Neutra Corp. (OTCMKTS:NTRR) Slashes a Fifth of Its Value
On Friday the stock of Neutra Corp. (OTCMKTS:NTRR) lost its footing and began hurtling towards the bottom of the chart. The crash was so severe that at the end of the day the company had lost more than a fifth of its value closing at 0.167 per share. The drop took place on a selling volume that surpassed the average for the company by nearly 4 times reaching 2 million shares. The last time NTRR saw such numbers was nearly four months ago at the start of July.
There certainly isn’t a shortage of reasons why the company has been unable to form a prolonged climb up the chart. Back in February NTRR acquired Diamond Anvil Designs with the goal to create their own vapor pen. Well, more than eight months later, on October 28, they announced that the plans for the first production run of the vapor pen have been finalized – not exactly a thrilling revelation.
The last financial results that were reported were equally as discouraging. Neutra finished the quarter ending July 31 with:
• $31 thousand in cash and total current assets!!!
• $441 thousand current liabilities
• NO revenue since inception
• $888 thousand net loss
But investors have a lot more to worry about apart from the terrible financials – the dilution of NTRR’s common stock is reaching alarming levels. At the end of January there were around 14 million outstanding shares. As of September 22 that number had more than doubled and now there were 31 million outstanding shares. The majority of the newly printed shares came into existence through the conversion of notes. Over 11 million shares issued at an average price of $0.026 per share while another 5 million shares were priced at $0.05. At the same time NTRR’s 52-week low stands at $0.09.
The fact that the CEO of the company resigned back in August should also be taken into consideration.
The millions of extremely cheap shares, the discouraging financials and the propensity for publishing fluff PRs (7 press releases just for October) that contain no substantial information make the company an extremely risky choice for investment. Use caution and do your own research before putting your money on the line.
