Creative Edge Nutrition Inc(OTCMKTS:FITX) Stumbles After The Jump
After its amazing jump in the Jan. 7 session, in which Creative Edge Nutrition Inc. (OTCMKTS:FITX) more than tripled its market value, things were looking hot for FITX. Their momentum did not last, however – after another amazing jump the ticker ground to a halt, and crashed spectacularly yesterday.
The company had been doing pretty well since the holidays began, with only the hiccup of Jan 3. marring the perfection of its growth charts. The 204.84% share price jump on Jan. 7 was certainly a sight to behold, and that wasn’t even the last of it!
On the very next day the company opened nearly 30% higher than the last session, as pres-releases, hopeful commentary, optimistic publications and videos of FITX officials being welcomed into the town of Lakeshore flooded the message boards. The press conference the company held was hugely successful – thanks to a few short statements from its CEO market value was increased to $0.0251 – an amazing achievement, to be sure. However it was all too clear that this state of developments was too good to last.
And it didn’t. Yesterday FITX crashed 34.26%, despite all the “good news” the company published. Like the enactment of new regulations for the production and distribution of medical marijuana for the Canadian market by Health Canada, which set the rules for licensed commercial producers to grow, process and distribute marijuana products directly to marijuana patients and medical providers in Canada. Or the fact that the FITX‘s web-site is up and running.
Traders proved to be indifferent to all of that, as well as the brief mention of the company’s success by Sizzling Stock Picks. Investor lack of support became immediately evident – after nearly four thousand trades in a single session, the ticker closed at $0.0165. All in all – a failure, and an expected one at that.
We have analyzed FITX‘s financial state on multiple occasions, and as persistent readers may remember, last time we had a look at we just couldn’t paint a pretty picture. With total current assets of $0.6 million and a net loss of more than 6 times that amount, their last financial report is a sad sight indeed.
But although said troubled financial state is certainly worth noting, it’s highly unlikely that it is the main factor responsible for the company’s fall. As was mentioned on multiple occasions during the last couple of days, the marijuana rush has affected the market of the whole industry and every company that holds a marijuana-related interest is suffering the consequences. Ever since Christmas we have been witnessing a market roller-coaster, with share value increases and sudden drops that have very little to do with reason or trading strategy. It’s all in the hype, and it can take a company both ways. Just as it happened on Jan. 3 and what is happening right now to FITX.
HEMP, INC.(OTCMKTS:HEMP) is now experiencing the very same phenomenon – their stock dropped more than 24% yesterday, right after it nearly doubled its market value the day before.
