ProGreen Properties Inc (OTCMKTS:PGUS) Needs More Catalysts

A decline in short selling pressure is one of the reasons why ProGreen Properties Inc (OTCMKTS:PGUS) is bottoming out after a long period of consolidation at all-time lows. The stock has bounced back on high turnover in traded shares. The recent price gains follow the announcement that the company has inked a joint venture alliance contract with Exit Corp International.

PGUS Share Price Analysis

While the stock has bottomed out, it faces a big challenge to continue powering high. The lack of sufficient catalysts could deal the emerging uptrend a big blow given the underlying long-term downtrend. ProGreen is still languishing near all-time lows, an underperformance attributed to soaring short selling pressure. PGUS Daily ChartGiven that the stock is still trading below the $0.01 mark, it faces an uphill task to turn bullish given the lack of substantial updates from the management. For the stock to be considered a breakout play, it first needs to rally and stabilize above the $0.01 mark. Below the critical resistance level, it remains vulnerable to further drops given the underlying bearish trend line.

About ProGreen

Headquartered in San Diego California, ProGreen together with its subsidiaries is an agricultural and residential real estate-focused company. The company pursues growth opportunities around agricultural and real estate projects in Baja California and Mexico.

Exit Corp Joint Venture

Shares of ProGreen have picked steam in recent trading sessions on the company executing a joint venture alliance with real estate giant EXIT Corp International’s EXIT Southeast. Under the terms of the agreement, Exit Southeast is to coordinate US operations and initiate strategic sales/marketing Cielo Mar Baja California.Located in the Pacific Coast of Baja California, Cielo Mar is a very green 5,000-acre resort style vacation and retirement community

Stacy Strobl states: "As Regional Owners for EXIT southeast, we are so excited to be supporting this unique venture in marketing this to our vast EXIT network. This is an exciting opportunity due to the beautiful geographical area and the smart developers creating this distinctive resort."

According to ProGreen CEO, Jan Telander, the deal is nothing than an enormous leap in the company’s projects. The fact that the company has joined forces with one of the fastest growing and major realtor groups in North America is a big boost to the company’s real estate business.However, the company continues to pay a hefty price on failing to reiterate or provide updates on its agricultural operations. The last update on this segment came mid last year when the company confirmed it was in the process of delivering red chili peppers from one of its farms on Baja California.

"The first truckload of just over 20 tons was delivered on August 9and we're on pace for five truckloads or more, valued at roughly $10,000 (USD) per truck, to be delivered weekly and continuing through the fall,” said Jan Telander, Chairman, and CEO of ProGreen."

Last year the company grew chili peppers in a 100 acres farm on the Rancho Arenoso farm. The company did confirm plans to diversify the farm to include other green produce for U.S buyers. Diversification follows the acquisition of a new 2,500-acre tract of land in Baja California.The land provides an opportunity to expand for large-scale production with over 1,000 acres expected to be farmable. The management expects the land to support sustainable living within Cielo Mar and the local region through farm and ranch operations.

“There is more here," Jan added. "Land that is not farmed will be perfect in this location, with such a beautiful landscape, to support eco-friendly tourism, country living, and outdoor activities with cabins, ranches, a rental/tour/travel office,” Telander in a statement.

Bottom Line

ProGreen faces an uphill task even on bottoming out from all-time lows. The underlying long-term bear trend means short sellers are still in firm control even on the stock bouncing back. For the stock to continue climbing the ladder, then the management will have to serve new groundbreaking catalysts.The EXIT Corp joint venture is already priced in the stock price and may not support further movements in the market. As it stands, ProGreen is still in a precarious position even on bottoming out. For investors, it might be wise to wait for further confirmation before opening new positions in the stock.We will be updating our subscribers as soon as we know more. For the latest updates on PGUS, sign up below!Disclosure: We have no position in PGUS and have not been compensated for this article.** Correction:In regards to your story, “ProGreen Properties Inc Needs More Catalysts,” we respectfully request an immediate clarification and retraction of erroneous information.At no time did we authorize the use for EXIT Realty Corp. International as evidence by the official statement of EXIT Southeast.We respectfully request you please immediately revise your online story to indicate the relationship described within the official statement via our website below and remove EXIT Realty Corp. International. This business relationship is between EXIT Southeast, the regional entity for Tennessee, Kentucky and Florida, and ProGreen Properties, and, at no time, should it reflect EXIT Realty Corp. International.Please confirm receipt and we thank you.Website link - https://exitsoutheast.com/gated-green-pacific-ocean-resort-community-cielo-mar-new-exit-southeast-sales-opportunity/Sincerely,Kenny LynnStacy StroblRegional OwnersEXIT Southeast