Creative Edge Nutrition Inc. (OTCMKTS:FITX) Going Down Hard
When we last reviewed Creative Edge Nutrition Inc. (OTCMKTS:FITX), it had managed to stabilize just above a nickel after one of its leaps. FITX‘s market standing has changed drastically since then – stock value has fallen to approximately half that amount. It seems neither hopeful announcements nor pumps can manage to offset the negatives a poor financial report carries.
So what happened? FITX has issued four press releases, all of which announced events that benefit the company in some way. It invited all its shareholders to an open house on its new location, held said event successfully, and in doing so attracted more than a little media attention.
FITX also managed to secure partnership agreement with RXNB Inc. for the first right of purchase of a pharmacy license in the State of Michigan. Under the terms of the agreement, the company is to establish a gateway for distribution of naturally occurring pharmaceuticals, in accordance with Michigan Senate Bill 0660.
The announcements sure did push the ticker upwards, as did the pump on Feb. 26, but ultimately all attempts to improve or even maintain the company’s market standing failed. As always, the reasons for FITX‘s unrelenting descent can be found in the numbers contained in the company’s latest financial report. The filing covering the period ended Dec. 31, 2013 certainly quelled whatever enthusiasm the press releases and pump may have caused:
- Cash – $19 thousand
- Total Current Assets – $0.8 million
- Total Current Liabilities – $4.6 million
- Revenues – $303 thousand (half of what it was in 2012)
- Gross profit from revenues – $131 thousand
- Net Loss – $1.4 (doubled YoY)
It is no wonder that once the hype died the company crashed back down, and fell as low as $0.0638. As it is, there is nothing but hopes and well-wishing pushing the company upwards. Meanwhile, its unconvincing financial reports are certainly a major set-back, as far as investors are concerned.
On that note, FITX does appear to have some potential – in its press releases, the company has stated that it “anticipates growing 1.3 million pounds of cannabis per year with a selling price of about $8 per gram and 80-87% profit margins”. If FITX manages to achieve its goals, the company may well make it big. However, FITX‘s persisting financial troubles and its continual lack of success in any business ventures up to date certainly leaves room for serious doubt. Whether or not the company can turn profitable in the future remains to be seen.
FITX wasn’t the only pot-stock that crashed on Monday. Both HEMP, INC. (OTCMKTS:HEMP) and Tranzbyte Corp. (OTCMKTS:ERBB) had red sessions yesterday, falling 9.41% and 13.27%, respectively.
