Urban Barns Foods, Inc. (PINK:URBF) Pump Over, Stock Deflated
Yesterday Urban Barns Foods, Inc. (PINK:URBF) closed down over 30% and settled at $0.055. The promoters who pumped URBF over the last few days have gone completely silent and the stock followed suit, quieting down on fading volume and price.
The last round of pumps for Urban Barns was launched over the last weekend, on January 13. Among the promoters was also Awesome Stocks, who bagged $30 thousand for their advertising effort. Sadly, the only real time window investors had to make a quick buck off the promotional hype was Monday. Following that, URBF closed down two consecutive days, wiping gains in the process and closing a cent below pre-promotional levels yesterday.
We alerted investors about the pump campaign as early as Monday. Hopefully, our readers were not among the people who bought the Monday spike and the subsequent session, at about $0.10 per share, as those would be sitting on losses of roughly 50% right now.
URBF, a company that claims to have a better alternative to greenhouse leafy greens production – a patent-pending project named Cubic Farming, is launching its first production facilities today, as announced earlier. Investors didn’t seem too fascinated with that fact as the stock deflated minutes after the opening bell. Along with pumpers going silent, the company has not come up with any new press releases or official filings.
URBF is a startup that has not yet generated any revenues and has the following numbers to show in its latest official report for the quarter ended October 2012:
- $239 thousand in cash
- $308 thousand in liabilities
- $126 thousand quarterly net loss
- zero revenue since inception
The company is in the habit of issuing large amounts of shares to cover convertible notes, for proceeds and for services rendered. The same 10-Q report details the issuing of over 80 million shares in that quarter alone.
Promoters Awesome Stocks previously touted penny stock companies that cooled down and dropped in a similar or even worse fashion than URBF once the pumping was over. One example of the outcome of a pump is Liberty Gold Corp. (OTC:LBGO). When Awesome Stocks, among other promoters, halted their round of promos, the stock went downhill and is now trading at about 25% of the pump highs.
Traders would do well to duly check all available information on any given stock before investing in it, especially if it’s a promoted penny stock. Do your own research and don’t trade on hype alone!
