Email Stock Picks Help Creative Edge Nutrition Inc (PINK:FITX) Back to Their Feet
The Distribution of nutraceutical products and dietary supplements seems to have joined the marijuana and gold exploration and is now among the hottest business sectors that penny stock companies take on. There have been countless start-up ventures that have embarked on just that journey and Creative Edge Nutrition Inc (PINK:FITX) is one of them.
They have been at it for a relatively short period of time and, truth be told, they have achieved something. We fear that it’s not enough, though. Although, they have generated some revenue, when the line is drawn you will see that they have been working at a loss continuously. Their latest financial statement covers the period before September 2012, we read through it and below you can find the most important figures:
- cash: $268 thousand
- current assets: $884 thousand
- current liabilities: $1.2 million
- revenue (April – September): $2.1 million
- net loss (April – September): $619 thousand
FITX fear that these financials might interfere with their credibility that’s probably why they have been pumping headlines like crazy over the last couple of weeks. Promoters Email Stock Picks have also joined in on the game and now the efforts are increased. The emails and press-releases are pretty much what you’d expect: letters of intent, new retail shops that are going to sell FITX‘s products, future revenues and everything in between. One particular piece of news caught our eye. It was released in December and it stated that FITX have signed a contract with a company called Ashford Finance LLC. This contract will provide FITX with a line of credit that will amount to $2 million. As hard as we tried, we could find absolutely nothing about Ashford Finance LLC, but we did find a company called Ashford Financial Group LLC, and if we have to be honest we weren’t impressed with what we dug out. Of course, the similarity of the names might be just an unfortunate coincidence, but if we were to consider FITX as an investment alternative, we would be extremely cautious. At least until we see conclusive proof that Ashford can deliver.
And if they can, will FITX be able to pay the loan off? If you ask them, they will probably say yes, but there are facts to consider. One of which is that they have been working at a loss ever since they started, and there can be absolutely no guarantee that things will miraculously change somehow in the coming months. The other is that they don’t shy away from issuing shares in order to cover up for debts. In 2012 alone, for example, they issued a total of 77 million, the consequence of which is, of course, massive dilution.
There is one more thing that might trip FITX on their way to success – the promoters are constantly targeting them. Why is that a bad thing? As seen from the chart, the performance after the pumps stop is not exactly inspiring.
And if you think for a moment that Email Stock Picks is somehow different to the other pumpers, we would like to present you with FOY JOHNSTON INC (PINK:FOYJ)’s chart. They were promoted by numerous newsletters, one of which was Email Stock Picks, back on January 31. Now, just a couple of days later, they are already down by about 53%.
