Rainbow Coral Corp (OTCMKTS:RBCC) Appears Unstoppable
Rainbow Coral Corp (OTCMKTS:RBCC) tumbled from more than $0.04 in November 2014 to less than a penny in May 2015. It then went through a 1 for 100 reverse split and although its performance was pretty uneventful at first, thanks to a few uninformative press releases, it put on quite a show last month.
A few short sessions were enough for the ticker to go from just over $2 per share all the way to a massive $6.28. Sadly, it stalled at these levels and the fall that ensued was rather painful. Exactly four weeks after closing at almost $6.30, RBCC bottomed out at $1.35 per share.
All in all, were not talking about the best performing penny stock here.
About fifteen minutes after Wednesday’s closing bell, the company filed its 10-Q for the period ended June 30. Here’s a summary of the most important financials:
- cash: $2,740
- current assets: $4,524
- current liabilities: $517,798
- quarterly revenues: $27,683
- quarterly net loss: $136,929
The revenues have dropped by about 20% on a year-over-year basis and although the corporate website would have you believe that RBCC is a biotech company, the sales are actually coming from aquarium supplies. We reckon that the rest of the figures in the balance sheet don’t require any further comments. Neither do the press releases which appear to be just as frequent and fluffy as ever.
But how are investors reacting to the shocking 10-Q and the torrent of meaningless announcements?
Quite positively, actually. RBCC hasn’t registered a red session since last Wednesday and yesterday, after adding another 11%, it stopped at $2.50 per share. While we can’t be sure what, investors are finding something to like about RBCC and the growing volume means that more and more people are putting their money on the line.
Those people will do good to bear in mind that during the quarter ended June 30, RBCC issued exactly 7,193,344 shares at $0.02 per share as a conversion of notes. At the end of June, there was more than $320 thousand worth of debt convertible at fixed prices ranging from $0.007 to $0.25, and between July 7 and August 11, $24,115 of it was turned into 1,208,750 shares of common stock.
You might have calculated already that a grand total of 8,402,094 shares, or about 96% of the total O/S count, were issued at $0.02 per share. You should now be able to decide for yourself whether paying $2.50 for the same exact shares really is worth it.
