Creative Edge Nutrition Inc. (OTCMKTS:FITX) Still Going Down

The speed Creative Edge Nutrition Inc. (OTCMKTS:FITX) had gathered around the holidays finally gave out on by the end of last week, when the company crashed, along with every other in the marijuana stocks sector. Since then, FITX has consistently failed to recover its upward momentum.

The fall that occurred just before the weekend took many companies down, hard. HEMP, INC.(OTCMKTS:HEMP) and Tranzbyte Corp. (OTCMKTS:ERBB) took a massive blow, but quickly recovered and shot up again, halting just yesterday. FITX, on the other hand, has remained relatively steady on the level it dropped to in the Jan. 9 session.

That could be considered a bit odd, since the marijuana fever is still running high in the U.S. Given the volatile behavior of pot stocks lately marijuana companies didn’t move as much as was to be expected during yesterday’s session.

FITX‘s arrested development was anything but unexpected, though – true, the company’s effort got it featured in Crain’s Detroit Business Magazine on Jan. 13. However, the news about the CEO’s excitement over the publication was more or less overshadowed by the failure written all over the annual financial report FITX filed that very same day. Said report covered the fiscal year ended Sept. 30, 2013 and revealed a disturbing state of affairs:

• Cash on hand $52 thousand, down five times YoY
• Total current liabilities $3 million
• Annual revenues $2.3 million
• Annual net loss $5.5 million

With this in mind it becomes less surprising that FITX opened as low as $0.019 on Jan. 14. Even with the ticker surging up some and then going steady throughout the day, the company ended up losing 7.59% of its market value.

Lately the market offers many opportunities for buyers who would wish to commit to marijuana stocks. However investors should keep in mind that though some of the companies appear hot, most of them are the same ones that have been scraping the bottom of the figurative barrel ever since the the last craze ended. It bears reminding that it took another weed hype to get them going, and more importantly – their financial standing has not necessarily improved just because they’re heavily traded in recent sessions.

Due diligence is, a usual, advisory when dealing with high risk stocks.