Urban Barns Foods Inc (OTCMKTS:URBF) is Still Not Done
Yesterday, a message board user submitted an optimistic post about Urban Barns Foods Inc (OTCMKTS:URBF). He said that he has contacted the company and he has been promised a few things, one of which is a press release before the end of the week. This contributed to the overall excitement around the stock. In a matter of six and a half hours, URBF managed to gain no less than 47% and it finished the day at $0.0031.
The same message board user also posted an optimistic opinion about Brainybrawn Inc (OTCMKTS:BRNW). Unfortunately, that didn’t go quite as well. In fact, despite his enthusiasm, BRNW wiped out nearly 70% and it plunged back in triple-zero land.
The question is simple really: Is URBF, like BRNW, running simply because of the hype, or is there something more to it than that?
Well, URBF‘s press releases have all been put up by the company itself which is more than can be said about BRNW. The stock is not being helped by a press release, however. It’s going up because it’s received some media coverage recently. In the interviews, Horst Hueniken, URBF‘s recently appointed CEO, showcased a brand new growing machine and said that it will help the company become cash flow positive.
Shareholders are keeping their fingers and toes crossed that he’s right which is hardly a surprise considering the fact that so far, there’s been nothing but disappointment for them. A point hammered home by the latest 10-Q:
- cash: $40,931
- current assets: $243,239
- current liabilities: $1,019,808
- quarterly revenues: $17,052
- quarterly net loss: $574,030
The financials are not really confidence-inspiring and people are hoping that this will change in the near future. The thing is, they’ll need to wait before they can see whether URBF has what it takes to solve all the issues.
The interviews in question were filmed recently and in them, the aforementioned growing machine still wasn’t operational which means that it will not have any effect on the 10-K for the latest fiscal year which, by the way, is supposed to come out any moment now.
This means that people will be forced to wait for the next quarterly report and that won’t be out until almost two months from now. That could be an awful lot of time in Pennyland. Especially when toxic financing is involved. And as we mentioned at the beginning of the week, URBF has a significant amount of toxic debt on its books.
Investors aren’t too bothered about this for the time being. In fact, in early trading today, the ticker seems to be stronger than ever. About an hour into the session, URBF is sitting at a hair under $0.005 – 54% in the green.
