ENTERTAINMENT ARTS (OTCMKTS:EARI) Slinks to New 52-Week Low
Following a month of turbulence and high volatility back in August, the share price of Entertainment Arts Research Inc (OTCMKTS:EARI) seemed to find its footing around five cents per share. However. a massive volume surge on Friday tipped the stock over the edge and sent it tumbling down the charts.
Hot on the heels of Friday’s 19% drop on massive volume, yesterday EARI slid another 23%, wedging itself at a fresh 52-week low. By the closing bell EARI was priced at $0.03 per share.
The sudden jolt and the record volume logged on Friday were likely aided by a couple of pump emails sent out by promoter outfits. The promotions contained little outside of the usual touting drivel, complete with imaginary support levels and promises of a clear-sky breakout. The reality of the situation is obviously quite different, now that EARI has slipped nearly 40% from the moment the emails were sent out.
The pumps also never mentioned that EARI is headquartered in a quaint residential house in a quiet corner of a Georgia town. Nor do they mention that the company’s last reported financial situation is far from rosy. Here is what EARI had to show on its balance sheet as of June 30:
- $41 thousand in cash
- $194 thousand in current liabilities
- ZERO in quarterly revenues
- $82 thousand in quarterly net loss
Those numbers do very little to inspire confidence in the company’s plans to become a “family of companies” looking to fill a “tremendous void” in the online marketing and brand development space. EARI acquired GoLoyal – an online marketing company, back in July and stated that all the detailed figures about the deal will be included in its Q3 report.
There’s also the matter with a convertible note that can be turned into EARI shares at a 40% discount from the lowest trading price 20 days prior to conversion – a staple of OTC financing it would appear, which we covered in a previous article.
