Green Innovations Ltd. (OTCBB:GNIN) Bounces After Hitting New 52-Week Low
Traders who have been dealing with pennystocks for the past year will surely remember the name of Green Innovations Ltd. (OTCBB:GNIN). The company was one of the major pumps that took place in early 2013. Thanks to all the artificial hype GNIN was able to reach share prices above 2 dollars but as all pumps go it wiped all of its gains when the campaign was over. Investors who believed all the email alerts and the report that assigned the company a price target of the ridiculous $5.62 per share suffered tremendous losses.
For the rest of the year GNIN couldn’t find a foothold and continued to drop further and further down the chart culminating in a new 52-week low of $0.068 posted three weeks ago. Since then the stock is making a reversal and is climbing back up again. Yesterday it surged by 46% and returned to price ranges above ten cents when it closed at $0.13. Volume also exploded with nearly 3 million traded shares compared to less than 500 thousand from the previous session.
Has the company finally managed to regain the trust of investors? Well, not really. With the exception of the paid pumpers almost all of the red flags around them are still there. GNIN continues to issue new PR articles about purchase order and new distributorship agreements that contain almost no useful information. Especially when you take a look at their financials which at the end of September were:
- $40 thousand cash
- $3.2 million total current assets
- $1.1 million total current liabilities
- $748 thousand quarterly revenues
- $2.2 million net loss
Even if you disregard the massive net loss the amount of revenues generated by sales was actually lower that the associated direct costs of $769 thousand. Not to mention that in just a little less than a year and a half GNIN has burned through a third of its authorized shares with 52 million outstanding out of the 150 million authorized.
As we have said in our previous articles about them GNIN‘s Chief Financial Officer Mr. Bruce Harmon has managed to earn the distrust of many investors on message boards due to his past involvement with other pennystock companies. Any deals involving the stock of GNIN should be done with extreme caution and after carefully weighing in all the risks. 