Grilled Cheese Truck Inc (OTCMKTS:GRLD) Trundles Along

Grilled Cheese Truck Inc (OTCMKTS:GRLD) started trading on the OTCQB tier of the OTC Markets at the end of January when the ticker was sitting at around $6 per share. Just over five months later, it hit a low of just $0.60. Was anyone surprised by the massive crash?

Well, none other than former U.S. Army General Wesley Clark is on the Board of Directors. He is undoubtedly a man of many achievements, but unfortunately, his success at GRLD has been limited. When he took his seat on the Board, he promised that he’ll draw in many military veterans who will either work at GRLD‘s trucks or sign franchising deals with the company, but the latest 10-Q shows that his efforts haven’t really paid off.

Here’s a summary of the financials recorded on June 30:

• cash: $86,247
• current assets: $384,592
• current liabilities: $3,766,251
• quarterly revenues: $960,352
• quarterly net loss: $749,498

Although there is indeed some movement in the revenue department and although the new truck that they received a few weeks ago should give sales another boost, it’s fair to say that General Clark as well as the rest of the people running GRLD still have a lot of work to do before they can call the company a successful business.

This, by the way, is not a new feeling for General Clark. A few years after he ran for President, he started more than a few business relationships with various OTC-listed enterprises, but unfortunately, most of the companies he has been involved with have been unsuccessful. In fact, the pattern has been so repetitive, that Bloomberg decided to dedicate a full article to his penny stock endeavors.

Nevertheless, some people don’t reckon that this will necessarily put a spoke in GRLD‘s wheels. After reaching its 52-week low in July, the ticker bounced and it’s been relatively active since then. The performance is not exactly stable. Over the last two weeks, for example, it has dropped from $1.45 per share all the way to $1.33 which goes to show that investors are still not quite sure what to make of the stock. Nevertheless, an 8% drop is hardly scary in Pennyland, and the fact that the volumes are still pretty healthy goes to show that there are people willing to take the punt.

And, of course, there’s nothing wrong with that. The growing revenues, for one, show that the business plan has some potential. You should be careful, however, and you mustn’t forget that the higher the stock goes, the greater the risk. Especially if the $570 thousand worth of notes convertible at $1 are still outstanding. More details about the toxic debt can be found in our previous article.