Investors Are Yelling “TIMBER!” As Surna Inc. (OTCMKTS:SRNA) Crashes
A weekend of consideration did not kill Surna Inc. (OTCMKTS:SRNA)’s downward momentum. As a matter of fact, the very opposite is true – the ticker is had another horrible crash immediately after the market opened on Monday, and was down 26.32% by the time the final bell sounded the end of the day of trading.
This latest stumble could only have been the delayed but inevitable consequence of investors taking notice of the company’s achievements in the last reported quarter. Suffice it to say that the 10-Q for Q2, 2015 did not impress:
- Cash – $145 thousand
- Total Current Assets – $2 million
- Total Current Liabilities – $3.3 million
- Revenue – $1.7 million
- Net Loss – $977 thousand
Оnce said 10-Q hit the web, a couple of things became clear. The biggest problem in SRNA‘s case is not the fact that it has very little cash on hand, and that it is failing to make ends meet miserably. That’s just what business as usual for the more suspicious companies on the OTC Markets – and seeing as how SRNA has more than a few paid pumps to its name, SRNA is certainly suspicious.
No, what’s really horrifying is the fact that SRNA has more than $1.6 MILLION worth of convertible notes issued and outstanding.
Investors would do well to take that into consideration. It may well be that the stock’s poor performance in the last few days was due not only to the belated realization of SRNA‘s mediocrity, but to the dumping of large amounts of converted shares on the market as well.
This is why extra care should be taken and due diligence done by anyone wishing to trade SRNA stock in its present state.
