Konared Corp (OTCMKTS:KRED) Crashes Despite The Paid Pump

Last Friday the stock of Konared Corp (OTCMKTS:KRED) hit a high of $0.183 per share. By the time of the closing bell, however, the ticker had dropped nearly 6% in the red for a close at $0.165. Since then the downtrend has only gotten stronger with the stock suffering a severe crash during yesterday’s trading.

KRED opened at $0.16 but almost immediately plunged towards the bottom of the chart. When the closing bel rang signaling the end of the trading day the stock had slashed over 16% of its value and was sitting at $0.1301. It seems that the negative momentum is so strong that even the new PR about the launch of the first out of the three planned Performance Powder Formulas published by the company before the start of the session failed to have any impact on the daily performance.

Compared to the majority of the other pennystocks KRED is a far more stable venture. They finished the first quarter of the year with:

• $240 thousand cash
• $951 thousand total current assets
• $943 thousand total current liabilities
• $239 thousand net revenues
• $544 thousand net loss

In addition the company can rely on a $10,250,000 purchase agreement with Lincoln Park Capital Fund, LLC. under the terms of which KRED can sell shares to Lincoln Park with the purchase price being based on the prevailing market price without featuring any fixed discount. In a recent letter to the shareholders KRED also outlined their plans to diversify their revenue streams. On July 16 they announced their expansion into the Japanese market.

Approaching the stock, however, still requires the use of caution. KRED’s revenues are going down with the ones from the latest quarterly showing a 41.6% decline from the revenues for the same period last year.

Furthermore the stock has been often touted by paid pumpers. Last year a widespread $2.3 million paid promotion was launched for the ticker while for the past seven days numerous paid newsletters have been issuing overly-optimistic email alerts in an attempt to create as much artificial hype as possible. Yesterday three new emails were sent flying by Penny Pick Finders who bagged $14 000 while PST Alerts and Buzz Stocks expect to receive $5000 for their services.