Geometry Dash APK Hill Climb Racing APK
87.2 F
New York
Monday, August 8, 2022

MMEX Resources Corp (OTCMKTS:MMEX) Raises Some Huge Questions

Must read

Is Tilray Inc (NASDAQ:TLRY) Stock a Good Buy After The Recent Fall?

The cannabis sector may have had a hard time not too long ago but over the course of the past months, the...

Sysorex Inc (OTCMKTS:SYSX) Stock Still Riding Big News

Investors are always drawn to stocks that make a big jump out of nowhere. So it's no surprise that Sysorex Inc (OTCMKTS:SYSX)...

88 Energy Limited Ltd (EEENF) Update: Continues Climbing on Significant Volume

Investors who might be looking for stocks that have made considerable gains in recent weeks could consider having a closer look at...

Victory Resources Corporation (OTCMKTS:VRCFF) Stock Rockets After Announcing A New Acquisition

Nowadays, lithium is in huge demand across several industries and hence, it the rally in the Victory Resources Corporation (OTCMKTS:VRCFF) stock the...

MMEX Resources Corp. (OTCMKTS: MMEX) is a micro cap energy play getting some fresh attention. It seems there’s a good reason why Texas-based MMEX Resources Corp. (OTCMKTS: MMEX) has been attracting so much attention from traders of late: the company continues to hype up its plans to build a $450 million, 50,000 barrel per day crude oil refinery in the West Texas Permian Basin. On YTD basis, shares of the company are up 53.38%.

Shares of MMEX are currently trading at $0.02, giving the company a stock market capitalization of $49.17 million. Over the most recent 52-week period, shares of MMEX have traded as low as $0.00 and as high as $0.06.

MMEX Resources Corp (OTCMKTS:MMEX) is a development stage company formed to engage in the exploration, extraction, refining and distribution of oil, gas, petroleum products and electric power. That’s where the West Texas Permian Basin refinery comes into play: if it is ever constructed, it would mean the export of crude oil, fuels and petroleum products to Western Mexico and parts of Latin America.

But there’s a big “if” here – and that’s because MMEX Resources is a shell holding company that had previously been doing business as MMEX Mining Corporation. The company has no assets, no revenue and nearly $3 million in liabilities. In fact, according to an October 2016 SEC filing, MMEX only had $209 cash in the bank. The company is not just a “development stage” company – it’s also a pre-revenue company.

So that raises a huge question: How does a company with just $209 in the bank plan to construct a nearly half-billion-dollar oil refinery?

Find out when $MMEX stock reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

One strategy seems to be simply issuing new shares in the company. The company continues to engage in massively dilutive share creation. Moreover, in a March 2017 shareholder note, the company further disclosed that it authorized additional shares that would represent more than 3x the existing number of shares, so there’s further dilution to come.

And there’s another red flag for investors: the plans for the new West Texas refinery were acquired from Maple Resources Corp, which happens to be owned by Jack W. Hanks, the President and CEO of MMEX.

Of course, the Company is doing its best to drum up support for the refinery. In fact, interviews with Jack W. Hanks have appeared in the Texas business press. And on March 29 – three weeks after announcing plans for the mega-refinery – the company issued another press release about the project. The company has hired KP Engineering from Odessa, Texas to start the engineering and design phase of the Pecos County refinery project. According to MMEX, this phase will begin “immediately.”

In the March 7 press release for refinery project, MMEX was careful to point out that construction of the refinery was “subject to receipt of required government permits and completion of required debt and equity financing.” In other words, the refinery is going to be built only if MMEX manages to secure $450 million in financing.

So, if you’re cynical, you would assume that MMEX is going to continue to string along investors, continually issuing new shares to keep the project afloat and keeping investors excited by issuing new press releases from time to time, detailing the progress of the refinery. The latest press release, for example, detailed how the company will help to create hundreds of jobs in the area and how the company is only planning to use U.S.-sourced materials and equipment.

As an investment, then, this is a very speculative play. Investing in a company with no revenue, no assets and very little cash on the books is always highly risky. However, as a trading play, it’s easy to see why MMEX continues to hold allure. As long as the company can show tangible progress in building that refinery, it’s possible that there will be upward momentum for the company’s shares.

But what happens when the company finally announces that it won’t be able to obtain all the required funding for the project? That will be the real moment of truth. Everything is bigger in Texas, and especially this tall tale about a West Texas Permian Basin refinery. For continuing coverage on shares of $MMEX stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!

 

Latest article

Alibaba Group Holding Limited (OTCMKTS:BABAF) Big Volume with Possible 60% Upside

Alibaba Group Holding Limited (OTCMKTS:  BABAF) is an over the counter stock traded on the OTC Pink markets in the Consumer Discretionary...

Trans Global Group Inc (OTCMKTS:TGGI) Stock In Focus After Operational Updates

The Trans Global Group Inc (OTCMKTS:TGGI) stock may not have been in the news today yet but it...

Why Hycroft Mining (NASDAQ:HYMC) Stock Shot Up 700%

If you are on the hunt for stocks that may have made major gains over the course of the past week, then...

Secure Paymentz releases banking software demo on Github

This is a paid announcement from one of our advertising partners. How to Leverage Your Trading Position by Secure...

Advanced Asset Management Announces New Website Launch

This is a paid announcement from one of our advertising partners. Financial Planner in Grandville, Michigan
Şehirler arası nakliyat ve Şehirler arası taşımacılık konusunda en uygun fiyatlar ve en kaliteli hizmet.
ofis taşıma firmaları ve ofis taşıma konusunda en uygun fiyatlar ve en kaliteli hizmet.
SmsVerifyer.com Affordable best sms verification service