3D Makerjet Inc. (OTCMKTS:MRJT) Crashes Horribly
Just one session of headlong tumbling cost 3D Makerjet Inc. (OTCMKTS:MRJT) almost all the gains that it had made during the month of April – but why?
Well, while due diligence reveals no obvious immediate cause for the crash, there are quite a few factors pulling the ticker down.
For one, the company’s market cap after this latest 20% crash is as high as $247 MILLION – which may be a bit much, considering the fact that we’re talking about a dubious OTC Markets underachiever that isn’t even targeted by a paid pump at the moment.
And if you think calling MRJT an underachiever is harsh, just take one look at the numbers that the company gave in its latest financial report:
- cash – $0.6 thousand
- current assets – $51 thousand
- current liabilities – $835 thousand
- NO quarterly revenue
- quarterly net loss – $507 thousand
After seeing those numbers, more descriptive words seem to spring to mind – words such as “idle” and “mediocre”. And you know what’s even worse?
The fact that as bad as these numbers may be, they are as nothing when compared to the red flags that start cropping up when you start looking into MRJT‘s share structure.
Suffice it to say that as of the beginning of 2015, there were notes outstanding that could allow their holders to convert approximately $775 thousand worth of debt into shares of MRJT common stock at a price of $0.001 per share.
And it is not like this is a fluke, misunderstanding or a one time occurrence. Delving deeper into the company’s reports reveals that that’s just how MRJT has always done things. About five of years back the entity that was to become MRJT issued 1.2 million shares to third parties as payment for services rendered. Fast forward to 2014 when a 26-for-1 forward split was performed, and the holders of those 1.2 million pre-split shares suddenly become the owners of 31.2 million post-split ones.
The list of red flags and possible reasons for the crash that we witnessed yesterday just keeps going on and on. Investors would do well to consider all of these shortcomings before committing to MRJT stock.
