Both the Dow and S&P 500 experienced losses on Friday as a result of oil prices continuing to decline. Prices for crude oil have been moving in line with the stock market for the majority of the year, yet as a result of U.S. crude reserves hitting a record high, crude prices fell roughly 4%. Due to their level of connectivity, this oil price skid is a sign of the stock market to follow in a similar manner. In addition to this news, reported rises in costs of rent and healthcare services could foreshadow the Federal Reserve deciding to steadily raise interest rates throughout the year. Rising interest rates could negatively effect the market’s valuation of publically trading companies, effectively lowering their stock prices. Despite these foreboding circumstances, three micro-cap companies have proven their ability to deliver strong performances in the face of market adversity. Iconic Brands Inc. (OTCMKTS:ICNB), GrowLife Inc. (OTCBB:PHOT), and Grey Fox Petroleum Corp. (OTCMKTS:GFOX) have not only endured these recent negative market conditions, but have produced sizable returns in the current arduous investment atmosphere
Iconic Brands, Inc. (OTCMKTS: ICNB) is in the business of meeting their client’s alcoholic beverage needs with products that are marketed through internationally identifiable celebrities, are both unique and superior to their competition, and are of the utmost quality. In a recent press release from Iconic Brands on February 10th, the firm focused on the astounding success of their product, BiVi Vodka. The company proudly declared that BiVi Vodka was awarded a Gold medal from the Artisan Spirits Awards of San Francisco. The beverage’s awarded score of 91 is indicative of the product’s exceptional distilling process and exquisite choice of ingredients that are representative of the superior expertise of the artisan distiller, Giovanni La Fauci. Rich DeCicco, CEO of Iconic Inc., spoke on Bivi receiving such a prestigious honor, “We are thrilled that BiVi is continuing to build momentum and brand awareness. We are striving to become the vodka of choice when people dine out and when they entertain at home. For any new brand to be successful, we must deliver a quality product that the consumer will enjoy and have readily available. The consumer today is presented with many choices in the vodka category. They know with BiVi and the handcrafted manner in which it is produced, they are purchasing a brand with real authenticity, a fabulous back-story and very important to note — it’s “Original.”
The price of ICNB has been greatly influenced by the positive reception to BiVi Vodka, and it being awarded with an esteemed accolade. Looking at ICNB’s stock prices from nearly a full month prior leading up to the day of the press release of BiVi’s award winning performance, on January 13th ICNB’s closing price was 0.0012, yet on February 10th 2016, the date of the press release, ICNB’s closing price was 0.0019. Thus, over the course of 20 trading days ICNB saw returns of 58.33%. The company’s performance becomes all the more confounding. ICNB is a stock that has the potential to see short-term returns over 50% with historically little fluctuation between daily returns. ICNB has established itself as a company with potential to generate large returns in a rapid manner with minute inconstancy.
GrowLife Inc. (OTCBB: PHOT) satisfies consumer’s horticulture needs through the manufacturing and marketing of products that are first-rate and accentuate the forward-thinking views in line with the lifestyles of their target market. On Thursday, February 18th 2016, GrowLife released an announcement regarding their quotation on the OTC Bulletin Board. Following the Financial Industry Regulatory Authority’s clearance of the firms Form 15c2-11, GrowLife officially declared that their common stock has resumed quotation on the OTCBB. Marco Hegyi, President of GrowLife Inc., released a jubilant statement pertaining to the momentous news, “GrowLife was notified yesterday that FINRA approved a market maker who filed a 15c2-11 in August 2014. We are pleased to clear this important hurdle of restoring trading in GrowLife on the OTCBB. Re-listing on the OTCBB will allow us to enhance liquidity in the stock and attract additional market makers and institutional investors. We plan to expeditiously apply for uplisting on the OTCQB to further these goals.” Mr. Hegyi furthered his comments by thanking all individuals who provided continuous support to GrowLife, “I am grateful to our shareholders, investors and partners who have stood by us during this challenging time. We will continue to work towards increasing shareholder value, and will now get back to strengthening the indoor growing industry.”
The returns associated with GrowLife Inc. (PHOT) in the previous two months leading up to the announcement on their common stock being relisted on OTCBB. On December 18th 2015, the closing price for PHOT was listed at 0.006, while on February 18th 2016, the date of PHOT’s reinstatement onto OTCBB, the closing price was listed at .017. Delivering a return of 183.33% over that time. That number by definition may seem misleading due to the fact that there are 41 unique daily returns during that period. However, when averaging the day-to-day returns of PHOT’s stock, investor’s will find that PHOT’s price grew at an average rate of 5.16% per day during that period. GrowLife’s reinstatement onto OTCBB has proven that the firm is increasing in value at a steady rate with potential for massive returns when expanding the investing horizon.
Grey Fox Petroleum Corp. (OTCMKTS: GFOX) centers their business philosophy on generating revenues for the company and generating increasing shareholder value through the practice of acquiring and maximizing the value of subsidiaries with potential attractive revenue streams. On February 9th 2016, Grey Fox Holdings Corp. revealed that they have officially secured a lease for the firms original franchised location of Graffiti Junktion located in Daytona Beach, FL. Daniel Sobolewski, CEO of Grey Fox Holdings Corp., revealed details regarding the opening of and plans for their new restaurant, “Our anticipated opening is tentatively set for March 1st, 2016. We plan to open just before this year’s 75th Anniversary of the Daytona Beach Bike Week Event, which begins on March 4th, 2016. The Daytona Beach Graffiti Junktion Restaurant will be located in the middle of this huge event. I feel this will bring great exposure to the new location, and its brand.”
The market response to Grey Fox Petroleum Corp.’s (GFOX) franchise announcement has been stunning. There was apparent fear amongst the market in the days between when Grey Fox Holding Corp. executed their lease, and when it was announced, with those three days producing an average return of -0.77%. However, all fear was quickly suppressed once Daniel Sobolewski officially announced the lease, and timetable for their opening. The day following the announcement, GFOX saw a daily return of 26.67%. Furthermore, since the press conference on the 9th GFOX has averaged a daily return of 9.50% with a total return of 21.05%. Taking into account the days preceding the announcement when Grey Fox had executed their lease but had not officially announced it, the returns are equally as impressive, with average daily returns of 6.08%, and a total return of 43.75% during the time period. The market has reacted in a positive manner following Graffiti Junktion’s opening and the potential value it will bring to their holding company. The previous two weeks have established GFOX as a stock that has the ability to produce considerable returns, both on a daily and weekly basis. The Daytona Beach location is the first of three Graffiti Junktion franchises that Grey Fox purchased the license to. Based upon the returns associated with their first announcement.
Oil prices have been steadily declining for nearly a full year, which has had an inverse effect on major stock indexes, and the stock market as a whole. Crude oil prices falling will lead to market losses, due to how closely intertwined the two have been this year. Thus, crude oil falling 4% on Friday February 19th continues the negative trend in oil prices, and in turn the stock market has been declining as well. Furthermore, with costs of rent and healthcare rising, the U.S. has been experiencing an elevated level of underlying inflation. Both the rising of costs and inflation act as a signal of a rise in price-pressure, which could lead to the Federal Reserve cautiously increasing interest rates throughout the rest of the year. Higher interest rates can potentially lead to public companies market value to fall, which lowers the price of their stock. Market conditions have been less than ideal recently, yet three notable micro-cap companies have established their ability to rise above negative trends and provide value to their shareholders. The trio of Iconic Brands Inc. (ICNB), GrowLife Inc. (PHOT), and Grey Fox Petroleum Corp. (GFOX) has overcome the multitude of burdening factors in the current market, and has realized remarkable returns for their investors.