Fuse Science, Inc. (OTCMKTS:DROP) Crashes on High Volume
The last time we covered Fuse Science, Inc. (OTCMKTS:DROP) they were headed for a 52-week low. This was back in the beginning of July and DROP managed to recover some of its value, just to drop even further down. With yesterday’s loss the ticker is roughly 50% down from when we previously covered the company.
There seems to be no apparent reason for DROP to keep sliding down. Every now and then we see an occasional press release made from the company announcing the progress they have with their marketing campaign and the sponsorships of sportsmen.
The company is sponsoring all sorts of sportsmen, from Tiger Woods to 13 year old NASCAR young hope Garret Jones. Most recently they announced Kris Versteeg from the Florida Panthers will also be participating in their marketing campaign, but that didn’t stop the stock from dropping.
Yesterday the ticker dropped a hefty 17.40% in price on a very high volume. The amount of shares that switched hands in the session was more than 8 times the tickers average, with a total of 8.4 million, which helped generate a decent trade value of $394 thousand.
You would think that when DROP is advertised by so many sportsmen and has a market cap of $15 million they are doing very good financially. Well, unfortunately they still aren’t able to operate at a profit and registered quite a big net loss for the second quarter of this year.
- cash: $380 thousand
- total current assets: $1.9 million
- total current liabilities: $1.9 million
- revenue: $322 thousand
- net loss: $3.6 million
Indeed they managed to increase their revenue substantially, but the net loss has also grown and when it is 10 times the net sales it starts to raise some red flags. It’s not sure if they will ever be able to make a profit with such big expenses, because they have 3 products that are cheap and usefull mainly for professional athletes and sportsmen.
In any case, be sure to do a lot of due diligence and weigh out the risks for yourself if you have any thoughts of investing in DROP.
Another company that had a quite significant drop yesterday was Puget Technologies, Inc. (OTCBB:PUGE), who lost 28% in value. On the other hand 3D Eye Solutions, Inc. (OTCMKTS:TDEY) had a pretty decent session in which they recorded a healthy 22% gain.
