MMEX Resources (OTCMKTS: MMEX) is one of the seemingly new companies on the stock market garnering investor interest today. The stock is up over 40% this morning to be one of the top gaining stocks on the US OTC exchange. The company has a market cap of $99 million and a trading float of 27 million shares. It has already done over 900 million shares of volume so its float is turning over in a flurry of activity. What is going on?
First you need to look at the chart.
Even though the stock is up a lot today on a percentage basis, it is still trading in a range and has been in a range since it first started to actively trade earlier this month. There has been a flurry of hot stock issues in the market and plays such as SPAC’s that have driven people to look for the next new thing to speculate in. So, that is helping to encourage some to buy shares of MMEX. Secondly, is the fact that this company is involved in the energy sector, which has gotten a bid in recent weeks and even more attention this week with the energy shortages in Texas.
The reality is this company and stock have been around for years. It just became dormant three years ago, as the energy stock sector continued its previous bear market trend, and is now coming alive again. In the past five years this company has generated zero revenue and roughly one million dollars in losses per year on expenses.
On February 8, 2021, it issued a press release stating its intention to get involved in solar energy, which is a “green” sector that has attracted speculative buying. Jack W. Hanks, President and CEO of MMEX Resources Corp., said,“We are announcing today a modified business plan moving MMEX to clean energy use and production. The company plans to contribute to the clean energy solution by providing solar power to producehydrogenwith carbon capture,and for the transition to the hydrogen economy by producing hydrogen along with ultra-lowsulfur transportation fuels in the interim.”
“We are planning multiple solar generation projects in our West Texas environsserving multiple locations in Texas,” continued Hanks “As previously announced,we formed MMEX Solar Resources, LLCin 2018to develop a solar power project to supplypotentiallysolar power renewable energy to our planned refinery projects.We are now modifying our planned refinery projects to produce potentially hydrogen, ultra-lowsulfurfuel products combined with CO2 capture.In addition, we have enteredpreliminary discussions to leaseor purchaseadditional acreageallowing usto developadditional megawattsof solar powerfor distribution in Texas.Preliminary discussionsare underwayalsoto acquire potentially additional hydrogen projects plant site locations in East Texas, Houston ship channel area and the Corpus Christi-Rockport area. If successful,these multiple solar andprocessing projects would greatly enhance the MMEX footprint as a first mover in an integrated clean energy space.”
The stock action and news is generating interest on Twitter.
Although I am bullish on the energy sector and have recently bought many energy stocks, I have not bought MMEX Resources (OTCMKTS: MMEX) and have no plans to buy it. I’m more interested in investing in large cap energy stocks that pay dividends than small ones like this that are more speculative. We are seeing commodity related stocks simply come alive across the board, with even big gains in shipping stocks recently. There are many things I have my eyes on and today brought a good entry point in one major world currency against the US dollar. I put out a pre-market stock trading email alert before the open everyday. To subscribe to it for free simply click here.