint Venture Agreement With Bougainville Ventures

Marijuana Company Of America Inc (OTCMKTS:MCOA)

Marijuana Company Of America Inc (OTCMKTS:MCOA) has announced finalizing a joint venture agreement with Bougainville Ventures, Inc. (“BV”) in Washington State. Marijuana Company of America Inc specializes in marketing and distribution of innovative cannabis and hemp products.

Following the agreement, Marijuana Company Of America Inc (OTCMKTS:MCOA) has rolled out $1 million in cash investment in the newly formed company. Bougainville Ventures, Inc will be tasked with contributing expertise to the ongoing construction of as well as management of the 30,000-sq. ft. greenhouse project which is expected to house a Tier-3 production and processing I-502 plant. Bougainville Ventures, Inc boasts of high experience spanning for decades plus a proven track record of quality and consistency. As part of the agreement, the two companies will share equity and profits from the new venture equally.

As landlords, MCOA and Bougainville Ventures will offer the I-502 tenant with a highly innovate state-of-the-art facility which creates a conducive environment for cultivation which they can move in and start operation immediately. This will enable the tenants to focus on producing high quality products without the worry of facility maintainenance. Marijuana Company of America President and CEO Donald Steinberg said the project will be helpful in expanding the company’s business in Washington State market. He added that the company is working completing the PCAOB audit which has been significant pillars in increasing the company’s shareholding.

The implementation of the agreement is the last step in making the Letter of Intent formal and fully operational. The main purpose behind the formation of the joint venture is to oversee the construction and management of greenhouses as well as commercial leasing to I-502 licensed growers in Washington State. The facility will be leased to cultivators in Washington State only.

Bougainville Venture Inc specializes in converting irrigated farmland which was traditionally used for growing marginally high profit feed crops, into new farmland states with state-of-the-art greenhouses used for cultivation of luxury crops with the focus on high-yielding and high-density crops. The company is engaged in the provision of agricultural services that focuses on offering cultivators with highly innovated computerized greenhouses and processing plants. Marijuana Company Of America Inc (OTCMKTS:MCOA) offers fully built and installed turnkey solutions to growers in addition to providing them with growing support and infrastructure.

Marijuana Company Of America Inc (OTCMKTS:MCOA) stock lost 4.41% to close at $0.0325 on a volume of 10.45 million shares.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.