Carbon Credits International Inc (OTCMKTS:CARN) Soar Once Again
Reviewing penny stock companies that use the alternative reporting standard on the OTC Markets could be a bit frustrating. The reason for this is very simple – since they are not regulated by the accepted rules for their reports and financial statements, they can decide what they want to disclose and how they want to format it. Luckily, Carbon Credits International Inc (OTCMKTS:CARN) are among the ventures on the Pink tier that prefer to have their statements cleanly put together with the necessary information included in them.
They also love to issue press releases and if all the announcements are to be believed, they also have a habit of making quite a lot of acquisitions. CARN‘s Yahoo Finance profile keeps around 14 headlines, the oldest of which is dated July 24, 2012 and the mergers announced in them are so many that it’s really hard to get your head around which would bring the company more money. With that in mind, we were rather perplexed when we saw the figures in the balance sheet and the statement of income. Here are the most important financials as of January 31:
- cash: $5 thousand
- current assets: $21 thousand
- current liabilities: $122 thousand
- quarterly revenues: $3 thousand
- quarterly net loss: $91 thousand
As you can see, while there is an active website providing all sorts of services related to text messaging marketing, this is still not the solid business venture that the pumpers are talking about.
And they are talking about CARN a lot. A quick look at our database reveals that the first emails we managed to intercept about them are dated September 11, 2012. Since then, around fifty more have hit our inbox the latest of which were sent prior to yesterday’s trading session by OrbitStocks and TopStockTips. The promotion along with the announcement about the name change gave the ticker a push in the right direction and it finished the day at $0.007 per share or 40% above Tuesday’s close. But what about the long run?
Well, as we mentioned the first pump campaign took place in September last year and back then, the stock hovered around the $0.05 per share mark, which means that in a matter around 8 months CARN have lost around 85% of their shares’ value. That said, this could also be partly due to the rather disturbing dilution that the shareholders have suffered during the last months.
According to the latest financial statement, they had around 46 million common shares outstanding as of February. The information on the OTC Markets website however is more recent and it says that the number is 68 million. Open CARN‘s previous financial report and you will see that the outstanding shares in October amounted to just 16 million. With very little in terms of revenue all the stock issuance is crushing the shareholders’ investments and it threatens to push the ticker even further down to the bottom of the chart.
What can they do about it? Well, in addition to letting the printing press cool down for a bit, they could also try to stay away from paid promotions. We have outlined all the pumps that we managed to intercept on their chart and you can see that the results are pretty appalling.
Also, if they want to give the ticker some credibility, they can try to change the address of their corporate headquarters since, with the magic of Google Maps, potential investors can find out that currently, it’s situated in a residential house and we’re not really sure if this is appropriate for a company presented as a solid investment option.
All in all, they still have some way to go until they can claim to be a safe place for your money. If you want to jump in just for a quick trade, you should also be careful. We saw what happened during the previous promotions and there’s little to suggest that this one will be different.
