MMEX Resources Corp (MMEX)

[jmjjw]

Share-selling schemes like MMEX all rely upon trading on the basis of something that doesn’t exist. Shell companies like MMEX typically have no product, no manufacturing or production capability, and trade on the promise of “futures,” like MMEX’s Phase I rudimentary topping unit (with a price tag of just $50-million, not including start-up costs, or operating losses). Like MMEX, there is typically a bigger “win” in the more distant future, as with MMEX’s ever-growing 50,000 bpd, now 100,000 bpd refinery - the goal keeps moving, which is used as a carrot and delay tactic.

The typical build-up for a share-selling scheme like MMEX is a small set of “milestones” which amount to nothing material, and a lot of internally generated company PR, much of it irrelevant, or relying on other company’s accomplishments. So far, none of MMEX’s milestones have been material, other than securing toxic financing.

MMEX, like most share-selling schemes will move the goal post - instead of a 50,000 bpd Phase II, its now a 100,000 bpd Phase II, for only 1/3 more capital. And that has delays, which is another word for excuses, in obtaining project financing, which in the end is one of the few things that matters.

Then MMEX will become a victim, and martyr - of all forces, the market, the complexity of regulations, of entering the sector, of naysayers, and so on. MMEX will offer excuse after excuse, and justification for one toxic note after another, piling on the “debt,” which it needs to convert from thin air into cash, to funnel into one of Jack’s shells, like Maple.

For those lucky enough to exit before the first reverse split, that would be a “win.” For those who “believe in Jack,” the long, true-believer, it will be a very, very rough ride. The death spiral has already started - you can see it even in simple charting in the MA and ADL - especially the last 90-day and 1-month period. There is no accumulation, only money flowing out, into the hands of insiders. MMEX’s death spiral is clearly in progress.