Marani Brands, Inc. (OTCMKTS:MRIB) Falters

Yesterday’s session put an end to the remarkable climb that the stock of Marani Brands, Inc. (OTCMKTSL:MRIB) was making. In four consecutive sessions MRIB doubled its value rushing from $0.007 to more than $0.016. In early trading yesterday the momentum was still strong enough for MRIB to open with a gap up at $0.0187 and surge even higher to a new 52-week high of $0.0229.

But such high price ranges proved to be too much for the company to support. Investors decided that it is time to start taking profits and at the end of the day MRIB had dropped 12% below its previous close trading at $0.014. The pullback created an opportunity for all those who sold their position in the morning to reenter which brought the traded shares to their second highest number of 59 million. The total dollar value though was the highest in the recent history of the company with MRIB breaking through $1 million.

As we said the company attracts attention mainly through its $40 million distribution agreement to deliver its Marani vodka to Brazil over a period of 5 years. Prior to its recent resurgence in September MRIB had disappeared for more than two years with no PRs or financial reports. At the start of November they finally submitted a report for the quarter ending September 30, or right before they became active again. If you take a look at one of our previous articles you will see that their financial situation back then was rather dismal with exactly $564 in cash.

The company hasn’t officially revealed any credit lines or other sources of fresh funds but apparently their financials have improved so much that MRIB is sponsoring a boat race now. Not only that but yesterday the management of the company announced that the number of authorized shares has been decreased from 1 billion to 700 million and that they will not be looking for any funding sources that will dilute the share structure. Such a decision is not something often seen in pennyland and we are quite curious how the company will manage to do that.

MRIB remains a risky bet to play. Be sure to carefully consider all the red flags around them and decide on appropriate time horizons for your investment in order to minimize any possible losses. The other company that is currently being pushed up mainly by hype – Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX) had a much more positive session and climbed another 4$ up to end the day at $1.14. On the other hand shareholders of Makism 3D Corp (OTCBB:MDDD) got devastated when the stock of the company had a second session with a 40% loss out of the last three. Now the company is sitting at $0.44 well below the initial price when the pump for them started.