Oroplata Resources Inc. (OTCBB:ORRP) Comes Tumbling Down
tags: ORRP
Oroplata Resources Inc. (OTCBB:ORRP) managed to more than double its market cap in its latest surge that started about a month ago – but judging by the last few trading sessions, its momentum is well and truly spent.
Yesterday’s trading saw the ticker crash 9.56% down the charts – and truth be told, that should have surprised no one. Why?
The reason for pessimism with regards to ORRP‘s chances of retaining its ground is largely based in the company’s achievements to date, its financial standing and overall state. The problems with all of these can neatly be summarized in the following numbers, which are an excerpt from the company’s latest financial report:
- Cash & total assets – $8 thousand
- Total Current Liabilities – $125 thousand
- No revenues ever
- Quarterly Net loss – $26 thousand
Those numbers more than fail to impress – they hint at appalling idleness. The discrepancy between said state and the company’s current market cap of almost $50 MILLION should be obvious.
The only silver lining that could be found in the current situation is that ORRP doesn’t seem to have a tendency towards rampant dilution, which is more often than not what spells the doom for OTC Markets companies’ investor value. ORRP‘s shares outstanding have remained a rock steady 40 million for quite some time now, and it doesn’t seem to have any toxic funding to its name – which is admirable.
Still, that is a small consolation, when the company in question has next to nothing but debt to its name. This is why it is no wonder that ORRP is currently falling. No, as a matter of fact, the only thing that is strange in this whole situation is that the ticker has not crashed harder and faster.
