$SBES’s stock was abused yesterday as traders reacted to a new badge that populated on South Beach Spirits’ OTC profile.
Recently OTC Markets alerted the community of a control dispute involving SBES as it transitionedownership. So naturally we reached out to our constituents, who shall remain nameless, and received this response.
Apparently someone from the old organization is holding up the process.
While in general this is viewed as a positive (being that it confirms there is something worth fighting over…) it didn’t bode well for the PPS in the short term.
The stock closed out Tuesday’s session at 13 basis points, down more than 50% from its recent high.
However, there is light at the end of the tunnel.
The management team of $SBES is first class, and while they’re playing their cards close to their chest by not revealing any information about the merger, they are being responsive and actively working on the issue, and communicating to the valued shareholder.
This is a serious boost of confidence, and shows that the team working behind the scenes are focused professionals!
It shows strength 💪, and if/when this management team resolves the dispute and submits their filings, expect the price to come roaring back to the yearly highs and beyond.
[April 1st, 2019 Copy]
Sometimes the OTC can feel like a desert, and for $SBES investors that reality is ever more present with the current gag order in effect.
Last we heard, $SBES was sold away from the Mina Mar Group to what appears to be a mergers and acquisitions company in China, Golden Panegyric, Inc. (You’ll probably have to hit the translate button…).
Turns out they were getting so many inquires that they updated the website with one final notice to investors. See it for yourself, https://sbescorporate.com/.
Amanda Zhao, acting President of $SBES, also politely declined to speak on the matter when asked about the reorganization process over the phone due to the NDA.
I have even personally penned emails to Chen Limin, legal advisor and Director of $SBES, to see if I could get even the slightest acknowledgement, but yet to no avail. #iced
You would think that if they weren’t managing the transition, a cordial “no” would suffice as a response…
Here we have a legitimate company brokering what appears to be a reverse merger with an expanding international organization. The due process of such a bureaucratic ask can be, for lack of a better word, dull. There are considerable lulls in the markets during these moments of silence, and investors can be a precarious bunch.
Which brings me to my point, relax.
I think Simon Sinek said it best, and captures a core pillar of my personal investment philosophy.
Invest in people.
Meihua Xu is the listed Treasurer and Secretary of South Beach Spirits, Inc. according the NVSOS filing.
This particular group has gained control of multiple stocks in the OTC, and their sole purpose is to give growing companies access to fluid capital markets.
As investors, patience is a virtue (until it’s silence burns you…).
The truth, from our perspective at least, is that nobody really knows what’s beyond the horizon with these incoming organizations.
What we do know is that every affiliation points to a reverse merger, and the people behind the transition are networking with the Canadian Prime Minister. I mean, it doesn’t get any more high-profile than that, and in a country that just legalized a novel cannabis industry to boot.
I’ll leave you with one last picture from the feed of Robert Xu.
Could this related to the $SBES project? Only time will tell…
It looks like there’s a new kid on the block.
With recreational use of marijuana now 100% legal in Canada, international competition is beginning to emerge.
Just recently traders have uncovered a developing international infrastructure with strategically positioned businesses slowly being consolidated under one management team.
The most recent addition to this economic ecosystem is South Beach Spirits, otherwise referred to by its ticker symbol $SBES.
Updates landed on NVSOS just a few days ago, and the newly listed officers manage multiple operations that appear to systemically establish an international cannabis trade pipeline.
Have a look.
The involved officers seem to be building a significant business presence that coincidentally revolves around “agriculture.” With cannabis legalization now passed and (essentially) fully functioning in Canada, world legalization and distribution is inevitably on the horizon.
The new officers are also strongly linked to another trending company, Zalemark Inc. ($ZMRK), who’s stock recently had an immaculate run and is rumored to be merging with a marijuana titan.
Here’s $ZMRK’s lineup. Notice anyone familiar?
So where does $SBES fit in?
The management team that recently assumed control of $SBES has a strong resumé, with years of experience leading public enterprises and an influential network of partners.
Another business connection of note that points towards the rising cannabis industry is Blue Sky Greenhouses. Rumor has it they have very close relations with the new management team as well.
In fact, there are so many rumors we can’t cover them all in one place. Just look at this list of officer affiliations. How many recipes for success can you come up with?
In summary, it looks like a rather large presence is encroaching on Canadian soil and opportunity is knocking at the door!
It is our opinion that the newly established officers for $SBES are strategically aligning multiple business interests to better facilitate international trade between the east and west.
When you think of the global cannabis and hemp economy, it can be hard to wrap your head around the scale and magnitude of this type of project.
The upside could be parabolic.
Update us in the comment section if you have more information about this emerging event.
Okay, Serious question…
You’re invested in CBD, hemp, and cannabis stocks, but have you actually tried any of the products for yourself?
I have been absolutely floored by the number of investors who are willing to put their money on the line without ever trying the product first hand.
How does that make sense?
If you’ve never experienced the health benefits of CBD, why not take 5 minutes and try it out for yourself? It’s convenient, tracking is discrete, and you’ll have a much better idea of where your money is actually going in the long run.
If you’ve been following our blog at all then you’ve probably seen the rise of South Beach Spirits [$SBES] this week.
The anticipation of a merger has traders on the edge of their seats, and many have already found reason to take a position.
Let’s bring everyone up to speed.
The January 8-K filed by the interim management revealed that the Mina Mar Group was now a preferred shareholder and had invested interest in the shell corporation.
The interim management actually did their job, and did it well.
Now, when Mina Mar is involved, it usually points towards a merger of some kind. The Mina Mar Group sells corporate financial structures to businesses looking to grow their consituent base.
As you can see from our previous article, we believe a foreign entitiy is working with the Mina Mar Group to establish an aligned business presence in Canada. The industries are rumored (and I emphasize rumored) to be biopharm or cannabis related…maybe both, but I digress.
This quote summarizes the article quite well.
It is our opinion that the newly established officers for $SBES are strategically aligning multiple business interests to better facilitate international trade between the east and west.
Needless to say, the recent developments of what we believe to be a material event has our full attention.
The significance of a material event, such as the change of management or the aquisition of a corporate entity perhaps, is that it must be reported to shareholders in a timely manner, usually within 2-3 days.
It’s worth mentioning that many of the new directors of $SBES also hold leadership positions with $ZMRK, another recently revived organization that has faired rather well as of late.
The management team has established a track record of success.
It goes without saying, when the community received word that Mina Mar had finalized the sell of $SBES, we were ectstatic!
We learned from a community member that Mina Mar had completed the transaction and were now entirely out of the picture.
The message was very short and sweet. So I asked @weezus420 directly for more details to support the claim, and he came through generously with this.
As you can see the time and dates are apparopriate, and the story adds up, but I wasn't the only one who had questions.
Another community member had to hear it from the horse's mouth.
[The preferred shareholder mentioned below is Mina Mar Group as referenced in the 8-K filing from 1/28/2019. Mina Mar recently requested that their name not be used on the investor site ihub, thus the abstract reference.]
The same response as before and the verdict is in.
Mina Mar is no longer involved with $SBES, which means we should start seeing filings from the new management team hit the wire very, very soon.
Currently the market cap resides at a mere $1.87MM when the reality is there could be a 50M million dollar company setting up shop.
Growth from these levels could be enormous.
Another company making moves on the international stage is GoIP Global.
News recently dropped that confirmed the company is in the process of negotiating with the Kenyan government to grow and develop a cannabis and industrial hemp export network.
The current negotiations cover an initial lease of 500 acres for production, which can be expanded significantly. The lease term will be for 25 years. Kenya being on the equator provides the best conditions for year round production coupled with being a major agricultural export country, will allow Kenyan Cannabis production to fill the need for Medical and recreational Cannabis demand for the European Union and Canada.
With countries like Canada and Israel now participating in the legal marijuana space, international trade is inevitable.
It's pretty clear that cannabis is going to be an economic stimulant for the entire world and Kenya is prime real estate. It's exciting to see an accessible organization take the lead on developing this highly anticipated infrastructure.
I wish this update was all sunshine and rainbows, but it’s more like the wild, wild West.
In true form, $LGBS announced a merger this morning in the cannabis sector and the stock took off beautifully as expected, for all of about 7 minutes…
Let’s just say it was a bloodbath. The stock plummeted to $0.0007 where it finished the day.
It was a miserable event to witness, and even worse to experience.
There seemed to be some notion of convertible debt dumped into the float once news was released.
Understand, sometimes it isn’t about price for the financial lenders, it’s about quantity. They may have an enormous amount of equity and need immediate cash. It isn’t about controlling the price, but attracting as many buyers as possible. Then they unload as many shares as they can above a certain price threshold.
Like their predecessor, LGBS turned into another sketchy disappointment, and is a prime example of what gives the OTC a scammy reputation.
Yeah, I said it…
Legends Business Group ($LGBS) is a closely watched stock as of late but seems to be caught up in controversy, and traders are chomping at the bits.
PR released earlier today stated that a new venture is about to be announced, but first LGBS has to bring their OTC profile back to current status.
Here’s their most recent tweet (grammer and all…) which confirms that they have indeed submitted their otc paperwork.
Let’s take a look at the rest of their feed.
As you can see, it took four days to complete the NVSOS update, but LGBS followed through on their word and got the job done. In turn the stock saw a nice little bump and corresponding correction which brings us to our current PPS.
Rumor has it that $LGBS is embarking on a joint venture with Algae World 2020. Algae World is a subsidary of KYNC… and there’s the drama llama.
KYNC recently went through a promotional period and their stock had an enormous run. Unfortunately the company also had a substantial amount of recently converted debt spill into the float and depreciate the price.
Traders call this “dilution,” and it’s a dirty, dirty word.
LGBS has publicly commented that they do not have a deal with, nor even know of any mention of KYNC, and why should they?
Their business dealings have been with Algae World 2020, not KYN Capital. In fact, it could be possible that KYNC’s little fund raise could be used to finance the Algae/LGBS project, but I digress.
This brings me to my final point. The community has created controversy primarily for their own amusement, and in spite of themselves…
Much like the $SNMN/$TLRY fiasco, traders on social media made one too many assumptions and spoke out before doing their due diligence. It’s an unfortunate side effect of having an overly engaged audience.
On a positive note it did provide ample opportunity for traders to buy the dip. A few lucky traders were able to get their bids filled at $0.0009, but most had to enter above $0.001 which should still provide plenty of upside in the days to come.
The real question is what exactly do Algae and LGBS have up their sleeves? We caught wind of a joint venture, but no other details have emerged.
All in all, it is my personal opinion that the stock has been arbitrarily held down and is poised for growth.
I don’t preach conspiracy theories, but it appears that certain traders spread broad cloth assumptions about this company’s relations in order to help their peers load the boat, and attempt to control the float.
Why would groups fight over who controls the float?
They think this stock is going somewhere, and everyone wants a piece of the action.
It’s been a rollercoaster these last few weeks in the OTC. Questionable corporations and over enthusiastic shareholders have created a made-for-TV drama on social media.
$SBES just made a news splash on everyone’s radar with an update to its officers. Originally we reported on this stock as a channel trader, but turns out there was something much bigger brewing beneath the surface.
This photo was snagged from Twitter, and is the quickest way to explain the impact.
As you can see, $SBES now shares some of the same officers as $ZMRK and we all know of that company’s recent run from $0.0007 to $0.0194. Plus, the chart for $SBES shows a solid amount of accumulation over the last few weeks. So this ticker may be primed for takeoff.
So the question is, will $SBES be this management team’s next big success story? Only time will tell, but we’re eager to find out.
Secondly, let’s touch on what happened with $SNMN. Not to put too fine a point on it, but shareholders got carried away and began reproducing a false rumor on social media that simply wasn’t true.
Traders confused two separate companies, “Livwell” and “Livewell.” The former has a relationship with Willie’s Reserves, and the latter with the infamous Tilray Inc.
Long story short, traders assumed that $SNMN was linked to $TLRY through their equity interest in Baygrow who has a deal with Willie Reserves who in turn has a deal with “Livwell” which was confused with “Livewell” who is actually the company linked to Tilray… (Did you follow all that??)
It’s a long game of connect the dots, but once the community figured out that the connection to Tilray wasn’t real, it sapped all of the stock’s momentum and induced a large sell off.
Although the $SNMN/Baygrow/Willie connection is real, nothing is going to match the hype of a Tilray partnership.
Some tickers leave traders biting their knuckles by turning fractions into cents and dollars. A well known example is $ICPA which ran from $0.0008 to $0.0585. A $10,000 position would have banked $700,000!
The most recent Washington runner (almost a full Washington) was $SHMP, which at the beginning of 2019 traded as low as $0.0155 cents, but on February 12, 2019 the stock reached a high of $0.95 for an impressive gain in a relatively short amount of time.
To put things in perspective, a $1500 position would have turned into $89,062.50.
Not a bad haul for a month of patiently twiddling your thumbs…
So where’s the next big winner?
Here’s our list of trip zips that needs your attention ASAP. Multiple catalysts are on the horizon and these prices might be long gone when news hits the wire.
Let’s start with the low floater.
$SWHI has a fantastically low float for a ticker still printing trips. It won’t take much dollar volume for this one to move north.
As for news, rumors surround $SWHI about pending mergers, new partnerships, yada, yada, yada.
Bottom line, nothing has been officially announced by the company. Last we heard they were expanding into the broadband internet business and haven’t heard much from them since.
Even so, the smallest update could send this one soaring. Their share structure is immaculate and a prime example of a well maintained stock.
Next let’s talk about catalysts, catalysts, and more catalysts.
With $SNMN, steady organic growth is the name of the game (at least we hope). SNM Global is an equity company with their hands in multiple partnerships, one in particular connected to the budding cannabis industry on the east coast has us very excited.
$SNMN’s recent activity can be summed up in one picture.
It goes without saying, but the fact that SNM Global has a 20% equity interest in Baygrow is extremely appealing.
Baygrow has recently applied for a prestigious Growers License in Maryland, and enlisted the help of some pretty heavy hitters.
We don’t have time to get into the details here, but if you don’t know about Jennifer Sanders with AURA Ventures, you should… but we’ll have more on that relationship later.
Finally, trading the chart.
$SBES has been channeling between $0.0006 and $0.0012 over the last few weeks. If the pattern holds, this should be an easy 80% swing.
Check the chart.
The debate here is whether we are looking at a double top, or a double bottom. The jury is still out on this one, but at these prices the reward significantly outweighs the risk.
Here’s our current watchlist for the week of 2/25/2019.
Traders: $BRKK $LEAS
Long Growth: $NGTF $PHGRF
Momo Watch: $HDII $CRSM
Let’s talk about $LEAS. Friday it set a new yearly high of $0.0028 and has been experiencing healthy, consistent growth largely because of one simple fact. The MMs are not selling, which indicates that all dilution has been turned off for the time being. Why, you might ask? We’ll get to the fundamentals here shortly, but first let’s look at some charts.
Allow me to illustrate what I mean by healthy growth.
Item 1 – The moment news of their updated transfer agent and share structure hit the wire, early pioneers loaded up and created an overbought situation.
Item 2 – Selling stopped but demand continued. You can see that the hard correction on the backside of item 1’s RSI (illustrated above) did not result in a reduced PPS. Instead it created something that resembled a flag setup. However the following buying curve once again resulted in an overbought situation, and this time the RSI reset did normalize the share price. However, this move succeeded in establishing a higher support level, and the trend continued upward.
Item 3 – This is where it gets fun, and is indicative that something more, something potentially verybig is just beyond the horizon. This area of the chart is where the MMs really took control, and as they negotiated their positions the price slowly crept higher and higher. You can see that the stock’s growth was balanced with plenty of traders taking profits along the way, but despite the profit taking demand pressure continued to push the price forward. Even though we saw considerable price appreciation, the RSI never traveled into overbought territory. This indicator is strengthened by Friday’s late afternoon sell-off when the RSI plummeted into oversold territory, yet the price sustained its higher support levels.
This week was short, only consisting of four trading sessions and the sell-off Friday was somewhat expected. There are plenty of traders who do not allow themselves to hold over the weekend. Plus, the stock has seen substantial growth over the last few days and profit taking should be expected. It’s how profits are taken that impact the stock’s performance.
With $LEAS we have seen steady consistent growth which indicates that the prices are fairly stable at this point. We saw the RSI reset Friday afternoon, and as expected a higher support level was created at $0.0022.
There are also two significant bullish indicators that lead me to believe that $LEAS still has much more in the tank.
Item 1 – Notice the volume, where we see consistent buying behavior and persistent spikes in demand. Even as we endured wave one of the late afternoon correction there was an overwhelming willingness to buy and the price recovered 4 basis points rather quickly, only to encounter the third correction wave which took the PPS down to $0.0017.
This price was obviously viewed as a bargain because the very next move was damn near a full engulfing candle. Demand never faltered and the stock moved back up to a solid support price of $0.0022 instantly. You can see a healthy green spike in volume at the very end of the day which sets us up for a very bullish week ahead.
Now let’s dig into some fundamentals.
The company is in the process of updating their OTC markets profile and having the stop sign removed from their listing. Right now, the company isn’t officially allowed to communicate valuable information to their shareholders because of their non-current status, but all of that is about to change.
If you haven’t already, take time to read Thursday’s article that contained valuable DD and email correspondence from $LEAS.
Shareholders received notice from the company Friday via twitter that $LEAS would be granted access to their OTC account come Monday February the 25th, and they could then begin updating their profile.
Once their profile is updated and approved, they can then begin sharing information about the company’s recent developments.
So here’s the play.
$LEAS’s share structure is spectacular with ~700MM shares outstanding, and there is no visible dilution occurring at this time.
Knowing that news is just around the corner, investors are trying to accumulate as many shares as they can at these sub penny levels and the rise in demand has caused the price to appreciate. Conceptually it’s very simple.
The excitement stems from how even the slightest bump in revenues will have a dramatic impact on the PPS due to their advantageous share structure. Much of the float is locked up and it doesn’t appear that many of the MM’s are actively selling.
To put things in perspective. If we see a reverse merger and the company starts showing $5MM in revenues, then logically we could assume a targeted market capitalization of $5MM. Even with such a modest outlook we’re still talking about 300% gains, and that gets people excited!!!
News is expected to drop next week as $LEAS continues to clear up the murky waters and reveal recent developments to eagerly awaiting shareholders. Until then traders are expected to keep jockeying for position, because when press hits the wire it’s going to be off to the races.
BRK Inc. has a VERY interesting chart with multiple indicators and patterns that can help to understand its movements. Take a look…
Item 1 – An obvious head and shoulders pattern with a three wave Elliot correction on the backside of the head (indicated above by the line in the oval). If you haven’t read up on Elliot Wave Theory follow the link and take time to do so now. The base of the correction resulted in the right side shoulder, which then induced another three wave correction.
Item 2 – Another three wave correction indicated above by the downward trend line. Most important aspect of Elliot Wave Theory is understanding patterns so you can try to predict when the pattern will end. In this case we saw the correction wave and could feasibly guess it’s conclusion, which brings us to item three.
Item 3 – An upward trend. Starting with the graph, line 3 shows us that the stock has once again started to create higher lows, and resemble those stair step patterns we love so much. What makes this indicator even stronger is the upward trend resulted from very low volume. This tells me that there is not a lot of selling occurring and everyone is holding on tight. Also, even though the price has once again started to appreciate, there has been very little effect on the RSI because of the lower than average volume. This indicates that there is still much more room for growth.
Going into next week, $BRKK is on high watch status. This ticker could be a very viable trader and I beleive there is money to be made.
$NGTF $HDII $CRSM $SGMD $HIPH $PHGRF $AITX and $GCGX are just a few tickers that should be on your watchlist. We are tracking their development very closely and will be reporting if/when there are significant changes to their sentiment.
Thanks for reading and be sure to follow us on twitter @themoneyshire.
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Here’s what’s on deck for February 20th, 2019 in the OTC.
Traders: $BRKK, $ATWT, $MXMG
Long Growth: $NGTF, $PHGRF
Watch & Load: $BANT $ETEF $CRSM $LEAS
$BRKK – Owns proprietary helmet camera technology and recently came out the victor of a recent lawsuit. They now have a patent pending.
$ATWT – Has a small share structure and very low liquidity. It won’t take much volume at all to get this one running. Also be aware of the low liquidity. Don’t get trapped.
$MXMG- Maxima Group spent the whole day caught in a bear trap, but the volitility produced enough price swings to make some money. If this doesn’t show a reversal soon, I’d expect it to run its course by the end of the week.
$NGTF- All the fundamentals are there. National distribution of a consumer product with mass market appeal. Let me put this into perspective. Nightfood’s goal is to have it’s ice cream in 10,000 locations. CVSI has consumer product in 2000 locations. Plus Nightfood owns MJ Munchies and the Half-Baked brand. They are moving at the pace of the legal system, not pushing the boundaries too much, and fundamentally that is very strong in my book.
$PHGRF – This company is growing very quickly through the Canadian healthcare system. They now have an integrated cloud system with over 3MM patients. They are also expanding their services into the Chinese market.
$BANT $ETEF $CRSM $LEAS – These tickers are on watch. There is chatter on the boards and potential catalysts on the horizon. I encourage you to go perform some due diligence, and research these companies. They are in their preloading stage, and have potential to produce momo at some point in the near future.
If I’ve made any mistakes or omitted relevant details, let us know in the comments below.
Nothing on this website should be considered financial advice.
In effort to be transparent and honest with our conversations about money, current holdings along with their corresponding wealth management strategies are published and routinely updated for educational purposes. This is not an effort to promote or recommend any individual company, stock, or mutual fund, but to provide accountability and lead by example the behaviors of our advocated philosophy.
Our goal is to help initiate conversations about mitigating risk while being exposed to the financial markets. We advocate and encourage our readers and community to consider and apply balanced wealth management principles while managing their personal portfolios. We hope to educate and help individuals think about their money, how to accumulate and protect their financial assets.