USA Restaurant Funding Inc. (OTCMKTS:USAR) Makes A Run Up
USA Restaurant Funding Inc. (OTCMKTS:USAR) had been quiet for a long while before yesterday, when it managed to add 73.33% to its market value over the span of a single session. But will its ascent last?
We’ll leave the investors to be the final judge of that. What we will do is list a few facts about USAR to help them along.
A look at the company’s newest press release gives the impression that USAR‘s management isn’t sure which direction to take with the company. There’s something odd about a company named “USA Restaurant Funding” dealing in “home alarm and home automation industries together with energy efficiency and utility services”. Confusing thought that may be, investors could probably live with it, and since this is the sixth name of this entity, it’s certainly not that big a deal.
But you know what is?
The fact that USAR‘s latest financial report looked like this:
- Cash – $2 thousand
- Current assets – $17 thousand
- Current liabilities – $114 thousand
- Revenues – $140 thousand
- Net loss – $3 thousand
Those numbers can hardly sustain any growth, and even when the company’s price per share is a fraction of a penny.
The fact that the company’s shares outstanding have jumped from 101 million to over 503 million over the span of one year should also not go unnoticed, and neither should investors ignore the fact that the company is still 250 million shares shy of its authorised share cap.
Do we really need to discuss the circumstances surrounding USAR any further? Let the buyer beware.