Is Cereplast, Inc. (OTCMKTS:CERP) Worth The Risk
Cereplast, Inc. (OTCMKTS:CERP)’s stock hasn’t been doing good since the beginning of this year. If you take a look in the 3 year chart you would notice that they are scarred by massive dumping from the start of 2013, which is driving the price further down. Even worse is the fact that their stock is getting pumped from time to time.
Most of the trade sessions in the chart of CERP are marked with red candles. Recently they showed some signs with some gain yesterday, however, it seems that the press releases work only for a day and it all goes to hell afterwards.
We might say that yesterday’s trade session went well for them with the biggest increase in price for the last couple of weeks. Their stock gained 14.94% on a volume which was a little over their average of 11 million, with a total of 16 million shares that switched hands. The price went from the previous day’s close of $0.0154 to $0.0177 with most of the trades taking place in the early hours.
With the increase in price per share the total trade value for the day came at $283 thousand. Let’s not forget that even with this low price the market cap of CERP is calculated at $7.9 million, but have you asked yourself what you’ll get for nearly 8 million dollars. Here are the numbers of prime interest from their latest financial report for your consideration.
- cash: $193 thousand
- total current assets: $7 million
- current liabilities: $20 million
- total liabilities: $30 million
- gross sales: $950 thousand
- net loss: $18 million
It seems like they are headed nowhere but down, but let us remind you something of importance. They were once listed in the NASDAQ, hence they were a profitable company that did good business. The situation that they are currently in shows that they have managed to ruin their business. We might add that companies with such issues are usually development stage companies that didn’t have a past of being profitable, but are rather looking for such a future. Quite the opposite of the situation here.
Of course you can play the game with some short-term invesments, but you have to be willing to take a risk and be sure to do a lot of due diligence.
Another risky play at the moment is Xumanii, Inc. f/k/a Medora Corp. (OTCMKTS:XUII), who have an incosistent movement and are depending on promotional campaigns. They started today’s session badly after 2 sessions in the green and are already 9.16% down from yesterday with a current price of $0.357.
On the other hand if you are looking at something more serious to invest in you can consider Affymax, Inc. (OTCMKTS:AFFY), who despite all of their problems, seem to be hell bent on resolving them. They are also quite well fitted financial-wise and are rising in price in the last 5 trade sessions, currently being nested at $1.78.
