Rainbow Coral Corp (OTCMKTS:RBCC) Takes A Breather

[[tagnumber 0]][[tagnumber 1]]After an explosive performance that led Rainbow Coral Corp (OTCMKTS:RBCC) to prizes above $7 per share we saw the ticker plummet down the charts. It attempted a recovery in the middle of August, but the upward movement lasted for five sessions and we saw [[tagnumber 2]]RBCC[[tagnumber 3]] return to its downward slide with even more determination.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]Going down we saw [[tagnumber 2]]RBCC[[tagnumber 3]] reach a new 52–week low of $0.48 per share in Tuesday’s session, after the ticker los some 15.79% of its value. The lows that the company stock reached, however, were not very surprising, especially when you consider the results it had to show for the second quarter of the year.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 13]] [[tagnumber 14]]cash: $2,740[[tagnumber 15]] [[tagnumber 14]]current assets: $4,524[[tagnumber 15]] [[tagnumber 14]]current liabilities: $517,798[[tagnumber 15]] [[tagnumber 14]]quarterly revenues: $27,683[[tagnumber 15]] [[tagnumber 14]]quarterly net loss: $136,929[[tagnumber 15]] [[tagnumber 24]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]Those are some pretty disastrous numbers, but they are not the biggest red flag that a little due diligence should raise. [[tagnumber 2]]RBCC[[tagnumber 3]] had the opportunity to make such an incredible upward run a few months ago because it exercised a 1 for 100 reverse split back in May. Unfortunately, the management didn’t think that it was necessary to alter the terms of the convertible notes that they previously issued.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]This led to the issuance of [[tagnumber 2]]8,402,094 shares[[tagnumber 3]] of [[tagnumber 2]]RBCC[[tagnumber 3]] common stock to be issued as [[tagnumber 2]]a conversion of just $167,982[[tagnumber 3]]. A quick calculation shows that the [[tagnumber 2]]price per share at which the stock was issued was $0.02[[tagnumber 3]].[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]Meanwhile, the company’s press releases don’t suggest that [[tagnumber 2]]RBCC[[tagnumber 3]] is making any progress. All they talk about is “considering future moves”, “weighing options” and “taking notes”. The latest press release is also rather fluffy and it centers on a manuscript concerning 3D bioprinting and cell culture screenings that was published in the journal Scientific Reports. The thing is that the piece was co–authored by the CSO of n3D, a partner of [[tagnumber 2]]RBCC.[[tagnumber 3]][[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]The thing is that the PR actually worked and stopped the fall of the company stock. Even more, it managed to provide grounds for a gain of 14.58% and [[tagnumber 2]]RBCC[[tagnumber 3]] closed yesterday’s session with a price of $0.55 while a total of 269 thousand traded shares generated $138 thousand in daily dollar volume.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]Only time will tell if RBCC will be able to regain more of the lost value. Meanwhile, you should be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 4]]