Nutrastar International Inc. (OTCBB:NUIN) Finally Noticed by Investors
Since 2011 Nutrastar International Inc. (OTCBB:NUIN) has been sliding down the chart dropping from price ranges above $3 per share to less than a dollar for most of 2013. Such a prolonged negative trend can be easily associated with companies that are buried in debt, have no real operations or those who have been putting their shareholders through constant dilution. But one look at the financials of NUIN reveals that such scenarios couldn’t be further from the truth.
Back in November when the company filed its quarterly report for the period ending September 30, they revealed record financial results:
- $93 million cash
- $96 million total current assets
- $5.3 million total current liabilities
- $10.9 million quarterly revenue
- $5.7 million quarterly net income
So why has their stock been going down for so long? Well, there are a couple of reasons for that. First and foremost, NUIN came into existence after a reverse-merger and its operations are based in China which immediately puts most pennystock traders on their guard. NUIN generates most of its revenues through the production of Cordyceps, a highly valued ingredient in traditional Chinese medicine.
Now, though, things are starting to pick up speed. In less than three months NUIN has recovered almost all of its lost positions. Interest in the company has also been building up and yesterday the record number of 340 thousand shares got traded on the market. As a result NUIN added nearly 50% to its value closing the day at $2.99.
One of the major reasons for the sudden reversal is the involvement of Accretive Capital Partners, a private investment fund founded and operated by Mr. Richard Fearon. On December 26 NUIN announced that through a series of private transactions Accretive Capital has nearly doubled its stake at the company by purchasing 827 thousand common shares. In order to further boost investors confidence in the company the CEO Ms. Lianyun Han also decreased her voting power from 52.7% to 47.2%.
Results didn’t take too long. The company got featured into a couple of articles around the web and last week two reports about it were published on Seeking Alpha. NUIN is definitely not among the cheapest investment options and thus any trades should be preceded by sufficient due diligence. In early trading today the stock is still going strong with another 19% added to its value currently trading at $3.60.
The marijuana industry that has taken the market by storm in the last couple of weeks has managed to recover and the stocks are surging up. It seems that Growlife, Inc. (OTCBB:PHOT) will finally get a breath of fresh air after five consecutive sessions in the red. At the moment the stock is sitting at $0.215 or 13% above its previous close. Medical Marijuana, Inc. (OTCMKTS:MJNA) is nearly 5% up sitting at $0.204.
