Corporate Resource Services, Inc. (OTCBB:CRRS) Crashes After Promising 7 Month Run
2013 started great for Corporate Resource Services, Inc. (OTCBB:CRRS) as they were steadily, but surely climbing the charts, with no big drops. Their stock had periods of great gains followed by months, at times, of steady trading with no big drops in price. Yesterday, however, didn’t go as one of the days from the beginning of the year until this moment, as their stock’s price registered its first big drop.
After a promising run that started on July 15 the stock of CRRS gained a good 41% in value over the course of three days, going from $2.22 to $3.73. After that their price was hovering around the mark of $3.50 and it all seemed like this was just the usual quieter period that follows their ascends. After all, that is what we have been seeing from the beginning of the year.
Well, it turned out otherwise. After a little over a week of little movements, which cancelled out one another their stock finally showed us that it can drop in the same way that it jumps.
Yesterday’s session went badly for CRRS‘s stock as they registered the first big candle in a negative direction. Being the quiet stock that it is (with low traded volumes) the trade session started of slowly but surely, in a negative direction. After noon things heated up a bit with a more trades going on and the price plummeted in the minutes before 01:00 PM.
The price reached a low of $2.35, which can be attributed to the heavy trading, that probably took place due to the slow descent of the stock’s price that reached $2.95 right before the big drop.There were probably some investors that were worried of loosing more value, who were trading cheaper and cheaper in order to sell out what they have.
After the heated sales quieted down the stock managed to regain some of its previous value, but the daily chart continued mostly in a downward direction. The price was hovering around $2.60, but managed to reach $2.93 at market close, having dropped 13% from the previous day’s $3.40. The volume was almost twice as much as their average of 77 thousand with a total of 142 thousand shares that switched hands, generating a trade value of $416 thousand.
CRRS, however, are one of the better companies in the OTC Markets, a rare beast that has decent financials and actual operations, so they might get back on track after the drop. Let’s check out what they actually have.
- cash: $253 thousand
- total current assets: $33 million
- total current liabilities: $35 million
- revenues: $194 million
- net income: $37 thousand
The decent amount of cash and the fact that they have finally started working at a profit shows good signs and some believe that they might be headed to a higher tier, a listing in the NASDAQ. Furthermore their latest press release speaks of their goals to expand business in the United Kingdom and their meetings with staffing companies situated in the UK and their discussions on acquisition possibilities.
For now the company seems to be well fit for expansion, but there are no definitive news on that matter. A concern for the company with their current volumes of around 100 thousand shares per day are the 21 million shares owned by director Robert Casserra, that were acquired at $0.67 in May, which if dumped may drive the price down. A good sign is that CRRS haven’t been pumped, but it should be considered a possibility that this might happen in the near future causing big losses in value.
Having all that in mind be sure to do your due diligence and weigh out the risks for yourself.
Another decent company in the OTC Markets is Affymax, Inc. (OTCMKTS:AFFY), who have started to gather momentum in an upward direction with another 15% gained in yesterday’s session, currently standing at $1.75. Not so good looking is the situation for InVivo Therapeutics Holdings Corp (OTCBB:NVIV), who are currently at a low after reaching a peak of $5.67 with a current price of $5.11.
