Cereplast, Inc. (OTCMKTS:CERP) Drops After Announcing Q3 Financials
Cereplast, Inc. (OTCMKTS:CERP) has been gradually descending the charts since the massive promotional campaign in the beginning of August. The ticker made its biggest percentile movement in a while in Friday’s session, but it wasn’t in a good direction.
This was expected, because the company filed its latest financial report in Thursday and it wasn’t a pretty sight, despite the fact that CERP is generating revenue. You can see the numbers of prime interest from the Q3 report listed below and be the judge for yourself.
- cash: $233 thousand
- current assets: $6.49 million
- total assets: $14 million
- current liabilities: $29 million
- total liabilities: $36 million
- revenues: $438 thousand
- net loss: $7.2 million
As you can see the company has a lot of assets, but the amount of money they have on hand is rather disturbing. The liabilities of CERP are simply enormous and the net loss for the period has changed little from Q2 of this year.
What is even more disturbing is the fact that CERP registered 41% less revenues than the ones from the second quarter of the year, which can’t be a good sign at all.
The company CEO, Frederic Sheer, tried to cussion the blow with a conference call on Thursday, but the transcript shows that he was mainly discussing facts about the industry, rather than focusing on CERP‘s development and the path the company has to take to operate at a profit.
All in all, CERP remains a risky investment choice for now and we must, as always, advise you to do your own due diligence and weigh out the risks.
New Energy Technologies, Inc. (OTCMKTS:NENE) also had a pretty bad close of the week as the ticker slid 29% down. Pan Global Corp. (OTCMKTS:PGLO) on the other hand, continued its ascent in the charts, registering a 29.55% gain.
