ALJ Regional Holdings, Inc. (OTCMKTS:ALJJ) Led by Optimistic News
The stock of ALJ Regional Holdings, Inc. (OTCMKTS:ALJJ) was barely moving in price and recorded many session without a single share of traded stock. Recently, however, this has changed and the ticker exploded last Friday.
The initial upward run which we covered in one of our previous articles about ALJJ wasn’t halted by the big attention that the company received volume-wise. The ticker held a very decent price even before it started going up, but might the fast climb above the $1 mark call for a serious correction.
We also saw an article on Seeking Alpha yesterday, from a person with a long-term investment in ALJJ, touting the stock. It worked out fine and the ticker closed the session with a 19.30% increase in price at $1.36. The total amount of stock that switched hands came at 312 thousand and helped generate a dollar volume of $386.
Another thing that we consider a plus for ALJJ is the financial statement that they filed, covering the period ednded June 30, which showed very decent cash reserves and small liabilities.
- cash: $7.6 million
- total current assets: $28 million ($20 million of which in short term investments)
- total current liabilities: $298 thousand
- total liabilities: $298 thousand
- revenue: $0
- net income: $132 thousand
The net income is from “interest and dividend income” because before the acquisition of Faneuil, Inc. the company had no other source of profit, as we mentioned in our previous article about ALJJ. Still, however, we are left wondering about the revenue generating capabilities of Faneuil, Inc. because an income statement containing the consolidated balance sheet hasn’t been filed yet.
Today the stock didn’t start that well after it gapped up from yesterday’s close and started falling, but is currently recovering. A serious correction might come, depending on future news and the income statement for the acquired enterprise. This is why we would advise you to do a lot of due diligence and weigh out the risks, because ALJJ isn’t one of the cheepest stocks in the OTC Markets with its price above $1.
Yesterday’s session wasn’t so rosy for the stock of Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) who dropped 9.93% in price. On the other hand Vuzix Corp. (OTCBB:VUZI)’s session went better with a 26% increase in value and a decent dollar volume.
