Converted Organics, Inc. (OTC:COIN) Tries to Crawl Out
A year ago, we wrote off Converted Organics, Inc. (OTC:COIN), as the stock fell to hundredths of a cent. But in the past 10 days, the ticker increased five-fold on valley-buying, on significant volumes. The stock has attempted recovery before, especially with the pumps in April last year, but the latest valley buying interest needs a closer look. COIN added close to 53% on Tuesday, reaching $0.0052. 
COIN is on a mission to produce and provide naturally-sourced fertilizers, offering small-scale products for home gardening. To keep up its business, the company relies on the following financial resources: 
- $765,315 cash
- $1.13 million current assets
- $3.74 million total current liabilities
- $385,980 revenues
- $657,898 net loss
Clocking in at a relatively modest market cap of $2 million, this company may invite further investment as it clearly shows a real business activity, though still losing and accumulating losses. But the real warning may come from the underpriced stock that has shown erratic and large corrections, parting investors easily from their money.
The latest pump by The Stock Psycho in April last year paints a very similar picture of the company: relatively low volumes, market cap around 2 million and expectations for significant future growth. It is a wonder why COIN is not riding the trend of organic technologies that are of late getting attached to the medical marijuana industry and reaping gains from the general stock bubble developing there.
A similar ticker that rose to better visibility in 2013 is BioNitrogen Corp. (OTC:BION), a recycler of agricultural waste, striving to replace synthetically created fertilizer with substance derived from biomass. The ticker went up on press release hype and valley buying in November, increasing six times in price. Yet the stock was capable of correcting down 30% in a few weeks. COIN is an even more dramatic example, so estimate for yourself if you can absorb big daily losses before going for the newest upward trend.
