Arrayit Corp (OTCMKTS:ARYC) Slides Down
At the end of last week the stock of Arrayit Corp (OTCMKTS:ARYC) logged in another painful correction sliding down the chart by more than 11% and closing at $0.004 per share. The drop took place on an above-average volume of 64 million trade shares. During the trading day the ticker fell to an intraday low of $0.0033 but managed to claw its way to a higher closing price. For now the company is holding on to most of the gains in made in mid-June but for how long?
Without a new PR announcement, the last one is now exactly two months old, ARYC have been using the social media platform to keep investors excited. And while some of the posts have indeed been encouraging – the online store of the company surpassed $50 million in all-time sales followed by the post that ARYC registered $52 thousand sales in a single day on June 30. Other posts however left us a bit puzzled.
Yesterday the official twitter account of the company acknowledged the $0.60 price target that was given by Sierra World Equity Review. If you are not familiar with Sierra you might not get our bewilderment so let’s see how credible they really are. A few years ago the blog was supposedly run by a single, smoking hot, athletic model called Sierra. Although the blog has changed since then its disclaimer still states that all information posted on the website should be presumed to be inaccurate and unreliable”.
In order to illustrate that point let’s just say that according to Sierra Johnson & Johnson were going to acquire Advanced Medical Isotope Corp (OTCMKTS:ADMD) while this April they proclaimed that Pfizer will make an offer for the acquisition of Propanc Health Group Corp (OTCMKTS:PPCH). We shouldn’t have to tell you that none of there predictions turned out to be true.
With depressing financials – ARYC finished the first quarter of the year with less than $60 thousand in cash, massive working capital deficit of over $7 million and a net loss of $1.4 million, and multiple convertible notes that could be turned into common shares at a significant discount to the market price ARYC should be approached with caution. Keep in mind that quite a lot of shares may have been printed recently. As of May 29 ARYC reported 64 million outstanding shares but that may no longer be the case if the June 18 session when more than 232 million shares changed hands is any indication.
