A One-Off Surge Keeps Investors Interested in Cereplast Inc (PINK:CERP)
Having recently been delisted from the Nasdaq stock exchange for failing to comply with the corresponding requirements, the shares of Cereplast Inc (PINK:CERP) have been freely traded on the OTC marketplace for almost two months already. While this is by no means a long time frame, CERP quickly fell under promotional fire on Jan. 24-26 and is currently enjoying a pretty volatile trade.
Yesterday, CERP wrapped up trading at $0.0285 per share, up 24% in comparison to its previous close on Friday. Approximately 39.6 million shares changed hands, only a tad less than the volume shifted on the Feb. 1 session. Both figures are, however, unusually high for this stock, which suggests that there might be some corporate developments going on.
According to our promotional database, CERP was last promoted about twelve days ago when Money Runners sent out a couple of emails branding CERP as their next big monster play ready to take the charts by storm. The first mail arrived on Jan. 24 and it produced a negative result as CERP scored a modest loss in the subsequent session. The second round was targeted at the session to be held on Jan. 28. Guess what? It brought about an even bigger loss of some 20%. Surprisingly or not, we never got a third email from these guys.
So, apart from a free newsletter alert on the stock on Feb. 1, CERP does not appear to have morphed into a pump job again, at least for the time being. So, what are the odds for today?
Apparently, CERP has just put out some fresh news for its shareholders which could impact the stock’s performance today. As it is, the manufacturer of proprietary bioplastics has reportedly raked in $300 thousand in revenue for the last two weeks of January alone. At first sight, this figure may sound impressive enough to lure many investors into getting in. However, the latter should not forget the difference between a nominal value and a real one. The former does not account for any expenses. The latter, on the other hand, does. The real dimension of this revenue will be reflected in the company’s Q1 report for 2013, which in turn means mid-April at the earliest.
Judging from the latest financial data on the company, there is still a lot of room for improvement as far as the huge working capital gap of approx. $10 million is concerned. In this respect, CERP might have a long way to go before getting its flows fixed and enjoying a continuous reign on the charts.
