Creative Edge Nutrition Inc. (OTCMKTS:FITX) Still Headed Down
Creative Edge Nutrition Inc. (OTCMKTS:FITX) slumped another 14.89% yesterday, its continuous descent now lasting for six sessions in a row.
The ticker opened dangerously low and tried to recover some ground in the first hour or so of trading, but ultimately failed to do so and closed deep in the red again. This was not really a surprising turn of events, considering the fact that the company failed to submit the quarterly report that was due May 15, and instead gave its investors yet another notification of late filing.
The reason given for the delay was that the company “Needs additional time for consolidation”, an excuse that never goes out of style with marijuana companies, most of who never seem to be able to file on time. FITX alone has postponed its filings three times since the end of 2013. Is it any wonder then, that the company is losing credibility with investors who want to do due diligence, and do it on time?
And when it comes to the marijuana branch in general, and FITX in particular, current information is absolutely crucial for investors that don’t want to blindly gamble with their money. This is especially true now that the SEC has clearly declared that pumps and misleading PR will not be tolerated.
This state of developments puts FITX in a very precarious position. The company’s latest financial report clearly shows that the company was not ready for a roll-out at the end of the period it covered – which is bad for FITX stock prices. The SEC has finally decided to put an end to the misleading marijuana news that seem to be the main engine keeping the sector up – which is also bad for FITX stock prices. Delaying a filing is bad for FITX stock prices, but not filing or showing a poor financial for the first quarter of 2014 could have disastrous results for the ticker.
This means that there are only three immediately obvious ways for the company to rise again. A sector wide surge could sweep every marijuana ticker and fling them all sky-high – but that’s unlikely, in light of the recent suspension panic. The company could disregard the SEC’s warning and try to rely on PR to raise its stock again – and risk being suspended like Fusion Pharm Inc. (OTCMKTS:FSPM) and Growlife Inc. (OTCMKTS:PHOT). Or, the FITX could come up with a brilliant balance sheet for the period ended March 31, 2014 – a possibility about which analysts, traders and FITX supporters are having doubts at the moment.
Said financial report showing anything less than a clear sign of commercial success would not bode well for FITX. In any case, the aforementioned balance sheet should hit the web today, and is expected to have an immediate effect on the company’s market value.
