Neutra Corp. (OTC:NTRR) Drops Further Down
Gone are the days of excitement and hopes for the newly emerged medical marijuana sector. Many companies decided to join in lured by the hype and throngs of eager investors just waiting to buy their stock. One of those companies was Neutra Corp. (OTC:NTRR) and here is there story.
The switch of their business model to focus on cannabinoid-related products was immediately followed by a period of growth that for a brief moment on April 2 brought them to $6.50 per share. But now the ticker is back to its pre-marijuana levels after a plummet of another 31% to close at $1.30 yesterday.
The reason why investors became more and more pessimistic about NTRR is easy to see. The company announced and is still announcing grandiose plans for the future. First, on April 16 they revealed plans to implement an aggressive mergers and acquisitions strategy to gain market share and just 3 hours ago came the news about another plan of theirs – to broaden the scope of their MMJ initiative and make it international.
It is rather doubtful how they are going to implement either one of those when the financials they can rely on consist of the following:
- $7.5 thousand in cash, comprising total assets
- $182 thousand in current liabilities
- ZERO revenues since inception
- $282 thousand in net loss
This information is for the quarter ending October 31, 2012, mind you, so it is entirely possible that their situation has become worse since then. That is exactly way we are eagerly waiting for the timely filing of their 10-k report.
What is happening to NTRR is not an isolated occurrence as the whole sector is losing steam. Even Medical Marijuana, Inc. (PINK:MJNA), arguably the biggest company operating in it, has been slowly sliding downwards and is currently sitting at $0.244. NTRR is still relatively high-priced so it may continue falling for some time. Before committing to anything you should always do your due diligence in order to avoid any unpleasant surprises.
