Creative Edge Nutrition Inc. (OTCMKTS:FITX) Sinks Even Further Down
Creative Edge Nutrition Inc. (OTCMKTS:FITX) was stable for three consecutive sessions in the middle of last week, but that didn’t last long. Yesterday the ticker fell another 7%, and it looks like it’s just starting to pick up downward momentum.
It is universally agreed, that publicity stunts, vague promises and PR boasts can indeed push a ticker upwards, but in the end it is the company’s commercial success that will keep it at the top.
FITX got the first part right – an endless stream of press releases and social media updates does an excellent job of keeping marijuana stock enthusiasts hyped up about the company, and manages to lure more investors. But what has FITX actually delivered on the second account?
Not much, it turns out after a bit of research. FITX‘s quarterly report for the period ended Dec 31, 2013 left a lot to be desired.
- Cash – $19 thousand
- Total Current Assets – $0.8 million
- Total Current Liabilities – $4.6 million
- Revenues – $303 thousand
- Net loss – $1.4 million
FITX supporters argue that this data is “old news” and that the company has shown a ton of improvement since then and is on the verge of “making it big”. A bit of reading reveals such claims to be as dubious as the company’s financials are unimpressive. Because, when you think about it, what achievements has FITX‘s “amazing management” shown investors thus far?
A 53 thousand square foot growing facility, about half of which has actually been built to date – complete with packed dirt floors, chain link fences and other similar marvels of modern technology. An unreported buy of a second “R&D” site, which appears completely barren. No license to grow marijuana – not from the municipality or from any other local authority. No license, in fact, to use the existing facility for business of any kind. Not even a clue as to when, or even if, all the necessary permits are going to be issued. No estimation as to how long will it take to properly equip the facility with the technology needed to produce quality material, or grow the first crop after this is done. Vague claims that mysterious undisclosed third parties are funding the project, but no filings on the matter.
What does all that amount to? It is up to each individual investor to decide for himself, but it is strongly advised to take these facts into consideration and not give into marijuana stock induced enthusiasm when dealing with FITX. Checking out the quarterly report that the company should be filing TODAY may also not be a bad idea.
Another marijuana company that didn’t have much success in yesterday’s session is Triton Distribution Systems Inc. (OTCMKTS:TTDZ), who fell 7.44% in that same session.
