Canada penny stocks

12/17/2024

I archived this page in early 2024 to focus on personal / private investments. In 2025 I will have the time to populate MicroCap.com with a significant amount of insight / education into the world of penny stock investing. If you would like to be notified when articles are posted, there is a function now on the MicroCap website where you can subscribe by email.

01/10/2024

https://www.fxstreet.com/cryptocurrencies/news/breaking-us-sec-approves-bitcoin-spot-etf-202401102047

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01/10/2024

BlackRock didn't become one of the world's most successful asset managers by accident. Their insight is worth paying attention to. Markets have done well recently because the herd believes the "opposite" is true.

https://www.businessinsider.com/blackrock-warns-federal-reserve-may-not-cut-rates-inflation-rollercoaster-2024-1

The world's biggest money manager warns that expectations for sharp interest-rate cuts may not materialize, given the risk of resurgent inflation.

01/04/2024

Canaccord was recently fined $475,000 by for their failure to detect "thousands" of wash trades from 2017 to 2021. is nothing new but an education in the practice should be a critical chapter in the "Unethical Promoters Handbook" of how to properly fleece / investors.

The fine is reported in a settlement agreement CIRO released Dec. 28. Over the years I would hear the term "wash trading" and "running a box" associated with . And this goes back well before the prevalence of online discount trading platforms.

Which means, stock brokers and the trading desks of many well known brokerage firms were well aware of this practice. But many conveniently chose to turn a blind eye. It's just easier now to get caught because of technology. Junior mining stocks were particularly susceptible to this nonsense.

FasterCapital from the UAE has a good overview - Wash Trading: How It Distorts Prices and Misleads Investors [Nov 2023]

https://fastercapital.com/content/Wash-Trading--How-It-Distorts-Prices-and-Misleads-Investors.html

12/28/2023

https://www.forbes.com/sites/brandonkochkodin/2023/12/27/attack-of-the-naked-short-sellers-mythical-beasts-of-the-night-or-how-meme-stock-investors-went-cult-y

To paraphrase Mark Twain, it’s easier to fool people into believing they’ll make piles of money than it is to convince them they’ve been fooled. Here’s the true story of stock investors who smoked so much “hopium” they lost their shirts — and their minds.

12/22/2023

Year-end bottom fishers may want to dig deeper into Cronos (CRON:TSX $2.56) and potentially watch for pullbacks into the $2.30's or $2.40's. The sector "sucks" but cash-rich Cronos still offers attractive risk/reward. The stock is frequently traded by bots skimming pennies but underlying this "black box" trading are strong fundamentals supported by the strongest balance sheet in the *****na industry.

Their operational burn is still too high but they continue to make progress (albeit not enough yet to attract institutional investors). Offsetting that burn, is substantial interest income - Q4 should exceed U.S. $13M. This interest income brings them close to break-even and they are hoping to be cash-flow positive in 2024.

During the sector rally early September (driven off American cannabis rescheduling speculation), bounced 50% off their lows. The more well-known names with operations in the U.S. gained 100% to 200% over two weeks - but they have now lost that.

As destruction continues throughout the industry and many companies file for bankruptcy or are forced to merge for pennies on the dollar, Cronos will be ideally positioned to pick up the more lucrative "pieces".

Larger investors believe they are not putting their cash to work properly, but it is a hard argument to make when they can make a boatload of interest income.

*****nastocks

12/08/2023

On my MicroCap website I have started tracking anyone charged or investigated by securities regulators. From 2012 to date I have 734 people and add to it weekly. https://microcap.com/database . Sadly, the huge majority of people who scam or exploit investors, just walk away. And if they are caught, they pay a token penalty and simply state that they did nothing wrong.

And for every "one" that is caught, there is a long list of friends and business partners (including brokers) who made a pile of money. Often they do nothing criminal BUT entirely unethical - or skirt securities regulations by finding loopholes. Whether it's the , or - the system is designed to exploit smaller, retail investors / gamblers.

The American is an entirely different market that shouldn't be allowed to exist. That trading "system" is nothing short of a joke. You cannot even call it a stock exchange.

11/21/2023

I have updated my valuation table after Q3 financials. PDF version at MicroCap.com/PDF. For the most part, Canada is now the "International Poster Child" for how to F%$ # Up the legalization of cannabis in your country.

The sector remains a mess as government essentially rewards people for doing business illegally. Opportunities will exist outside of Canada where high taxation, low prices, and the grey market continue to weigh heavily on legal companies. The huge majority of legal cannabis companies are struggling financially and drowning in debt - including many who cannot pay their taxes.

With huge amounts of excess inventory, they are pushing product out the door at depressed prices to generate cash. Nothing is being done to reduce taxation or crack down on illegal operations - who don't pay taxes, have no THC limits or packaging restrictions, and none of the admin costs associated with doing business legally.

Consumers looking for safe product, quality and consistency will buy legally. But only those legal companies with high quality, brand loyalty, and differentiated products will survive as they can typically command a higher price. At least until excess inventory is gone and more growers shut down operations or go bankrupt. We know the government won't do a thing to stop illegal operations so this is what will be required moving forward.

*****na *****nastocks

11/13/2023

As a shareholder of Mogo (MOGO $1.60 / ) I track (WNDR:TSX $0.14) as is their largest shareholder. Wonderfi just reported financials and for a microcap they are kind of "killing it". They have multiple divisions including one of the world's only fully regulated crypto exchanges. And with on a tear, Wonderfi is in the right business, at the right time.

They have one division that is cash-flow positive and note below their subsequent events. They are exhibiting substantial growth and this is exactly what a microcap investor wants to see. Great for both Wonderfi and Mogo. Obviously a very well run company.

Due diligence - Mogo.ca and Wonder.fi

09/27/2023

An important development for cannabis companies doing business in the United States. Hurdles remain, but this was a big hurdle.

https://www.forbes.com/sites/irisdorbian/2023/09/27/senate-committee-passes-cannabis-banking-bill/

*****nastocks *****na

It looks like the SAFER Banking Act, the renamed bipartisan bill that would allow banks to work with cannabis businesses without penalty, is gaining some traction-finally.