Creative Edge Nutrition Inc (PINK:FITX) Blew the Roof Up Yesterday
While doing the research on Creative Edge Nutrition Inc (PINK:FITX) yesterday, we stumbled upon their latest press-release. We weren’t that surprised when we read that they would like to sink their teeth in a new business, but we wee rather perplexed by the fact that they have chosen medical marijuana.
Still, we are well aware of how hot a topic this is right now in Pennyland, and we predicted that some active trading days are awaiting FITX. When we arrived at the office this morning, we were quite eager to check out what the ticker’s performance was yesterday and although we were expecting a jump, the massive figures still made us drop our coffee mugs. To put things into perspective, the average daily trading volume for FITX has been hovering around the 11 million mark. Yesterday a whopping 214 million shares changed hands. More importantly, the price gained $0.0111 or 191%.
Right now, just a couple of hours into today’s trading session, things are shaping up to be quite frantic as well, and as of the time of writing this article, the volume is nudging the 65 million mark. While the price is down at the moment, the stock is so volatile, that any predictions as to where it will be at the closing bell will be based purely on guesswork.
We reckon however, that the big question on everybody’s mind right now is “Will FITX be able to keep the high prices in the long run?”. The answer to that question is directly related to the success of their newest product – the revolutionary hemp protein powder that yesterday’s press release talked about. They have some high hopes for it, but there are a couple of things that we’re not too sure about.
For one, as we mentioned yesterday, we’re familiar with FITX. We covered them during the previous pump that took place back in February and even though since then they have published a new quarterly report, it still doesn’t inspire any confidence. Here are the figures once again:
- cash: $95 thousand
- current assets: $460 thousand
- current liabilities: $1 million
- quarterly revenue: $774 thousand
- quarterly net loss: $652 thousand
It’s pretty clear from those financials that while they have managed to market their products so far, they are unable to turn a profit and a look into their previous statements reveals that this has been going on for quite some time. So what are they going to change in order to turn the hemp protein into a profitable product? Nobody knows.
The other thing that makes us rather nervous is the fact that they have a long history of paid promotions and the results are often ugly. The one we wrote about in February, for example, backed up by news of new sources of financing. As soon as the emails stopped, however, the price fell back down to where it was before the promotion and for more than a month, there has been no information as to whether FITX got the money or not.
All in all, if the current promotion ends with the same catastrophic results that the previous ones did, the investors who got in on the medical marijuana hype could end up seriously burned. Which is what often happens with these sort of pumps, by the way. And since Stock Mister were the ones who received the biggest compensation for yesterday’s campaign on FITX, we decided to show you one of the tickers from their portfolio – BUYER GROUP INTL INC (PINK:BYRG). Just like FITX, BYRG‘s pump was garnished with some optimistic announcements, but as the chart on the right shows, it all ended in disaster.
If we are to believe all the facts listed above, the same thing might happen to FITX really soon, which is why you should be extremely careful in case you have decided to jump in.
