Konared Corp (OTCMKTS:KRED) Gets Pumped
The stock of Konared Corp (OTCMKTS:KRED) has been climbing up the chart for three sessions now but yesterday it really caught the attention of the market. Investors shifted nearly 3.3 million shares while the monthly average stands at a little over 260 thousand. The last time KRED saw similar number of shares changing hands in a single day was way back in July 2015. After closing the session with a gain of 9.88% currently the stock is sitting at $0.0656 per share.
Was yesterday’s intense trading just a natural reaction towards the company as a result of investors getting more and more excited? Sadly, the answer to that question is a simple “no” – What caused the sudden burst of the traded volume was the start of a yet another paid pump. The last time we wrote about KRED was back in January when they made a similar pump-induced jump up the chart.
This time the biggest compensation was disclosed by the newsletter Stock Commander, who bagged the hefty sum of $95 thousand. They used some of that amount to hire the pumper Stock Rock and Roll for $15 thousand and Able Traders for $2500. The paid promotion is far from the only red flag, though.
The annual report that was filed last month revealed that KRED finished 2015 with:
• $149 thousand cash
• $645 thousand total current assets
• $463 thousand total current liabilities
• $635 thousand total sales
• $3.8 million net loss
The balance sheet is quite grim. Despite the reduction of the net loss by around $800 thousand the losses of the company are still massive. Especially when at the same time the annual revenues are almost half of what the company generated in 2014.
Since the start of 2016 KRED have been able to boost their financials by raising additional cash but they have done so at the expense of issuing millions of shares. 4.65 million shares were issued for aggregate proceeds of $231 thousand under the company’s 2015 Equity Line while another $171 thousand were raised in a private placement through the sale of 4.25 million units. Each unit had a price of $0.04 and contained 1 restricted common share and 1 warrant for the purchase of 1 restricted common share at $0.055. As a whole between January 1 and April 27 around 12 million fresh shares saw the light of day, bringing the total number of outstanding shares to 120 million.
A couple of months ago KRED launched their Cold Brew Coffee product line and apparently it has been quite a hit – in a PR from May 3 the company reported that sales have been growing in triple digits every month since the launch. According to the COO of the company the cold brew coffee could potentially add over 50% to the 2015 baseline revenues. However, the risks surrounding KRED remain significant and doing thorough due diligence before committing to any trades is strongly advised.
