Vega Biofuels Inc (OTCMKTS:VGPR) Bounces Yet Again

If you’ve been following Vega Biofuels Inc (OTCMKTS:VGPR) for a while, you’d know that it’s not the most consistent stock on the OTC Markets. A couple of weeks ago, for example, it bounced from the bottom and in a matter of two sessions, it managed to jump up by around 17%. Unfortunately, a few days later, all the gains were gone.

Right now, VGPR is on the move again. It hasn’t registered a red session since last week and after a 28% jump yesterday, it’s sitting at $0.005 per share. The volumes are substantial enough and 51% added in just three days of trading doesn’t seem bad at all. Still, the people who were buying the stock a couple of months ago probably aren’t particularly excited about the current price. Back in May, the ticker was sitting comfortably above the $0.01 per share mark. So, what are the odds of VGPR getting back to these levels?

Apparently, there are people who believe that this can happen. The posts on discussion boards are mostly optimistic and there’s a lot of Twitter buzz around VGPR. Apparently, the company also made a good presentation at the Weed Stock Conference recently which adds to the excitement.

Unfortunately, “excitement” is, once again, a key word and that’s rarely a good thing. After yesterday’s jump, VGPR‘s market cap according to OTC Markets’ website stands at more than $6.7 million. That may not sound like much, but it appears to be a bit of a stretch considering the financials found in the latest report. Here’s what VGPR had as of March 31:

• current assets: $31,913 in cash
• current liabilities: $184,977
• NO revenues since inception
• quarterly net loss: $36,431

Indeed, they did announce a huge purchase order recently, but the products they’ll sell will be manufactured in a plant that hasn’t been built yet. There have been no updates on the progress, either.

There are some more question marks around VGPR. On June 20, they tried to regain investors’ trust by saying that they will retire 90 million free trading shares. Normally, such an action should indeed improve a public company’s structure and it should give the price a boost. The case of VGPR, however, is a little bit different.

As you can see, the reaction from the market wasn’t all that great and when you take a closer look at the filings, you’ll see that they’ll need to retire a lot more stock if they are to make a significant improvement to the stock. At the very least, they’ll need to put the printing press on standby for a while.

According to the latest report, for example, the O/S count on March 31 stood at just under 950 million. The company’s OTC Market profile says that by May 1, it had grown to over 1.3 billion. Perhaps the worst thing of all is the fact that nobody knows who and why got the newly issued stock.

The incredible amount of if’s and when’s around VGPR certainly warrants some extra caution. Doing your own due diligence and considering all the risks is, as always, extremely important.

VGPR wasn’t the only stock to end yesterday’s session in the green. Audioeye Inc (OTCMKTS:AEYE) released their preliminary Q2 results shortly before the opening bell and this urged investors to jump in. Six and a half hours later, AEYE was sitting at $0.56 per share (70% above Tuesday’s close). Terra Tech Corp. (OTCMKTS:TRTC) also woke up and added around 3% to its value while shifting nearly $1.4 million worth of shares.