Fresh Vending International, Inc. (OTCBB:VEND) Leaves the Peak
The financial data of Fresh Vending International, Inc. (OTCBB:VEND) failed to impress too much, and the ticker corrected the record levels from Wednesday. VEND sank by more than 29% to $2.70, on record selling volumes of $2.56 million. 
VEND marked the following achievements in the latest quarter:
- $1.86 million vending machine sales
- $2.02 million total revenues
- $241,780 net loss, compared to $207 K net gain for the same quarter of 2012
- $231,874 cash
There is a great disparity between the SEC filing and results on the profile page of the company on financial sites. And since last quarter, VEND has tightened its game and its reporting methods, showing a genuine improvement from the $109 dollars in cash as of June 2013. Total current liabilities are still high, above $4 million.
But none of this was enough to stop sellers from taking profits a bit below the $4 mark, instead of cheering VEND to even higher positions. This, plus a no-fee promotional email, created enough activity and a selling opportunity. And investors’ forums mention the spreading of a paper mailer, which may explain the creeping up of activity as more naïve investors get acquainted with VEND and jump on the bandwagon.
While VEND may hope for a recovery, other tickers rarely recover the positions at the peak of the promotion, before the first wave of selling. And later investors may catch up on the positive developments in the balance sheet.
Still, VEND has just 18 million outstanding shares- and if the paper mailer persists, this holds enough space for stock dilution, increasing insider holdings and selling for profit. We will have to wait and see until the conditions around the paper mailer are clearer.
Elite Pharmaceuticals, Inc. (OTCBB:ELTP) was a much-promising ticker with solid earnings and a longer-term potential. Yet the sudden appearance on stage and the disproportionate interest boosted ELTP to unsustainable levels.
Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) also had all the reasons to make a winning streak, but has been sinking in the past weeks as initial enthusiasm was the major support for the price levels.
If you still see VEND as a buying opportunity, keep in mind that corrections can run both deep, or long, as in the above examples. Make sure you can afford to ride out the rough patches that will almost certainly await VEND.
