PURE Bioscioence (OTCMKTS:PURE) Surges Before The Weekend
PURE Bioscience (OTCMKTS:PURE) was sliding down the charts throughout November, which wasn’t that surprising considering the lack of optimistic press releases. After a few sessions in this month that brought PURE‘s price as low as $1.15 per share, however, things are changing.
The main reason for that is the news coming in from the company and a seemingly assuring review that was posted on Seeking Alpha. The review in question was uploaded on December 5 and led to an impressive 2 day run in which the company stock gained a total of 29% in value.
While the ticker moved 14.62% up, going from $1.30 to $1.49 in Friday’s session we saw more than 5 times the average volume of traded stock. The total amount of shares that switched hands during the session came at 275 thousand and generated $396 thousand in dollar volume, the highest in over a month.
The company is not staying behind in aiding the effort and announced a conference call that is scheduled for 2:00 PM Pacific time on Thursday, December 12.2013 in which they will discuss their Q1 results. The last annual report from PURE, covering the period ended July 31, 2013 wasn’t really exciting so everyone is hoping for better results.
The main problem is that over the course of just 1 year the company has burned through 96% of its cash reserves and had $32 thousand in the bank as per the 10-K filing. The revenues that PURE registered were almost the same as the previous year’s, at $820 thousand, however, the net loss also remained nearly the same at a whopping $7.6 million.
Despite still running up in today’s session we might see a serious correction in the price of PURE‘s stock very soon. The most probable reason for such a thing to happen would be when people realize that PURE has made $5 million in revenues over the past 10 years, while in the same time having a cumulative net loss of a massive $70 million since their inception some 17 years ago.
Another red flag is that PURE‘s annual net losses are constantly 10 times bigger than the generated revenues and are mainly due to selling, general and administrative costs. We don’t know how much these people get paid, but it sure is a lot more than the work they put in.
In any case, be sure to do a lot of due diligence and weigh out the risks if you have any thoughts of jumping in PURE‘s bandwagon.
Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) made an impressive jump just before the weekend with a massive 50% gain in price. Trio Resources, Inc. (OTCBB:TRII) on the other hand, had another dreadful session in which they lost 30% on a huge amount of traded stock.
