EnzymeBioSystems (OTCBB:ENZB) Crashes Hard on Record Volume
After a prolonged excited run, reality is starting to catch up with EnzymeBioSystems (OTCBB:ENZB). Yesterday the stock crashed spectacularly, wiping 44% of its market cap in mere hours. Volume swelled even further, reaching an all-time high for the ticker, at 274 thousand shares changing hands.
ENZB is one of the ugliest pump jobs of early 2015, which we covered in previous articles, while the pump was still going strong and the price was rushing up in March. As the spring pump ran out of breath and the dumping started, ENZB crashed horribly from $3.75 per share, all the way down to around $0.60 in a matter of about two weeks.
After the devastating crash ENZB simmered under a dollar for a long while, on volumes far smaller than the days of the pump. A new run in July sent the stock to $2 per share and after some hesitation the run extended to intraday highs of $2.50 a few days ago. Now this new bubble has popped too and the share price is down 53% in five sessions.
It seems traders were a little too quick to forget the March pump and its aftermath. With ENZB‘s fiscal year ending in June, the company has also not put up any new and exciting financial information in filings that change things from its early 2015 position. The most current report available is a quarterly for the three months ended March 31, which contains the following figures:
- $309 thousand in cash, comprising total assets
- $7 thousand in current liabilities
- ZERO revenues since inception
- $35 thousand in quarterly net loss
The same report explains that a certain Quattro Associates purchased 7.5 million ENZB shares for $580 thousand in cash, or at about $0.07 per share, later selling a portion of them at prices ranging from $1.3 to $1.7 per share.
ENZB had 33.2 million outstanding shares as of mid-May 2015. However, in June the company executed a curious 1-for-2 reverse split, reducing its OS with no apparent need for it, given that it has 195 million common shares authorized.
