A High for These New or Old Small Cap Marijuana Stocks? NGMC, DGRI & ENDO

Next Generation Energy Corp (OTCMKTS: NGMC) and Dutch Gold Resources, Inc (OTCMKTS: DGRI) are the latest small cap stocks to announce their entry into the marijuana business while peer Endocan Corp (OTCMKTS: ENDO) sees some paid promotions or investor relations activities, but otherwise remains quiet. So will investors and traders alike achieve a high with any of these small cap marijuana stocks? Here is a quick reality check:

Next Generation Energy Corp (OTCMKTS: NGMC) Intends to Find a Gusher in Marijuana

Small cap Next Generation Energy Corp is a holding company specializing in oil and natural gas assets but now the company plans to focus on the acquisition of retail and cultivation licenses throughout North America, as well as the development of a national brand. On Friday, Next Generation Energy Corp fell 2.39% to $0.0571 for a market cap of $7.19 million plus NGMC is up 13.5% over the past year and down 88.6% since December 2010 according to Google Finance.

What's the Catch With Next Generation Energy Corp? According to various disclosures, transactions of $2k, $7.5k, $15k and $18.5k have or will occur to mention Next Generation Energy Corp in various investment newsletters. One week ago, Next Generation Energy Corp announced that its Board of Directors had approved a plan to redirect resources and to focus its core business on the fast growing medical marijuana industry with the initial focus to be on the acquisition of retail and cultivation licenses throughout North America, as well as the development of a national brand. The CEO commented that:

"NextGen isn't just another company entering the Medical Marijuana industry, which has proven to be very exciting for investors in recent months. We are undertaking a very sophisticated business plan that has been in development over the last five years. As more states are legalizing marijuana and there is significantly more discussion on the use of marijuana for medical purposes, we are convinced that now is the time to launch our very aggressive platform."

And:

"Our turn-key DMS services will include real estate management, marketing, product training, staffing, sales training, facilities management, security systems to include armed guards, video surveillance, loss prevention systems, and a full suite of cloud based IT solutions to manage all aspects of the supply chain from seed to sale. We recognize the significant growth opportunities in the medical marijuana industry and are aggressively seeking to capitalize on these opportunities as the sector continues to evolve."

A quick look at Next Generation Energy Corp's financials show why a change of direction might be necessary as the company has reported no revenues; net income of $443k (most recent reported quarter), a net loss of $1,725k, net income of $13k and a net loss of $1,595k for the past four reported quarters; and $1k in cash to cover $1,141k in current liabilities at the end of last September.

Dutch Gold Resources, Inc (OTCMKTS: DGRI) Intends to Find Gold in Marijuana

Small cap Dutch Gold Resources intends to provide financial services, including merchant banking, merchant services and business services with a specific focus in the emerging "cannabis industry." On Friday, Dutch Gold Resources fell 10% to $0.0009 for a market cap of $2.24 million plus DGRI is up 350% over the past year and down 99.4% over the past five years according to Google Finance.

What's the Catch With Dutch Gold Resources, Inc? According to various disclosures, no transactions have occurred to mention Dutch Gold Resources in various investment newsletters. Last Thursday, Dutch Gold Resources announced that it had entered the financial and business services industry with a special focus on the medical marijuana sector. Dutch Gold Resources believes there are opportunities in merchant services and transaction facilitation and it intends to build platforms to support retail sales and to build brand loyalty programs. Hence, Dutch Gold Resources intends to identify and connect alternative lenders with potential borrowers by establishing state specific platforms to insure compliance within each state plus the company has identified distinct business services that will be needed as marijuana entrepreneurs launch and grow their businesses. A quick look at Dutch Gold Resources' financials on Google Finance and Yahoo! Finance reveals the most recent ones date from the end of September 2012 – meaning investors don't have much to go on here.

Endocan Corp (OTCMKTS: ENDO) Has Been Quiet Lately

Small cap Endocan Corp is currently developing new natural products based on innovative formulations to utilize the unique and potent benefits of the cannabis and hemp plants. On Friday, Endocan Corp fell 5.58% to $0.0897 for a market cap of $7.79 million plus ENDO is down 20.6% over the past year and up 6,800% over the past five years according to Google Finance.

What's the Catch With Endocan Corp? According to various disclosures, a transaction or transactions of $10k has or will occur to mention Endocan Corp in various investment newsletters. However, Endocan Corp has actually been quiet since early February when the company issued a press release to say that they were "delighted" that the US Congress and President Obama appear on the verge of approving the first key law to legalize hemp cultivation and advanced research on a federal level (Note: On January 29, 2014, the US House of Representatives approved the "farm bill" that contains a provision for certain cultivation of industrial hemp for research in a number of US states). Endocan Corp also issued "shareholder guidance" concerning an multi-year, strategic growth agreement with Medicine Dispensing Systems, a wholly owned subsidiary of Medbox Inc (OTCMKTS: MDBX), that was announced on August 20, 2013. Under that agreement, Endocan Corp will be bringing proprietary cannabinoid-based products and formulations to market in state-approved regulatory environments with dispensaries to be branded by the company while using the advanced, patented 'Medbox' dispensing technology. However, the latest financials for Endocan Corp date from the end of March 2013 – meaning the company has some catching up to do.