KonaRed Corp. (OTCBB:KRED) Ends the Week with a Small Recovery
Last Friday the stock of KonaRed Corp. (OTCBB:KRED) showed that it had some strength left after it closed the day 6% up at $0.70 per share. Still the gain was negligible when compared to the massive corrections from the previous sessions. In just three days KRED bombed from $1.03 to just 66 cents, a loss of nearly 36%. Investors are reluctant to return to the stock resulting in a trade volume of 1.2 million shares while the dollar value for the day couldn’t reach $900 thousand.
Having crashed for a second time it will be hard even for a pump with a budget of $2.3 million to cause another major bounce of the stock. They are not giving up though – the hard mailer is still being distributed among investors and the landing page remains active. In it they gave KRED an initial price target of $4 per share, a sum quite disconnected from the reality of the company.
At the end of September KRED could rely on the following financials:
- $119 thousand cash
- $629 thousand total current assets
- $1.2 million total current liabilities
- $738 thousand revenues
- $266 thousand net loss
The company has real product and is able to generate respectable revenues. They are still not profitable but the recent purchase agreement with Lincoln Park LLC will give them the required funds to continue with their business plan. Under the terms of the deal KRED can sell up to $12 million worth of equity over the period of 30 months without offering Lincoln any staggering discounts in share price.
KRED certainly have potential but the ongoing pump campaign turns them into a risky choice for investment. Use caution and be sure to take into account the current volatility of the stock.
On Friday the latest addition to the marijuana pennystocks – Cyber Kiosk Solutions, Inc. (OTCMKTS:CYBK) continued to climb higher with a gain of 26% closing at 24 cents per share.
