ScripsAmerica Inc. (OTCBB:SCRC) Starting A Climb Back To Lost Heights

ScripsAmerica Inc. (OTCBB:SCRC) did something extremely rare in the land of pennystocks. The company managed to sustain a remarkable climb from $0.14 to more than a dollar in just a month and a half. During this uptrend the stock had only 6 negative sessions making us all the more suspicious. Usually such an unnatural chart pattern is only possible if the stock is undergoing a considerable promotion most often than not involving the distribution of hard mailers.

But try as we might we couldn’t find anything of such sort during SCRC‘s run up the chart. Until last week that is, when a newsletter called Money Runners decided to latch onto the stock. Instead of receiving monetary compensation for their touting as is the norm they make profits by buying and selling the stock of the targeted company. Many investors blame them for the disastrous session that took place on Friday.

Back then, in the last 30 minutes right before the closing bell the ticker plummeted by 57% to barely stop at $0.41. Now with the pumper proclaiming to be moving on investors have regained confidence in the company and pushed the stock 25% up. Traded volume even surpassed the one from Friday and reached 1.6 million shares. Apparently the company is strong enough to garner such loyalty from its investors. In the latest quarterly they filed, SCRC posted the following:

• $3309 cash
• $2 million total current assets
• $1.9 million total current liabilities
• $287 thousand revenues
• $720 thousand net loss

The number aren’t enough to explain such enthusiasm. The company has extremely limited cash reserves if we could even call them that. They are relying predominantly on the issuance of convertible notes in order to secure the funds required for their operations. In a positive move not very popular among pennystocks, SCRC have decided to prepay some of the notes thus reducing the amount of dilution suffered by its shareholders.

The company is retaining its strong momentum thanks to its product RapiMed(R). The strides made towards its launch are considerable with the signing of manufacturing agreement and distribution both in North America and China. For now the launch is set to be at some point in September so until then most of the positive statements remain nothing but speculations. The stock, in fact, has been through several pumps in the past so investors should be careful.

Nuvilex Inc (OTCMKTS:NVLX) also surged upwards by 28% yesterday due to the successful acquisition of Bio Blue Bird AG. On the other hand Arch Therapeutics Inc (OTCBB:ARTH) tanked by losing a third of their value despite being supported by a $3 million pump.