Creative Edge Nutrition, Inc. (OTCMKTS:FITX) Surges on Renewed Enthusiasm

Surely enough Creative Edge Nutrition, Inc. (OTCMKTS:FITX) moved in only one direction for most of the session. At the end of the day FITX traded nearly 100 million shares more than the 39 million from last Friday. More importantly the stock closed 34% higher at $0.0269 just shy of its intraday high of $0.027.

Interest in FITX must have certainly been influenced by the actions of the CEO Mr. Bill Chaaban. Instead of using the usual channels and making an official announcement Mr. Chabaan decided to turn to Facebook. First he posted a picture of a couple of purchase orders made by General Nutrition Corporation (GNC). The orders are dated November 25, 2013 with no further information given. The second post was equally speculative. It hinted at a possible deal with another marijuana pennystock – Growlife, Inc. (OTCBB:PHOT) through PHOT’s GIFT program. Until more details are provided these are just Facebook posts trying to boost the hype around the company. 

 On January 13 FITX filed its annual financial report which revealed the following results: 

• $52 thousand cash
• $741 thousand total current assets
• $3 million total current liabilities
• $2.3 million revenues
• $5.5 million net loss

Although they are generating respectable revenues the net loss for the year more than doubles them. Investors should also consider that even after two increases of the amount of authorized shares that took place during 2013 FITX will more than likely have to do another one. Currently they have 3.4 billion outstanding shares out of the 3.5 billion authorized. 

Thanks to the progress it has made with its business plan FITX might be able to keep at least some of the current hype-induced gains in price share. Still as any pennystock the company requires serious due diligence before any making any trades. 

Curiously enough one of the few companies that took a step down during yesterday’s trading was the aforementioned PHOT. They closed in the red for a fifth time in a row after losing another 7% and sliding down to $0.19 per share. Currently PHOT has wiped nearly 60% of its value compared to the recent highs of $0.46.