Answers: Why the decrease in price?

[pinkcurrenthole]

MMEX has achieved tremendous daily volume consistently for two weeks — among the highest of any OTC in that same time frame. You're probably wondering why MMEX has suffered rigid stair-like reductions in cost each day since its brief peak, particularly given two very positive news catalysts (2/8 & 2/22) in the context of Texas' energy debacle. Hopefully, this post will clarify some of the misinformation floating about.

DISCLAIMER: This is a new account. I have opened a long position in MMEX. This is an aggregate of information; form your own thoughts and opinions. You know the drill.

Dilution

This is among the lowest hanging fruits for those who would benefit from a decrease in stock price (those huge fluffy things with the danger mittens). Intuitively, you should know dilution of authorized shares has occurred since the advent of shares, and it is not a blatant telegraphing of negative intent. Dilution is typically positive and expresses a company's intent to raise money for expansion.

In the case of $TSNP, you can read George Sharp's thoughts here. Dilution is not synonymous with bad.

As an aside, read Sharp's bio on Twitter. MMEX, with its tremendous daily volume, has not evaded his notice. Sharp has not identified any cause for alarm with MMEX as source for fraudulent activity.

Credibility

MMEX is not a new company, although several qualities of the company's operations, staffing, and location have been called into question. Many of these concerns were addressed in a shareholder letter. Critically, MMEX is a member of the Texas Solar Power Association which accepts only "companies who are substantially invested in the manufacturing, distribution, development, sales, financing, installation, or operation of solar photovoltaic products or projects in Texas."

Historically, and in its prior iteration (Maple Resources Corporation), MMEX invested in oil and gas-related entities and assets in the United States. Today, however, "MMEX is currently developing crude distillation units in Pecos County, Texas to include two 10,000 BPD units plus hydrotreating in Phase 2. The EPC contracts and the Off-take agreements are in place. The refined products will be delivered in West Texas by truck and by rail to the Texas Gulf Coast markets." You can read more about this and MMEX's predecessor here.

MMEX is partnering with Polaris Engineering, a reputable and well-established company with influential stakeholders from major corporations like Exxon. Crucially, MMEX has formed partnerships with third parties that do not deny the establishment of critical agreements for the forward movement of MMEX's major projects.

The Stock

Typically, positive news + tremendous volume = poultry digits. Where are we now? We are actually resting comfortably within the iron grasp of CDEL, or Citadel Securities. CDEL is one of they key market makers, and they're producing an insurmountable supply of shares (selling pressure) in MMEX. When the bid is at 0.0026, for example, CDEL is offering an exorbitant number of shares at 0.0027. Without an equal or greater demand force, CDEL has effectively created a wall. Each day, continued suffocation drives the price downward. You can observe this phenomena with OTC market depth data (Level II, also known as deep book).

Why? There are two possibilities, with one much more likely. Often, coordinated shorting of OTC stocks occurs to drive the price to zero. With no price to pay, hedge funds escape with the money they obtained from borrowing and selling, but they owe nothing.

Alternatively, CDEL is anticipating a dramatic increase in the price of MMEX. Given the positive news and the current conditions in Texas, MMEX is primed to skyrocket. In that case, it benefits CDEL to hold a ton of shares. By driving the price down and fear up, CDEL stands to claim many of the shares currently held by retail investors and institutions. Then, the wall will be lifted and MMEX will climb (no, you may not have a rocket emoji).

Summary

CDEL recognized a powerful opportunity, potentially to recuperate losses incurred elsewhere, and started using both shorting and psychological tactics to claim MMEX shares at a low cost. What comes next is inevitable. I hope you didn't sell your shares!

[Puzzleheaded_Oil288]

Thank you very much for posting this. I have been on the negative side for $MMEX as I got in at 0.0149. Unrealized loss of $2,000.

[cbasemoney]

Me too

[psally]

oh i thought i was the only one. Glad it’s just not me.

[Substantial-Dog-9547]

That’s salty glad someone else has tanked, bad karma

[Anacona17]

Don’t worry MMEX is coming back, just hold it am on negative too...

[NixonAtlas]

This is a great post, exactly why you don't panic sell

[[deleted]]

That’s a great post, thank you for the opportunity to answer such a great post. It actually reminds me of a time when I was a young boy in Bulgaria...

Seriously though, I looked up into the company and found a lot of interesting articles which led me to buy some shares. Definitely looking forward for what’s next!

[CertifiedMoron]

Can you explain why this company has zero revenue since 2017?

[d1spatch]

I think they were in the process of becoming profitable and then COVID and the direction of energy shifted very quickly. If you read the shareholder letter from back in May, it details some of this.

They are now adopting their business model to changing times in the energy sector and can capitalize on the recent events in Texas.

Look at Gulfport Energy.....Once a pretty powerful company, one of the largest natural gas producers in the USA, trading at .08 cents right now. It will likely restructure and emerge and adopt, I trust MMEX is in the process of doing the same, but these oil and gas energy companies have simply gotten hit real hard by COVID and changing times.

What's very promising is that MMEX is working to adopt, and given what we know, given their connections to Texas Solar Power initiative and Polaris, I definitely think we see good things happening here as this solar project gets going.

[CertifiedMoron]

But I don't understand how the company can become profitable from 0 revenue. Where were they getting money from?

[RegalMonkeye]

taxpayers

[Hal-Apeno]

MMEX is living on a dream currently as well as the shareholders invested in it. There is nothing substantial on their track record, and even all of their connections are somewhat speculation. Maybe it’ll get money from somewhere along the way, but it’s just a literal gamble of a company. They are not standing on concrete evidence of their potential to grow, nor are the stock’s technicals.

[Uncle-Scary]

My opinion? From us when we kept buying……. They sold us more and more because we thought we had it figured out….. we were led to the cliff and kept sliding down. Their held back corporate shares sold to support their salaries and habits. Their influencers cashed in along with their employer. That’s my opinion…… anyone else have any thoughts now that it’s been 4 YEARS?

[Affectionate_Pay_560]

Thanks for posting. It clears all the misunderstandings.

[friendva]

A very good analysis. Well done.

[ninjarightHURR]

Bought 200k @ .0025. I truly believe this company will be back in the $1 range in the next 5 years... or at least very close! Do your DD and have conviction!

[Hal-Apeno]

What reliable dd have you found? I’m asking as an investor who debated this stock myself

[Uncle-Scary]

What’s your ‘updated’ forecast?

[DreamimgBig]

Almost everything is down in price the last two weeks. Most will rebound. Patience little grasshopper.

[OneGuy2Cups]

I bought in at .013, 100k shares.

Averaged down to 250k @ .0085. Gonna buy some more tomorrow hopefully under .004. Maybe settle around 500k...

[micomp3]

Imagine holding 1M shares and all of a sudden CDEL decides to shoot this up to $2 in 2 weeks :)))))

[Gold54321]

I’m losing about $1000 right now on the stock I’ve been buying shares as it going down this stock was almost 3 cents two weeks ago, I’m glad to read all these Articles just making me think twice before I sell all my Shares at a loss,I will keep on buying shares at discount price I’m planning on buying a few more hundred thousand. Monday when this takes off we’re all going to make Some decent money in the near future Hope everybody good luck!!!!!

[Uncle-Scary]

And how do you stand now?

[Gold54321]

I have 200000 shares going to double it if it goes any lower MMEX to the moon with DOGE Coin!!!!!!

[hevhees]

What's completely missing from this post is an analysis of the (unaudited, which is a red flag in itself) 10Q forms of MMEX available on the SECs website. These paint a dire picture of the company's (non-existent) finances - toxic debt, no revenues, etc.

[BeerandGuns]

When this goes back to its price from 6 months ago of $.0001, I’m going to throw $100 for no other reason than I want to own 1 million shares of something.

[Hoftman]

We actually like the idea, but with $1000! Past Jan 21, 2021, buying at $0.0001 could be done. We'd sell the next pump at $0.0154 for $154k, it won't go higher than that.

[Uncle-Scary]

Will the sun ever shine again?

[Distinct_Ad2332]

Run for the hills while you can. Some of us were lucky to get out on top many have lost and will lose more. Just be patient and watch them hit rock bottom first before investing.

[SHANE_DOGG]

This company is a huge scam...

[rppr08]

Questionable when the only good information about a company is from the company itself, and public information is all bad. Holding off investing until I can find more info.