On the OTC Markets, there are a lot of pump and dumps. Investors need to protect themselves from these types of scams and one, in particular, is Rainmaker Worldwide Inc (OTCMKTS:RAKR).
OTCMKTS:RAKR Price Action
While the price action recently has been positive, it’s just a matter of time before RAKR is trading in the double zeros again. It’s not a question of if it will happen, but when it will happen.
About Rainmaker Worldwide
According to its profile, Rainmaker Worldwide Inc. is headquartered in Peterborough, Canada, with an innovation and manufacturing center in Rotterdam, Netherlands. Its patented water technology provides economical drinking water wherever it’s needed and at scale. Rainmaker builds two types of energy-efficient, fresh water-producing technologies to participate in this opportunity. 1. Air-to-Water, which harvests fresh water from humidity in the atmosphere. 2. Water-to-Water, which transforms seawater or polluted water into drinking water.
Lack of Fundamentals
The biggest concern facing investors is the lack of fundamentals. OTCMKTS:RAKR has a current market cap of $41 milli0n, but reported just $1000 in sales in the quarter ending September 30, 2019. Making matters worse is that Rainmaker burned through $524,000 in the quarter. Throughout its history, Rainmaker has lost $14.7 million.
EU Horizon 2020 Project and $2.5 million grant
Last September, Rainmaker touted the award of the European Union (EU) Horizon 2020 Project for Rainmaker’s Water to Water Product. According to the press release:
After a two-year process of due diligence by the European Union, Rainmaker was granted a Grant for more than 2.5 million USD to develop a Water to Water solution in the Canary Islands. It will be 100% powered by renewable energy. The only desalination of its kind using only renewable energy.
While $2.5 million is a nice grant, at the time OTCMKTS:RAKR had $6.5 million in total liabilities. While the headline attracted investors, the reality is that the company was in the hole $6.5 million and had just $1000 in revenues.
Old CEO Returns
Kicking off this month’s promo campaign was the news of a new CEO being appointed. The problem is that he is the former CEO who cost shareholders a lot of money. According to the press release announcing the appointment of Michael Skinner:
Michael was previously the Chief Strategy Officer of Rainmaker Worldwide, Inc. from 2015 to 2017 and was part of the executive team that took the organization public on the OTC in 2017.
And look at the chart under his tenure.
Former GE Executive joins as Strategic Advisor
The latest news from Rainmaker Worldwide is that former GE Chief Investment Officer Aris Kekedjian is the company’s new Strategic Advisor effective January 22, 2020. Isn’t this a big deal? Not really.
You see, Mr. Kekedjian’s 30-year career at GE included leadership of the mergers and acquisitions team at GE Capital from 2010 to 2016, when the group executed tens of billions of dollars in deals. This is why the stock of GE has collapsed. The new CEO is having to undo the mess created by Mr. Kekedjian. It’s no wonder that he is now forced to serve as a Strategic Advisor to a penny stock like OTCMKTS:RAKR.
As you can see from this article, Rainmaker Worldwide Inc (OTCMKTS:RAKR) does not warrant a $41 million valuation. Currently trading at $.39, it’s only a matter of time before the stock is back at double-zeros. Don’t become a bagholder by staying in the stock.
Disclosure: We have no position in OTCMKTS:RAKR and have not been compensated for this article. This is a public service announcement concerning OTCMKTS:RAKR.
Is CytoDyn Inc. (OTCMKTS:CYDY) A Buy?
CytoDyn Inc (OTCMKTS:CYDY) has been making big moves lately, which have propelled the stock from December low of $0.270 to new highs. Notably, CytoDyn’s surge has come on significant volume as well, a clear sign of strong investor interest in the stock.
The excitement in CytoDyn stock that we are witnessing right now comes as the company has taken a leading role in the fight against the deadly Wuhan coronavirus. Moreover, investors have started pouring on CytoDyn stock as the company advances the development of its lead drug candidate as a treatment for about two dozen different cancer types.
Before we delve into the details, here is a brief profile of CytoDyn for those investors who may have just come across this company for the very first time.
CytoDyn operates in the healthcare sector as a biotechnology company. It is engaged in developing innovative treatments for a broad range of medical indications. Its lead product candidate is leronlimab (PRO 140). Clinical trials of leronlimab are ongoing for conditions such as HIV and multiple cancers with impressive results already attained. But CytoDyn is expanding its target conditions with leronlimab in the wake of the outbreak of the Wuhan coronavirus.
Here are some of the recent developments at CytoDyn that have excited renewed investor interest in its stock.
CytoDyn’s leronlimab under consideration as Wuhan potential coronavirus treatment
CytoDyn’s lead drug candidate leronlimab (PRO 140)…
County Line Energy Corp. (OTC: CYLC) Could Soon Become the Next Household Name in the Actively Growing Legal Marijuana Space with its Revolutionary Grow Box Systems!
After a terrible 2019, pot stocks are positioned for a massive turn around this year and County Line Energy Corp. (OTC: CYLC) could experience one of the biggest bounces of them all!
There’s no denying that 2019 wasn’t the best year for marijuana-related stocks. In fact, pot stocks had a very sour year. From its March peak, the marijuana-focused ETFMG Alternative Harvest ETF (MJ) lost half its value before the year even ended.
But what a start to 2020 for cannabis on Wall Street… There has been a monstrous rebound already with marijuana-related ETF’s soaring!
In just one week in January the Horizons Marijuana Life Sciences Index ETF saw an increase of 19.11%, the ETFMG Alternative Harvest ETF gained 13.87%, and the Cannabis ETF advanced 16.9%.
“Cannabis stocks seem to be slowly inching their way out of the bear market they’ve been in,” commented Debra Borchardt, CEO of Green Market Report. She added, “We’re seeing companies make adjustments to cultivation plans, restructuring debt and merge for strength as markets open more slowly than planned. Improvements in valuations are sure to ease the concerns of many investors.”
From an oversupply of marijuana and little progress towards federal level legalization, 2019 was a bust for the arena. 2020 however could be shaping up to become a tremendous year for cannabis stock gains.
The industry is politically driven and this is an election year. It also helps that nearly all of the…
Why Lexaria Bioscience Corp (OTCMKTS:LXRP) Is A Comeback Play
Lexaria Bioscience Corp (OTCMKTS:LXRP) brightest days lie ahead. The sentiments shared by Chief Executive Officer, Chris Bunka, are slowly coming to fruition, going by recent price action activity. After a steep pullback in 2019, the stock has once again started climbing higher, as investors react to milestones achieved in 2019 that affirm long-term prospects.
Lexaria Bioscience Catalysts and Price Analysis
A confirmation that the global innovator in drug delivery systems achieved almost everything it set out to accomplish in 2019 continues to strengthen market sentiments. The inking of strategic partnerships with Fortune 500 style companies is another development that the management continues to tout.
Likewise, Lexaria Bioscience succeeded in getting its DehydraTECH technology to market, consequently creating an avenue for generating long-term value. The company’s Intellectual Property strategy has also started to pay dividends, affirming what is at stake going forward. Reports that the company is already experiencing an increase in revenues is another catalyst that continues to shore the stock’s sentiments and prospects in the markets.
Lexaria Bioscience has already started bottoming out from all-time lows in what appears to be the development of a positive trend. A 10% plus rally from one-year lows continue to fuel optimism that the stock has clocked a bottom and due for a correction higher.
Standing in the way of the emerging uptrend is the $0.50 mark, which is the immediate short-term resistance level. A rally followed by a close above the…