Metatron Inc (OTCMKTS:MRNJ) is Acting Weird

The official Twitter profile of OTC Markets Group will tell you that, with more than $14 million in dollar volume, Metatron Inc (OTCMKTS:MRNJ) was among the most heavily traded Pink Tier stocks during yesterday’s session. All the other outlets that track the stock markets, including OTC Markets’ own website, however, say that during Wednesday’s session, there was only one trade that involved no more than three MRNJ shares. Welcome to the world of penny stocks.

One thing that we do know for sure is that MRNJ currently costs $4.50 per share and we might as well see if it really deserves this sort of valuation.

The company has gone through its fair share of business ideas, and it’s now focused on mobile applications, which, as you probably know, could be a really profitable sector. MRNJ announced the other day (through their WordPress.com blog, and not through a press release) that they have had some apps approved by Apple’s App Store which is undoubtedly good news. If the stock is to stay at $4.50, however, the new apps will need to be massive hits.

The current price would have been impossible without the 1 for 10,000 reverse split which took place about a month ago. This, in turn, means that the market cap shouldn’t be too high. In fact, according to the OTC Markets (we’ve already established that their information should be taken with a pinch of salt sometimes), it’s sitting at just under $280 thousand.

That may not sound like much, but considering the figures found in the latest report, it could be a bit of a stretch. Here’s what we mean:

• cash: $97 (that’s ninety-seven US dollars)
• current assets: $65,376
• current liabilities: $100,000
• quarterly revenues: $36,968
• quarterly net income: $9,715

Indeed, unlike a lot of the penny stocks out there, MRNJ is actually working at a profit, but the net income is tiny and the revenues appear to be shrinking. The laughable cash reserves and the fact that corporate news is announced through a free blog rather than a PR distribution service are not really helping MRNJ score credibility points, either.

That said, the reverse split from last month could mean that the members of the management team are trying to resuscitate the company and its stock. Is this enough to make it a viable investment? It’s up to you to decide.