CirTrans Corporation (OTC:CIRC) Adds 25% on Successful Lawsuit News
The OTC markets in winter 2013 seem to have a wide choice of underpriced double-zero stocks, and this time it was the turn of CirTrans Corporation (OTC:CIRC) to make the grade, logging the third biggest buying volumes of the past months, and trading around $0.0017. While CIRC has not been promoted for a while, its legal battle about the Playboy brand has been giving the company enough exposure to turn its stock into a fast and risky, highly accessible bet. 
In case of winning, CIRC will have an amazing bellwether energy drink brand. Otherwise, its business holds several weaknesses which slowly eroded its stock price to double-zero territory: 
- $39,497 cash
- $1.22 million total assets
- $28.64 million current liabilities
- $344,514 loss from operations
It is still uncertain if CIRC will manage to drive itself out of this unfavorable position. So far CIRC has managed to win the claims, and there has been no ban on the production of the Playboy energy drink. So, it is up to the brand to prove its mettle in the markets and possibly make CIRC a healthier company.
The company is currently capped at around $3 million and has 1.92 billion shares outstanding. Its stock fluctuates easily, adding 25% on Monday and starting the next day in the red, correcting downward on active selling. The movements of such a cheap stock may be quite independent from the general reporting of the company, and although CIRC has a marked working capital deficiency, the double-zero ticker may move on a wholly different logic from one day to the next.
The close counterpart, Bebida Beverage, Co. (OTC:BBDA) shows a similar graph, with spikes and valleys, but a general downward trend in the past three months. The stock is permanently down 20% over the past weeks, and seems to be headed downward for now. The company has not been promoted since the end of 2011 when Moving Pennies took it up. Meanwhile, it was depressed enough to turn into a double-zero bid.
While CIRC may sound hopeful for its future and confident about its success in court, it remains marked by all the risks and volatility of a sub-penny ticker, so it is best to do your own due diligence and decide on a time frame before losing your investment.
