Grillit, Inc. (OTCMKTS:GRLT) Picks Up Speed
Yesterday was a hot action day for Grillit, Inc. (OTCMKTS:GRLT). The company surged on strong volume once again, closing 79% up, at $1.30 per share.
Daily share volume first picked up on July 29, jumping to nearly half a million shares compared against an average of around 10 thousand over the previous twenty sessions. The company suddenly surged on strong volume and managed a near-fivefold increase in just four sessions. What was it that got investors so excited about GRLT in the first place?
The company did get into a flurry of activity since it changed names in April and dropped its old name – Holdings Energy, Inc. GRLT aims to offer fast casual food that is meant to be a non-pretentious and healthier alternative to regular fast food joints. The company switched top-level management last week, appointing Mr. Ghazi Hajj as CEO and chairman of the board. The company further announced it will be opening its first franchised restaurant on August 2, with ‘plans’ to open another 58 locations in the next five years.
This amount of PR buzz and optimistic, even if forward-looking news can make traders get a little too hot-headed and jump on the excitement bandwagon. This hype was aided by several paid pumps targeting GRLT that cropped up on Jul 28 and Jul 29. Financially the company had to show the following as of March 31 this year – the end date of its last reported period:
- $3 thousand in cash
- $187 thousand in current liabilities
- $209 thousand in quarterly revenues
- $46 thousand in quarterly net loss
With rather limited resources on its hands and mostly optimism to carry things forward, GRLT is in for a hard time opening its planned 58 new franchised locations. The company did announce a $3 million line of credit that is not yet reflected in an official filing, with a quarter of a million already received in mid-July. Further details regarding the precise terms of the debt financing agreement, described by the company as having a ‘limited equity kicker’, will probably help investors make a better-informed decision. Regardless, with GRLT having already spiked as high as it has, traders should be well aware of all the dangers associated with trying to chase stocks as they go through the roof, especially when they’ve been sitting at price levels many times lower just days ago.
Other significant Thursday market movers include Sanborn Resources, Inc. (OTCBB:SANB) who are still storming the charts, prodded along by paid pumps, closing another 16% up at $0.70 per share. Alternative Energy Partners, Inc. (OTCBB:AEGY) were less fortunate and closed the session almost a third down, at $0.002 per share.
