There are now over 300 cannabis-related stocks in the universe that 420 Investor tracks. Most of these companies are not anything more than opportunists, though there are several real companies. Pazoo (PZOO) is a penny stock that jumped in to the frenzy at the top, announcing in early 2014 that it was extending from the human and animal health and wellness business into the burgeoning cannabis testing lab business. Ordinarily, this type of business move should be viewed cynically, but in the case of PZOO, it inked a deal with an entity, MA Associates, with a license with highly respected Steep Hill Labs to open a testing lab in Las Vegas using its name and operating procedures. PZOO now owns 100% of MA Associates, which won a license from the state in November.
When I launched coverage of PZOO on June 1st, including it in my Focus List, I suggested that it is among the most promotional stocks in the space. StockPromoters.com indicates that the company has had 560 promotions since going public three years ago, but, to be fair, some of these are traditional I.R. activities. Many, though, are of a more vile nature, like a third-party entity, OT Group, LLC, spending $175K over July 9-10, a time during which the company also engaged Small Cap Voice and Bull In Advantage to help spread the word while it released three separate press releases within 24 hours as the CEO conducted interviews with Money TV and Green Baron as well.
As I have mentioned, Pazoo faces a serious cash crunch. The company has invested in the buildout of its Nevada lab, but it still isn't open. In fact, according to the CEO as conveyed in the recent conference call, the company still doesn't have a certificate ...
