Greenwood Hall Inc. (OTCMKTS:ELRN) Crashes horribly
Greenwood Hall Inc. (OTCMKTS:ELRN) lost 34.78% of its market cap yesterday, after more than 158 thousand shares of its common stock changed hands.
The reason behind the drop ELRN experienced yesterday is as mysterious as the reason it jumped up back on September 25, 2015 in the first place. Nothing of obvious relevance happened back then, but that didn’t stop the ticker from suddenly becoming liquid after months of inactivity and making a run up to almost $2 over the course of the next ten days or so.
However, it seems like the miraculous ascent is now over. And how can it not be? A ticker can be pushed up the charts by unseen forces for only so long, before the market’s tendency to balance things out brings it where it belongs.
And in this case, due diligence does not seem to reveal a valid reason for ELRN to be perched at the top of the charts. Its latest financial report looked like this:
- NO CASH
- Accounts receivable & other current assets – $855 thousand
- Current liabilities – $8.3 million, out of which
- Notes payable – $3 million
- Revenues – $2.2 million
- Net loss – $2 million
To summarize – ELRN looks like a classic picture of OTC Markets mediocrity. It had a good, albeit mysterious run. Said climb came to an abrupt and ugly end. As things currently are, there is nothing to stop the ticker to returning to the state of illiquid obscurity that it was in a month ago.
