GrilliT, Inc. (OTCMKTS:GRLT) Shoots Through the Roof on New Promotion

GrilliT, Inc. (OTCMKTS:GRLT) heats up the grills with its amazing running streak, and the fuel is a new promotional email, coming just in time on August 5th. The restaurant company jumped more than 78% on more than $790,000 buying volumes, reaching $2.32, a good two dollars toward the share price earned in just a few promotional days.

For GRLT, the pump campaign has been very cost-effective. For only $7,000 and with two emails, the awesome climb was achieved. The true question is how long this golden period will last. The latest pumper is FinancialNewsMedia.com, following the lead of Wall Street Buzz that started the whole thing with the August 2nd email.

On the plus side, the company is just on the verge of a franchise rollout. But we still don’t know how efficiently this scenario will be realized. We only know that the news of the opening, along with a new line of credit, created unprecedented volumes. And until the opening, GRLT held the following financial strengths and weaknesses:

• $3 thousand in cash

• $187 thousand in current liabilities

• $209 thousand in quarterly revenues

• $46 thousand in quarterly net loss

The results are a minor improvement on the December 2011 results, which show a tougher picture:

• Zero cash as of December 2011

• $101,025 total assets

• $808,369 total liabilities

• Zero revenues

• $136,138 net loss for the quarter ended December 2011

In the years after, the pink sheet company has kept the results under cover, so there is the unknown of the true financial burden of the restaurant chain. We still don’t know how much potential GRLT has to lead a boom of the fast food industry, one targeted to health-conscious consumers, with 58 locations planned in the next five years. GRLT runs mostly on optimism, with a new name since April and an updated leadership team.

A company that risked in a similar way was Jammin’ Java, Inc. (OTCMKTS:JAMN), which despite the negatives on its financial sheets managed to unroll a series of high-quality coffee franchises, and quickly log revenues. The company’s climb, however, was calmer, picking up in trading volumes in the beginning of 2013 when the company became more active and came nearer to the markets.

But in the case of GRLT, one cannot underestimate the paid promotion factor, and the wildly disproportionate upward move. It is best to estimate your own taste for risk, and whether you are willing to believe in the company’s longer-term potential.