Creative Edge Nutrition, Inc. (OTCMKTS:FITX) Triples Market Value In One Session
Creative Edge Nutrition, Inc. (OTCMKTS:FITX) more than tripled its market value in the Jan. 7 session, climbing the charts with record speed. All driven by the marijuana fever around the legalization of the recreational use of the drug, that is presently rocking the U.S.
Stocks all around the industry went up as the new year approached, only halting briefly as the market contracted on Jan. 3. The company, like almost all companies in the sector suffered from this shrinkage somewhat, but quickly recovered its momentum. FITX‘s jump on the very next day even outdid Fusion Pharm Inc. (OTCMKTS:FSPM), managing an astounding 204.84% up.
Phenomenal results, if only they didn’t ring so hollow. As we, here on HotStocked, have said on multiple occasions during the last couple of days, the marijuana stocks market is presently in an extremely volatile state. The media has provided pot-stock companies with heaps of unwarranted attention, that has affected the whole marijuana industry much in the way a tout would.
As a direct result of all publicity thrown their way and the controversial nature of the product, companies such as FITX are jumping sky-high based on hype rather than achievements. Since the pot frenzy began the market seems to be snowballing out of control, prices pushed up by buyers driven by nothing but enthusiasm.
Those same buyers would do well to remember that the very same thing happened around February 2013 and ended in utter disaster. The sudden jump in share prices was immediately followed by a crash that sent marijuana-related companies tumbling down from the highs they’d achieved. Most tickers had remained there until the new hype began.
Thus, as always, due diligence is advisory when dealing with unstable stock. Anyone who’d done it would immediately realize that FITX, along with most other similar companies’, share price jumps are largely unrelated to their current economic standing or recent progress.
FITX has no new products, patents, new partners, not even disclosure or press releases, no new filings after their quarterly that came out on Aug. 20. Nothing to suggest that they are getting closer to making a profit, or mitigating their losses. Losses, that were approximately $3 million the last time they checked in. A frightening amount, if you take into account the fact that they’d declared that their “gross profit” is about ten times less in the very same report.
The facts are abundant and clear enough for anyone to understand.
