Is Nutranomics, Inc. f/k/a Buka Ventures Inc (OTCBB:NNRX) About To Get Pumped?
Until not that long ago, Nutranomics, Inc. went under the name Buka Ventures Inc (OTCBB:NNRX) and it’s fair to say that things were quite a bit different back then. The company was headquartered in Fiji and it was a mineral exploration venture with plans on digging gold and silver out of the ground and absolutely no resources to do it.
When we say that they had “no resources”, we mean it. The latest financial statement was published on September 16 and it covers the three months that ended on July 31. Here are the figures you can find in it:
- cash: $1,439
- current assets: $3,939
- current liabilities: $2,539
- no revenue since inception
- quarterly net loss: $3,680
These financials hardly inspire any confidence, but luckily, quite a lot of things have changed since the 10-Q came out.
A Utah-based nutraceutical company called Health Education Corporation dba Nutranomics, Inc. decided that their chances of success will be bigger if they become a publicly traded venture. Some negotiations were carried out and five days ago, the merger became a fact. As part of the deal, Buka Ventures issued a little over 25 million shares, the former management team canceled roughly the same amount of stock and Nutranomics officially became an enterprise traded on the OTC Markets.
Unfortunately, we’ve no way of knowing for sure how well the former privately-held company has been doing over the years, but the press release informing us of the acquisition tells us that the revenue figure for the twelve months ended on July 31 hovers around the $3 million mark.
Traders seem really excited about this fact and we can see why. In many ways, investing in NNRX at this point looks like hitting the proverbial ground running – you have the chance to put your money in a penny stock occupying a really interesting business sector and yet, you won’t need to wait for years until the development stage is over. Probably that’s why more than 8 million shares changed hands during yesterday’s session resulting in 36% in daily gains and a dollar volume of around $7.8 million.
People who bought some NNRX stock are probably quite happy with their decision to jump in while the price is still relatively low and they are most likely expecting to see some consistent growth in the future. Are things really so simple, though?
Of course not. For one, generating revenues can, in no way be indicative of the company’s profitability and we’ve absolutely no idea what the balance sheet will look like when it comes out. Unfortunately, we’ll need to wait for quite a bit longer until we get more information about the actual financial situation but if it turns out that it’s not that brilliant, the price will probably take a plunge. Any other, more immediate dangers?
Well, we can’t help but think that NNRX looks like a stock promotion in the making. The name is new and so is the business model, the sector is quite popular among penny stock investors and the revenue generation has already started (according to the press releases). Rumors around the message boards suggest that a pump (probably quite a big one) will start soon and even Penny Stock Forever alerted their subscribers to keep a watchful eye on the ticker since, according to them, quite a lot of things indicate a “huge marketing campaign“. Time will tell if the pumpers really are going to try and hype NNRX, but the possibility of this happening is certainly there which, in turn raises the risks even higher. Make sure you have this in mind when considering all your options.
