Creative Edge Nutrition Inc. (OTCMKTS:FITX) Recovers Lost Ground On Social Networking
Friday brought Creative Edge Nutrition Inc. (OTCMKTS:FITX) a 9.90% surge on just a few Facebook pictures of the company’s Canadian greenhouse project.
April 17 and April 23 both saw FITX appoint well respected specialists to the company’s board of directors. Sadly for FITX, both pieces of PR failed to affect the company’s market standing noticeably.
Investors proved more or less indifferent to the news, despite the renown and expertise of both John A. Germinario and Dr. David L. Felten. This may be because neither one of the two is likely to be able to achieve much for the company form the position he has been appointed to.
What did manage to give FITX a serious enough boost to break its descent, were a couple of pictures that the company uploaded on its profile on the social network. The heavy earth moving equipment and metal fences on said pictures must have looked very impressive to many investors, because Friday’s session took FITX‘s stock to a high of $0.0877 for no other obvious reason.
This may not appear much, but a quick check determines that the company currently has a market cap of $298 MILLION. So what is wrong with that, FITX enthusiasts may ask? Well, for starters, we’re talking about a company whose quarterly report for the period ended Dec 31, 2013 looked like so:
- Cash – $19 thousand
- Total Current Assets – $0.8 million
- Total Current Liabilities – $4.6 million
- Revenues – $303 thousand
- Net loss – $1.4 million
Although the comparison between these disturbing financials and its ridiculously overblown market cap is indicative enough of the company’s real value, this is by far not the only red flag surrounding FITX.
Despite the fact that it has made an attempt to sever all ties it had Growlife Inc. (OTCMKTS:PHOT), the company couldn’t distance itself from its former strategic partner overnight. FITX‘s declaration that it had found other means to advance its plans for the facility in Canada is also yet to be backed by a filing describing the steps taken to do so.
Meanwhile investor confidence in the whole sector is falling dramatically with each suspension of a “prominent” marijuana company by the SEC. In the last three months alone we have seen at least five such cases, and the frequency of the investigations and suspensions just seems to be increasing.
It is well known what such a suspension can do, both to the marijuana sector as a whole, and to the stock of a specific company. With this in mind, investors may what to be extra careful when dealing with pot stocks in these turbulent market times.
