Enthusiasm Around Konared Corp (OTCBB:KRED) Intensifies

[[tagnumber 0]]Konared Corp (OTCBB:<a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=KRED“>KRED</a>) finished Friday‘s session at $0.885 and registered its fourth consecutive green day. At 1.49%, the daily gains are not that huge, but the volumes are quite significant. <a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=KRED“>KRED</a> managed to shift around $930 thousand worth of shares which means that the ticker is high up on the list of the most heavily traded OTC stocks for last week. [[tagnumber 1]]The climb seems tectonically slow, but it also appears to be quite consistent. The constant interest from investors could suggest that <a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=KRED“>KRED</a> might soon be challenging the $0.90 per share levels. [[tagnumber 2]] [[tagnumber 1]]On the whole, the short–term outlook doesn‘t seem too bad. As is often the case, however, there are a few things worth considering.[[tagnumber 2]] [[tagnumber 1]]For one, the market cap, estimated at Friday‘s close, stands at well over $60 million and this really seems like a stretch for a company that went public a couple of months ago. What‘s more, the figures recently reported in an 8–K form aren‘t substantial enough to convince us that they really deserve it. According to the filing, as of September 30, <a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=KRED“>KRED</a> had:[[tagnumber 2]] [[tagnumber 7]] [[tagnumber 8]]$119 thousand in cash[[tagnumber 9]] [[tagnumber 8]]$629 thousand in current assets[[tagnumber 9]] [[tagnumber 8]]$1.2 million in current liabilities[[tagnumber 9]] [[tagnumber 8]]$174 thousand in quarterly revenues[[tagnumber 9]] [[tagnumber 8]]$257 thousand in quarterly net loss[[tagnumber 9]] [[tagnumber 18]] [[tagnumber 1]]They do promise that the transaction from a private to a publicly traded entity should stabilize the company‘s fundamentals substantially, but at the moment, estimating their chances of success remains really hard.[[tagnumber 2]] [[tagnumber 1]]The biggest problem, however, is the fact that <a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=KRED“>KRED</a> has fallen victim to the pumpers.[[tagnumber 2]] [[tagnumber 1]]As we mentioned last week, at least $2.3 million has been spent on the promotion which started on January 13. Touting is done through a few landing pages, an advertisement video on YouTube, and a couple of email alerts.[[tagnumber 2]] [[tagnumber 1]]The high volumes suggest that the word is properly spread around and it‘s clear that, although the ticker seems reluctant to make significant jumps up the chart, there‘s no shortage of buyers. The multi–million dollar pump and the shaky financial situation, however, are prerequisites for a violent drop.[[tagnumber 2]] [[tagnumber 1]][[tagnumber 28]]Speaking of which, Tiger Oil and Energy, Inc. (OTCMKTS:<a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=TGRO“>TGRO</a>) is another large–scale promotion that seems to be on its last legs. The $2.5 million awareness campaign for them started back at the beginning of December and it did manage to push the stock up to nearly $1.60 per share. Currently, though, <a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=TGRO“>TGRO</a> is hovering just above the $0.60 mark which means that it has lost around 62% of its market cap in less than four weeks.[[tagnumber 2]] [[tagnumber 1]]Some of you might argue that <a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=KRED“>KRED</a> is bettered positioned to weather the promotional storm because, unlike <a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=TGRO“>TGRO</a> and the majority of pumped small cap enterprises, it is an operating and revenue–generating entity.[[tagnumber 2]] [[tagnumber 1]]As we wrote on Friday, however, that‘s no guarantee for success. Especially when you have in mind the 25 million shares of discounted stock that are currently part of <a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=KRED“>KRED</a>‘s float.[[tagnumber 2]]