Sack Lunch Productions Inc (OTCMKTS:SAKL) Moves Up
After logging two sessions of corrections in a row the stock of Sack Lunch Productions Inc (OTCMKTS:SAKL) reversed its direction during yesterday’s trading. On a volume of 1.23 million traded shares, which more than doubles the monthly average, the ticker was able to add over 4.6% to its value, closing at $0.1405 per share. During the session SAKL also registered a new 52-week high.
Compared to the start of the year the stock of the company has appreciated significantly rising up from a little over four cents. And it is not that hard to find why investors have been showing such support for the ticker. SAKL has been reporting impressive revenue growth and it has even stated that the initially projected revenues of $18 million for 2016 could be surpassed.
After a significant delay last Thursday SAKL finally submitted their quarterly report covering the first three months of the year so let’s see for ourselves what they had in terms of financials as of March 31, 2016:
• $797 thousand cash
• $3.7 million total current assets
• $7.97 million total current liabilities
• $1.3 million total revenue
• $1.56 million net loss
Compared to the same period last year the revenues generated by the company are over 43% higher. This is truly an amazing achievement but the balance sheet also contains some rather alarming red flags – both the loss from operations and the net loss have increased by around three times from what they were at the end of March, 2015.
Things look much better, though, if you take into account the deferred revenues of the company. During the three months covered by the report SAKL registered over $2.3 million in deferred revenue while for April they announced around $1.79 million in total sales. This revenue comes from ticket sales and will be realized as the company starts holding its various events in the coming summer months.
SAKL remains a pennystock, however, and as such using caution is strongly advised. The outstanding shares of the company have been steadily creeping up and quite a lot of fresh shares have seen the light of day as a conversion of Series C preferred shares. On January 21 41,565 preferred C shares were converted at $0.045 into 4.6 million common shares while on March 8 11,776 preferred C shares were turned into 3.5 million common shares. The subsequent events section of the report reveals that even more conversions took place in May with 1.6 million common shares being issued at around $0.077 followed by 6.5 million shares priced at $0.13 each. As of May 31 SAKL had 141 million outstanding shares but according to investors who claim to have contacted the transfer agent of the company as of yesterday there were 148 million outstanding shares.
When contemplating whether to put any money into the stock or not you shouldn’t overlook the fact that just until recently SAKL were being targeted by a paid pump. Not to mention that the company itself has decided to pay $10 thousand and 450 thousand restricted shares to SmallCap Network for market awareness and advertising services.
