Chancery Resources Inc (PINK:CCRY) Get an A+ from PennyStockProfessor
Chancery Resources Inc (PINK:CCRY) has been one of the most heavily promoted companies recently, and it must be really frustrating to be a part of their management team. History shows that paid pumps can’t go unnoticed and in most cases, the price after the hype is over goes down dramatically. Most likely, the third parties that pay for these pumps are not too happy as well, since we have not seen the huge changes in the way the stock normally behaves under promotion. In any case, the pumps continue.
But let’s see if there actually is something behind all those emails. CCRY recently completed an acquisition which totally changed both the management of the company and the business sector. While they were a mining company before, now they are dealing with ozone generators that are supposed to find a variety of applications in our everyday life – anything from cleaning baby clothes, to making the old banger of a car shiny and new again to making the air we breathe a bit more healthy. Now that’s quite a leap, but then again, the management changed as well, so the only thing that we can do is hope that they know what they’re doing.
They better. The current financial situation that CCRY is now in is anything but confidence-inspiring. The good news is that they have some products and, although they are not too talkative as to where we can find them, they have generated a respectable amount of sales according to their latest yearly report. The bad news is that they can’t turn a profit. Looking at the statement we feel that they will also need a huge cash injection very soon. Here are the figures:
- current assets: $119 thousand
- current liabilities: $150 thousand
- sales: $181 thousand
- net loss: $8 thousand
That’s not the only issue, either. The fact that they are constantly being the target of paid promoters is bound to reflect on the price of their shares and on the credibility with potential investors. Current shareholders won’t be too happy, either. That won’t be the first disappointment they face, though. The agreement for the acquisition stated that they CCRY needs to issue a total of 150 million new shares of common stock, which diluted shareholders’ investments immensely. Since there are so many paid newletters flying around, we can’t help but think that there might be someone who has some shares to get rid off, who’s waiting for a price jump – something that has not happened so far.
The risk indeed is enormous when speaking about promoted penny stocks. To illustrate what we mean, a company called Oryon Technologies Inc (PINK:ORYN) got pumped my no other than PennyStockProfessor back in September 2012 and the chart shows how badly that went.
That’s why it’s essential to do your own research and be extremely careful when weighing the risks when considering a promoted stock as an investment option.
