Capital Resource Alliance, Inc. (OTCMKTS:CRRA) Reaches Unstable Prices
Last week the stock of Capital Resource Alliance, Inc. (OTCMKTS:CRRA) burst onto the scene and started climbing up the chart. The positive momentum continued to build up and after the weekend CRRA reached even higher valuations closing Monday’s session 19% up at $0.072. During the trading hours though it soared much higher breaking through 11 cents per share but such price ranges proved to be too much for the stock.
Almost always such chart patterns are caused by a paid pump touting the company or, since the start of the year, a decision to join the marijuana industry. Well, in the case of CRRA it is neither. On May 14 they announced that a letter of intent has been signed for the acquisition of Nate’s Pancakes, a company that produces ready-to-use pancake or waffle batter in a pressurized can. This is the latest invention of Nate Steck who in the past has developed quite a few products each generating million in sales.
The deal will be done through the issuance of preferred shares so for the moment there will be no dilution of the common stock. The deal looks promising but is it enough to sustain the current prices of CRRA‘s shares. The answer is quite simple -there is no way to know. CRRA has not filed a single report in nearly 4 years. The last financial report covers the quarter ending September 30, 2010 and it contains some rather distressing numbers:
- ZERO assets
- $33 thousand total current liabilities
- ZERO revenues
Despite having virtually no operations the company had already managed to reach 61 million outstanding shares out of the 100 million authorized. All of the shares were issued at extremely cheap prices often below $0.0008, and that is prior to the 3-for-1 forward split. Although the information is quite old it is more than likely that the people who bought the shares still possess almost all of their holdings thanks to CRRA seeing absolutely no trading for quite a while.
Another concern is the fact that in the PRs they state the products is already available for purchase while the FAQ site reveals something else entirely. In it CRRA explain that they will start marketing the pancake batter after their shelf life test has reached 45 days, while at the time they had reached 14 days.
With no information about its current state, millions of extremely cheap shares that could flood the market and still a while 
before the launch of their product it is imperative to do your own due diligence before committing to any trades.
before the launch of their product it is imperative to do your own due diligence before committing to any trades. Yesterday the stock of Fortitude Group, Inc (OTCMKTS:FRTD) managed to reverse its downwards trend after announcing a buyout letter of intent on Sunday. As a result the stock exploded and soared by more than 200% in a single session returning to $0.282. In early trading today though both stocks are crashing down. CRRA is nearly 20% in the red sitting at $0.06 while FRTD is down by 11% at $0.025.
