Agrieuro Corp (OTCBB:EURI) Accelerates Its Drop
Just a few sessions ago the stock of Agrieuro Corp (OTCBB:EURI) registered an intraday high of $2.09 and a close at $1.73 per share. With 256 million outstanding shares that meant that the company now commanded a market cap of more than $430 million. Was such a tremendous valuation even remotely justified though?
Well, EURI did announce their plans to build the largest resort on the Black Sea and it did get investors quite excited. Even a single glance at the latest quarterly report filed by the company however reveals a far different picture. At the end of September EURI had:
• $13 thousand cash
• $187 thousand total current assets
• $1.8 million total current liabilities
• $151 thousand revenues
• $96 thousand net loss
The balance sheet is not exactly what comes to mind after reading EURI‘s PRs but the problems for investors are just starting.
Opening the company’s OTCMarkets page you will be greeted by the skull and crossbones warning sign. “Why is that there?”, you might be wondering. It is safe to say that it has something to do with the prolonged paid pump for EURI that is still going on. The promotion was launched over a month ago and it undoubtedly played its part in bringing EURI to such unrealistic share prices.
The artificial hype created by the pump cannot last forever though and currently EURI is rapidly coming back down the chart. On Friday the ticker lost over 16% dropping to a close at $0.895. As we said the involved newsletters – Best American Stocks, Finest Penny Stocks, and Smart Stock Winners, are still here sending another wave of email alerts but this time they had no effect on the trading of the stock. With disclosed compensations ranging from $100 thousand to $200 thousand the pumpers may stick around for a while longer.
Usually when a stock is being pumped this means that there are millions of underpriced shares that are waiting to be unleashed on the open market and EURI is not an exception. An unnamed group of investors bought a total of 2.1 million shares priced at $0.01 each. This September, however, EURI performed a 40-for-1 forward split and now these people suddenly owned 84 million shares for which they originally paid the sum of $20 thousand.
EURI is definitely a dangerous choice that demands extensive research. Take into account all of the extremely serious red flags before putting any money on the line.
