Baristas Coffee Company Inc. (OTCMKTS:BCCI) Goes Down on Profit Taking
This week is turning into a disaster for the stock of Baristas Coffee Company Inc. (OTCMKTS:BCCI) with three days of losses out of the three sessions so far. Yesterday the negative momentum got even stronger and BCCI crashed by 16% wiping more than 2 cents of its price and closing at $0.11.
As a whole since Monday the company is down by close to 30%. Despite the corrections BCCI has been able to keep most of the gains it made at the start of March when the stock ran from $0.025 to a high of $0.20 in just 6 sessions.
Unlike most of the other pennystocks BCCI has not been the target of a paid pump for more than a year and although it has been touted by a couple of email alerts in the past weeks they have all been sent for no compensation. The last one came late in the evening on Tuesday sent by HotPennyPicks but had no effect on yesterday’s trading.
The lack of paid promotions is not the only thing setting BCCI apart from the other pennystocks. The company has been posting solid financials, it has real operations and according to the annual report for 2013 was actually able to finish the year with a positive bottom line:
- $43 thousand cash
- $105 thousand total current assets
- $565 thousand total current liabilities
- $1.3 million revenues
- $154 thousand net profit
The dilution of the common stock has also been kept in check with around 50 million shares issued for 2013. Still, BCCI might be forced to increase its 300 million authorized shares because as of December 31 they were sitting at 295 million outstanding shares.
BCCI is also been included in this month’s issue of Forbes Magazine which is going to further increase awareness around the company. Still, a market cap of $30 million might be a bit too high for them to support at the moment and further corrections are not that unlikely. That is why it is always paramount to do your own due diligence prior to any trades involving pennystocks. 