Uluru Inc (OTCMKTS:ULUR) Delivers a Nasty Surprise
Some of you might find this hard to believe, but Uluru Inc (OTCMKTS:ULUR) was once listed on the NYSE Amex exchange. Unfortunately, that was a very long time ago.
The company was having problems keeping up with the strict regulations from the very beginning. The management team tried time and again to fix the issues, but their success was limited and eventually, they realized that attempting to stay on the bigger board is just a waste of time and resources. In 2012, the stock was voluntarily de-listed and ULUR began trading on the OTC Markets.
Technically speaking, penny stock investors should be a lot easier to impress, but ULUR has been struggling on that front as well. On the whole, volumes have been miniscule and the stock has been slowly but surely sinking towards the bottom. After yesterday’s session, it’s going to have even more problems attracting investors.
That’s due to the latest 10-Q which came out a few minutes after Monday’s closing bell. It covers the quarter ended September 30 and the most important figures in it looks like this:
- cash: $2,289
- current assets: $1,971,855
- current liabilities: $3,475,899
- quarterly revenues: $24,799
- quarterly net loss: $866,090
The 10-Q looks pretty bad as it is, but the real shock comes when you compare it to its predecessors. ULUR‘s revenues are a massive 90% down from the ones logged during Q2, and on a year-over-year basis, the drop sits at 92%.
As you might imagine, investors were not thrilled by the horrific results. In a matter of six and a half hours, ULUR lost nearly 38% of its value which brought it to a close of just under $0.14 per share. The dollar volume at the end of the day sat at $203 thousand and thanks to the increased activity, the ticker also managed to record a new 52-week low of less than $0.09.
The rather huge sell-off is somewhat understandable in light of the massive revenue drop. What is more interesting now is whether ULUR has what it takes to bounce and claw back some lost ground.
Well, the management team said in the 10-Q that the huge sales flop during Q3 was due to the timing of purchase orders placed by their international distributors. Mr. Kerry Gray, ULUR‘s CEO, admitted in a conference call from yesterday that he and his colleagues might have underestimated the problem at the time, but he was still pretty adamant that he is optimistic about the future.
Indeed, back in May, ULUR started the process of acquiring one of the aforementioned international distributors. In August, they also completed a $1.5 million private placement which should help them see the deal through. If they manage to do it (they expect to successfully complete it before the end of the year), they might be able to turn the Q3 sales fiasco into nothing more than a bad memory.
Even if they do, however, the stock will still be risky. Especially considering the appalling liquidity problems it has experienced over the years.
