Neutra Corp. (OTC:NTRR) Corrects by a Third
Difficult times prove people, and they might also prove penny stocks. After a day of selling, Neutra Corp. (OTC:NTRR) will have a chance to show its mettle and prove it still has the stuff that took it up from 12 cents to $4.50 in mere days. The ticker slid down 31% to $3.20, as investors probably chose to cash in, like they did in mid-March. Since NTRR is already priced quite above medical marijuana stocks, we still don’t know if new investors would dare enter at such a high price. 
It is strange that NTRR has not landed as a promoted ticker in our database, and with its current prices it may be out of the range of most promoters. But there is still a chance of renewed interest if losses become deep enough to ignite bargain-seeking investors.
The most recent news about NTRR concern the establishment of a medical cannabis subsidiary. To perform the operations of such an entity, the company should rely on somehow limited financial resources:
- $7,580 cash
- $189,247 total liabilities
- Zero revenues
- $98,077 net loss
For some companies, the recent legalization of marijuana has created a high profile and an increase in revenues, but the setup costs are still lying heavily on their reports. The likes of Growlife, Inc. (OTC:PHOT) and Medical Marijuana, Inc. (OTC:MJNA) are showing some shyness in their graphs as they struggle with the fallout from the last period of promotions. So there is hope for NTRR to stay visible for a while longer, citing expansion, yet at the current moment the stock price seems far from sustainable.
NTRR repeats the story of another newcomer to the cannabis dispensary industry, SK3 Group, Inc. (OTC:SKTO). The ticker exploded from triple zeroes and reached 8 cents, a growth even more impressive, but also more volatile. The greatest spike in SKTO happened after the company announced the inclusion of medical marijuana into its business model, and was boosted by a paid promotional campaign.
If novelty attracts you, keep in mind that it carries a disproportionate amount of risk, especially with companies taking up a new business model and touting it as a guaranteed breakthrough. Do your own research and mark out the acceptable losses before joining the new “green spring” of medical cannabis companies.
