Nanalyze

6 Cannabis Penny Stocks You Probably Shouldn’t Buy

Last week we wrote an article about a cannabis penny stock we came across that actually had some signs of legitimacy. Would we invest in it? Absolutely not, but people who are dying to invest in cannabis penny stocks because they “think they’re cheap” can. Most retail investors make the mistake of thinking that a stock is cheap based on the literal share price which is probably one of the worst mistakes you can make when you start off investing. The world of penny stocks is becoming so rife with scams these days that we tell our readers with complete conviction that they should absolutely avoid every single over-the-counter (OTC) stock there is and stick to investing in stocks that trade on respectable stock exchanges. That’s what professional investors do. You would never catch a respectable institutional investor ever touching penny stocks. Even FINRA warned investors about this a long time ago:

Even with all the land mines out there, we have countless people that ask us day in and day out “which marijuana stocks to invest in” which we’ve now covered thoroughly. Stick with the new marijuana ETF that came out, or any of the big Canadian growers, or any of the medical marijuana stocks being traded on big exchanges. Consider all the rest to be questionable. Want some examples? Here you go.

Amfil Technologies (OTCMKTS:AMFE)

This $37 million company is involved in 3 different areas of business:

  • Gold exploration in Guyana
  • Landscaping and snow removal
  • Systems and service provider to medical marijuana industry

You can’t make this isht up. That was according to their last filing with the SEC which was back in 2015. They no longer file audited financial statements with the SEC but instead file unaudited statements on the OTC exchange (red flag). Any time you see a collection of disparate businesses like we see above, that’s also a huge red flag. With $65,000 in cash on hand and $4.7 million in accounts payable, those 445 million shares they have outstanding (red flag) are probably going to increase a whole lot.

Cannabis Science (OTCMKTS:CBIS

Anyone remember this $123 million stock? We first wrote about this company back in January of this year and reported them to the SEC. Incredibly, they’re still trading and the SEC has done absolutely nothing. Those people who didn’t heed our warning would have now lost -51% of their investment over the past 6 months.

Be prepared to lose the rest of that investment if you choose to support what appears to be a criminal enterprise based on the history of the people who run this operation.

Cannasys Inc (OTCMKTS:MJTK)

This $1.58 million company that has over 1.1 billion shares outstanding and they’re looking to sell even more. Incredibly, they’re selling their stock to a firm called Kodiak Capital at a 30% discount to what they’re trading at and then readily admit that Kodiak will sell the shares to any of you muppets out there who think it’s a good idea to buy them so they can net the difference in profit. Look:

We will sell common stock to Kodiak Capital pursuant to the Purchase Agreement at a 30% discount to the lowest closing price of the common stock for the five consecutive trading days immediately preceding our delivery of a put notice to Kodiak Capital to purchase the shares. Kodiak Capital has a financial incentive to sell our common stock immediately upon receiving the shares to realize the profit equal to the difference between the discounted price and the market price. If Kodiak Capital sells the shares, the price of our common stock could decrease. If our stock price decreases, Kodiak Capital may have a further incentive to sell the shares of our common stock that it holds. These sales may have a further impact on our stock price.

The audacity demonstrated here by a publicly traded company is truly mind boggling. Here’s the entire filing if you want to learn more about all the individuals involved in this venture.

Grow Condos (OTCMKTS:GRWC)

The idea was to build “grow condos” that provide people with turn-key grow facilities that they can use to grow weed in. What actually happened was this two employee company purchased Lake Selmac Resort in Oregon for $875,000.

They’re looking to purchase additional properties with the $79,042 in cash they have on hand. That’s about all there is to say right now. Read the latest filing yourself and see if you think this operation is valued at the current market cap of $17.75 million.

United Cannabis Corp (OTCMKTS:CNAB)

This company used to be known as “MySkin Inc”, a name under which they provided advanced skincare services. That didn’t work out so well, since in May of 2014 they decided to sell their entire skin care business for $15,000 and move into cannabis related ventures. A group of guys licensed to them a bunch of “knowledge, know-how, methods, and processes” and since then they’ve continued to lose money. This $43 million Company’s latest filing is a complete mess of financial arrangements in which the company tries to do everything they can to stay afloat. Their long term plan is to perform clinical trials on their most promising products which they intend to perform in Jamaica. Just give their latest filing a good read through and see if this is the sort of company you think would make for a good investment. Never go to the websites for any of these companies to do research. Go right to their filings where they are forced to be honest about what sort of progress they are actually making.

Cannabix (CNSX:BLO)

Remember our article last week on Hound Labs? Well, just yesterday we received this comment from a certain Bryan Johnson:

1st breathalyzer to measure THC in parts per trillion? Clearly you haven’t heard of Cannabix Technologies out of Canada? Do your research before posting an article.

Why yes Bryan, we have in fact heard of Cannabix. Because of you’re comment, everybody is going to know about Cannabix now. Of course people may have heard of them already, because Cannabix is a $40 million company that spends about 35% of what they spend on R&D for “advertising and promotion”. Formerly known as “West Point Resources”, they suddenly decided to change their business focus in 2014 from mineral exploration to working on a marijuana breathalyzer (red flag). Here are some facts pertaining to that:

  • SEDAR Filing – Nearly $500,000 CAD in stock and warrants were given to the President of the Company for a patent application that they intend to license if granted
  • Website – Cannabix has an exclusive worldwide license of University of Florida US Patent 8,237,118 in the area of breath analysis of controlled substances.

We’re not sure which of these “technologies” they’re using, but they’ve been “moving quickly” on prototype development for three years now:

We’ll leave you with this statement the company made in their last financial report filing:

There can be no assurance that the Company will be able to produce a product that is technically and commercially feasible.

And in the meantime, Hound Labs, which is backed by notable venture capitalists, is testing their device with multiple law enforcement agencies at the roadside.

It’s important to note that there are probably over 100 OTC cannabis stocks now, each trying to take advantage of the public’s interest in “investing in cannabis stocks”. These are just a few names we found in our email inbox from any number of promoters pushing these names. We would put stock promoters in the same category as we would car salesman, divorce attorneys, serial killers, and HR. Any encounter you have with these types of individuals generally results in a bad experience. All of the information we’ve taken above is solely from the SEC, OTC, or SEDAR filings so it is all factual (unless the companies that filed this information lied which constitutes fraud).

Lastly, our track record in outing OTC scams speaks for itself. We’d like to just preempt the feedback we’ll likely get from this article by saying:

  • No, we’re not short any of this garbage (or long).
  • That’s not a very nice thing to say.
  • Your threats of physical violence fall on deaf ears. Some of our MBAs lift bro.
  • No, facts are not libel, and no, your threat to sue us won’t make us take this article down.

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  • Willie

    Thanks for the article. I almost bought some CBIS stock a month ago but I hesitated. Good thing I stopped myself from buying it, I did buy stock in Vitality Biopharma, (VBIO ). They seems legit but I’m going to find out more about them.

    • Nanalyze

      Hi Willie,

      Stay away from OTC garbage. Saying that you will find out more about them after you bought shares is irresponsible. You always do your research before you buy. It took us two minutes to see that VBIO is another mining company turned biopharma that’s burning through cash. There is absolutely no reason to be puttering around with OTC companies when there are so many legitimate opportunities to invest.

  • AMFE will be current with all there financials with in the next 30-days and will uplisted soon after! This is a perfect example of a lazy journalist that dose not due there most to find out the latest (DD) and most resent information on a company just to cut some corners to hand in a stupid opinion on old news to get something published so they don’t get fired! There is no other OTC stock better than AMFL that I’ve ever seen before in my life time! By the way I’m 55 years old and been trading for over 20-years…. This is a once in a life time , ground floor , opportunity to invest in something that will be multiple hugeness in the coming months!

    • Nanalyze

      With all due respect Jeff, learn how to write using proper English if you expect people to take you seriously.

      It’s only fair that we do our good deed for the day and help you out:

      – Change dose to does
      – Change due to do
      – Change there to their
      – Change resent to recent
      – Change AMFL to AMFE
      – Change “been trading” to “have been trading”
      – Change “life time” to “lifetime”

      Lastly, we’ve never heard of “multiple hugeness” but we’re pretty sure that means that anyone who invests in this POS is going to end up with a multiple hugeness of nothing.

      Now that the housekeeping is out of the way, what facts presented in this article did you disagree with exactly?

  • Jason K

    Your lack of knowledge in AMFE is absolutely ridiculous and extremely laughable. I suggest you don’t quit your day job because this is horrendous DD on your part. Amfil Technologies is not an MJ play and has significant revenues not even related to those operations (gold exploration is not even a part of the company any more) that you lazily posted above. Stop attacking someone for their grammar when you clearly can’t even spend two minutes to research a company your about to write about.

    • Jason K

      You’re* excuse me

      • Nanalyze

        Don’t worry Jason! Don’t want to make everyone paranoid that the grammar police are out to get them. We just had a go at Jeff because we didn’t think it was humanly possible to make so many grammatical errors in a single comment.

        Go to http://www.amfiltech.com/ and scroll down a bit:

        The GROzone systems are a triple function sanitization unit capable of naturally eliminating 99.9% of gaseous and aqueous pathogens developed for the Medical Marijuana Industry.

        Then read this drivel:
        http://www.aimhighprofits.com/amfil-technologies-amfe-gets-high-on-marijuana-2014-4

        That’s what we’re referring to.

        As we’ve said countless times until we’re blue in the face, do not invest in any of this over-the-counter garbage.

        • Walter

          Are you really referring to a 2014 article? That shows your extent of knowledge on this company. Try doing some research on Snakes and Lattes then write something meaningful.

          • Nanalyze

            Did you read the title of the article Walter? The title is “6 Cannabis Penny Stocks You Probably Shouldn’t Buy”.

        • Jason K

          Snakes and Lattes is Amfil Technologies brother, please do some research relevant to 2017 and what AMFE is now

          • Nanalyze

            Nobody really cares about OTC garbage Jason, except the handful of people complaining about this article who don’t seem to be refuting any of the facts presented.

  • Daniel F Jackson

    Why don’t you go google Snakes and Lattes, see how much money they are raking in and check out their exclusive distribution deals. Amfil is a real company, the OS was recently cut in half and we are waiting for another 20 million shares to be retired.

    That said, Roger just mentioned a buy back authorizes on twitter and our third PHYSICAL location is opening up this month. Why not check out this two minute video showing our current two locations and the third which is currently being renovated. Thanks, maybe you can take us off this “marijuana list” because we are not a marijuana company. Grozone can be used for any agricultural application and is also used in the food and beverage industry already. Do some more DD.

    https://vimeo.com/222976286

    • Nanalyze

      Again, please read the title of the article – 6 Cannabis Penny Stocks You Probably Shouldn’t Buy. If you want to invest in online board game stores with a company that doesn’t file with the SEC, that has nearly half a BILLION shares outstanding, and that’s gone from mining gold in Guyana to plowing people’s driveways, then go right ahead.

      If you say it’s not doing anything related to medical marijuana, you may want to inquire why this statement is on their homepage:

      The GROzone systems are a triple function sanitization unit capable of naturally eliminating 99.9% of gaseous and aqueous pathogens developed for the Medical Marijuana Industry.

      • Daniel F Jackson

        Yea, I read the title of the article. So, first of all, the share count was recently reduced by 50% and an additional 20 million will be gone soon. This so called “marijuana stock” OWNS that board game company and are very profitable, that said it is very well known that their fiscal year ended june 30th and that they will be current within the next month or so.

        Grozone is just ONE wholly owned subsidiary of Amfil. Maybe you should go to their parent companies website and take the description of the entire company rather than one of the subs.

        “Amfil is focused on growing shareholder value by allowing investors access to self-sustaining small to medium sized businesses with proven profitable strategies, and identified as having substantial potential for future growth. Amfil seeks to achieve long-term financial returns consisting of regular dividend income, benefiting from preferential tax treatment, and expecting modest mid-to-long term capital growth. Amfil Technologies primarily invests in small to mid-sized companies with above average service capacity, growth potential or existing market share.”

        We have a new CEO as of a few years ago.

        • Nanalyze

          “We have a new CEO as of a few years ago.”

          So you represent the company then Daniel?

  • John R Fox

    I started to look at what you wrote, but after looking at the first one, I had my own “red flags” You mention Amfil (AMFE) Say they have a gold exploration business in Guyana. Actually,. they do not. You also did NOT mention that they have a game sports bar business in Canada. That is their biggest of the three businesses they run. I think the reason is because you were looking at 2015 reports, not wanting to see the un-audited reports from 2017. Reality is still reality, even if not filed with the SEC. They no longer own anything to do with gold exploration, and they are expanding their “Snakes and Latte’s” concept now significantly. Oh, and the landscape business you mentioned? That is being spun off in a stock dividend. Already announced a few weeks ago, but no date given yet for when it shall happen They are focusing on the sports bar business and also s”some’ on the MJ business. So your analysis of the company was basically totally wrong. I didn’t read about the rest of the companies in your article after finding the first one to be so outdated as to make the article worthless to me. I did however see that onthe second stock you showed the chart, and how it has gone down. But AMFE’s chart shows it has gone UP recently. A LOT. SO you didn’t include that chart.

    Guy, I love reading analysis on stocks. See what people are thinking, and why. But the research done on this article, at least on the first stock, is so poor that you really need to either rewrite the article or pull it. Your information is absolutely wrong, and the conclusion you drew based on the two year old information is also therefore incorrect. Do your research or don’t write the article. Is AMFE worth owning? Actually … after researching them and seeing what they TRULY are, I think they are a GOOD company. Hey, earnings came out for 1st quarter 2017 and revenue was up 26,600%!! So what you saw before is not only NOT the truth, it led me to verify your research and I think I found one I DO like. Ironic, isn’t it? LOL

    • Nanalyze

      Let’s look at the below statement that’s found on their website John:

      The GROzone systems are a triple function sanitization unit capable of naturally eliminating 99.9% of gaseous and aqueous pathogens developed for the Medical Marijuana Industry.

      Everyone has been warned about these 6 penny stocks that investors should avoid like the plague and the fact that the roaches are coming out of the woodwork left and right show just how accurate we are in calling these out.

      Looks like we may need to do another article like this one soon:

      https://www.nanalyze.com/2015/07/how-to-lose-money-investing-in-stocks/

      • Daniel F Jackson

        The roaches, lol. We are all investors from Ihub and a large amount of shares are in the hands of longs. Why not post a chart of Amfil, any chart at all? Also, why not check out the fact that the company is profitable and owns physical and verifiable retail locations? You are basing the company off a gold mining operation which has been defunct and we no longer have any affiliation to.

        • Nanalyze

          You can go back to Investors Hub then Daniel, a forum that is notorious for pushing pump and dump scams.

  • Daniel F Jackson

    719 shares and you have no concern about the false info you are putting out there. I will contact your editor, hopefully you have one, this is not good journalism.

    • Nanalyze

      Don’t worry Daniel, that’s going to go well over 3,000 shares by the end of the week and everyone will have been warned to stay far, far away from this penny stock garbage.

      What facts presented in the article do you disagree with?

      • Daniel F Jackson

        Nothing like new 52 wk highs.

        • Nanalyze

          Please refrain from cheerleading penny stock garbage on this site. There’s a place you can do that called InvestorsHub.

  • Daniel F Jackson

    It’s fine, I look forward to your retraction when audited financials come out.

    • Nanalyze

      Nobody cares Daniel. Everyone has been warned now. Our job is done. We’re moving on to cover actual investing opportunities in technology.

  • Jason K.
    • Nanalyze

      And folks, we have our first mention of “libel’. Did you read what we said at the end of the article Jason? Maybe you should do that. After you’re done, let us know what facts in the article you disagree with?

      • Daniel F Jackson

        I see you guys got rid of the comment box so. Did you see that AMFE crossed .13 today? I think we were at .08 when you wrote this trash. Good thing you don’t have many readers, they might have seen your terrible calls.

        • Nanalyze

          The comment box hasn’t gone anywhere Daniel.

          We have no interest in watching the price movement of any over the counter stock and neither do our readers. We’re investors, not speculators.

          Unfortunately when you type “AMFE garbage” into Google, this article comes up. You are better off peddling this “garbage” over at Investors Hub.

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