True Drinks Holdings, Inc. (OTCMKTS:TRUU) Wipe Over A quarter Of Their Value
The stock of True Drinks Holdings, Inc. (OTCMKTS:TRUU) has been sinking like a stone even since the company filed its latest financial report on November 3. On the very next day the ticker began hurtling for the bottom of the chart and managed to obliterate close to 40% of its value in just three sessions. For a while it managed to find support around the 25 cents per share line but this week it has returned to crashing once more.
Yesterday the company suffered its biggest drop as it closed with a loss of 27% at $0.145. The fact that during the session investors traded the record amount of 4.2 million shares is equally as depressing. As a whole in less than a month TRUU’s stock has depreciated by 60%. Is there a chance for a reversal though?
As we said in our previous article although the latest quarter brought disappointing results compared to the same period last year TRUU’s operations are still encouraging, for a pennystock that is. At the end of September they had:
• $58 thousand cash
• $2.8 million total current assets
• $7 million total current liabilities
• $1 million net sales
• $1.6 million net loss
The limited cash position and the massive working capital deficit could cause some problems but the management team is positive that the revenues are only going to get bigger in the future.
Right before the start of today’s trading the CEO of the company issued an update to the shareholders in an attempt to prevent the stock from going even lower. In the PR Mr. Lance Leonard stated that November was their biggest month with over $1 million in sales. TRUU have been able to enter into new markets through new Direct Store Distributor partners while their Walmart sales have been steadily growing. The company even plans to add Target to their existing partners at some point next year. In September and October the cash reserves were strengthened significantly through the issuance of secured promissory notes for approximately $2 million.
The positive press release might be able to boost investors confidence in the stock but for a more prolonged recovery the company will need to show an improved balance sheet.
In early trading today the stock is sitting 20% in the green at $0.175 per share.
