Urban Barns Foods, Inc. (OTCMKTS:URBF)’s Jump Didn’t Last
Urban Barns Foods, Inc. (OTCMKTS:URBF) exploded 130.77% up the charts on Wednesday, but by the time yesterday’s final bell arrested its descent, it had already lost 36.67% of its gains. So what gives?
Last time we checked on URBF, it was because it had been on the receiving end of a paid pump. Back then, it didn’t look like anything short of a tout could get investors interested in its stock, even momentarily. Sadly, not a lot seems to have changed since then.
The last two sessions have seen about half a million dollars worth of URBF stock change hands – and that’s an all-time record. Unfortunately for people who want to make money trading it, the ticker has been almost illiquid for some time now.
It is unclear exactly what managed to spike investor interest two days ago, since there appear to be no paid pumps going on this time. However, one thing is pretty clear – whatever the reason for all the excitement was, it is gone now.
And with nothing to cause hype, URBF literally has nothing going for it.
Its financials look rather mediocre:
- Cash – $40 thousand
- Total current assets – $243, most of which is in the form of accounts receivable
- Quarterly revenue – $17 thousand
- Quarterly gross loss – $1.5 thousand
- Quarterly net loss – $574 thousand
To top that off, URBF has a ton of convertible notes with provisions that allow the noteholders to transform that debt into shares of the company’s common or preferred stock at discounts 35% of the market price in the last two weeks or so.
Under the circumstances, it really isn’t surprising that URBF‘s ascent didn’t last – just like it wouldn’t be surprising to see it plunge right back down to triple zero obscurity before long.
