Solar Energy Initiatives, Inc. (OTCMKTS:SNRY) Takes a Step Back
After a crazy run that saw Solar Energy Initiatives, Inc. (OTCMKTS:SNRY) double in price in a single session last Thursday, then double on the new price over the first two sessions of this week, that rapid climb was reversed in yesterday’s short market session, where SNRY dropped 7%.
The initial surge of 100% last Thursday came after a prolonged period of time that the company spend in triple-zero land. The original trigger was a press release issued by SNRY concerning the company providing photovoltaic units for California medical marijuana growers. It seems the hype around the green leaf is so widespread these days that any company that drops the M-bomb in a press release can cause a surge of interest, despite the overall situation of the business in question.
The situation of SNRY in particular is not exactly rosy. Here is what the company reported as of April 30 this year:
- $12 thousand in cash
- $2.4 million in current liabilities
- zero revenues
- $388 thousand in quarterly net loss, $17 million in accumulated deficit
In a previous article we took a brief look at current SNRY CEO Mr. Michael Gelmon’s track record with previous OTC companies where he mostly served as CEO, as well as the total failure those enterprises turned out to be. This list includes Banyan Corp. (OTCMKTS:BNYN), Protocall Technologies, Inc. (OTCMKTS:PCLI), PaperFree Medical Solutions, Inc. (OTCMKTS:PFMS). What those businesses have in common is also the bitter pill of toxic financing which eventually drove them to their current status of around $0.0001 per share, and in the Pink No Information tier.
SNRY‘s own filings contain the name of Asher Enterprises, Inc. – an infamous entity that provided heavily toxic financing for other OTC companies in the past. Combining that with the fact that SNRY recently assumed a fair additional amount of convertible debt from a restaurant business, and then approved a twofold increase of their own authorized shares, the situation leaves very little to the imagination of traders and gives little hope that this latest venture of Mr. Gelmon will be a success.
Other stocks that backtracked down the charts in yesterday’s short session were Affymax, Inc. (OTCMKTS:AFFY) who slipped by nearly 6%, and American Graphite Technologies, Inc. (OTCBB:AGIN) who dropped another 8% to log their fourth red day in a row.
