Rainbow Coral Corp (OTCMKTS:RBCC) Drops Further Down The Charts

[[tagnumber 0]][[tagnumber 1]]The first half of the year was rather uneventful for the stock of Rainbow Coral Corp (OTCMKTS:RBCC). The ticker slowly slid below the $1 per share mark and reached 50 cents by the end of June, while being highly illiquid.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Lately, however, the company has gained quite the attention and has risen to impressive price ranges. It reached a high of $7.65 per share in last Friday’s trading, but slid a bit lower for a close of the week at $6.28. The reason for the climb is the claims that the company has a “flagship” product called Naltrexone that is used for the treatment of alcohol and opioid dependence.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Meanwhile, the true story is that [[tagnumber 10]]RBCC[[tagnumber 11]] had no hand in the development of the drug and has merely expressed intent to distribute it throughout the U.S. and Canada. In reality, [[tagnumber 10]]RBCC[[tagnumber 11]] owns a fish store in Venice, Florida and has some pretty horrifying numbers in its 10–K report for the period ended March 31, 2015.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 17]] [[tagnumber 18]]cash: $5,180[[tagnumber 19]] [[tagnumber 18]]current assets: $7,414[[tagnumber 19]] [[tagnumber 18]]current liabilities: $453,632[[tagnumber 19]] [[tagnumber 18]]yearly revenues: $128,133[[tagnumber 19]] [[tagnumber 18]]yearly net loss: $990,233[[tagnumber 19]] [[tagnumber 28]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Further concern arises when you look at one of the other reasons for which [[tagnumber 10]]RBCC[[tagnumber 11]] was able to climb to such heights. Back in the end of May the company executed a 1 for 100 reverse split which reduced the share count significantly. In the same time, most of the debt of the company could be turned into shares at a fixed price which ranged from $0.007 to $0.04 per share.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]On June 1, when the company was still hovering around the 50 cent per share mark some noteholders received 6,513,355 shares of common stock at a conversion price of $0.02 per share. A quick look at the OTC marketplace of the company reveals that it had a total of 3 shareholders of record as of July 14, 2015.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This means that a select group of a few people can make massive profits while retail shareholders buy highly overpriced shares of a fish retailer claiming to be a biotech. This would explain the last two disastrous sessions which pushed [[tagnumber 10]]RBCC[[tagnumber 11]] to $2.85 per share after yesterday’s 21.92% drop.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The profits that can be made by those lucky shareholders are impressively large even at those price levels so we would advise you to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]