Creative Edge Nutrition, Inc. (OTCMKTS:FITX) Shifts in Reverse

0FITX_chart.pngAfter doubling its share price in four consecutive sessions, Creative Edge Nutrition, Inc. (OTCMKTS:FITX) dropped 10% on Tuesday. Share volume cooled off a little but remained heavy, at 147 million shares changing hands.

FITX came up with another press release yesterday, this time recapping on the media exposure the company received over the last few days, including coverage by several popular outlets related to the stock market and the marijuana sector in particular. The release didn’t stop the drop, with FITX slumping out of the gate, then calming down and ending the session a cent down.

The company’s big bet is their production facility in Lakeshore, Canada. The facility is a joint project of FITX and Growlife, Inc. (OTCBB:PHOT), using technology licensed from RXNB Inc. FITX has big plans for the facility but it’s still early days and the level of excitement being built up around it may prove unhealthy in the long run.

FITX anticipates to have the facility built in 8 or 9 weeks. When this is complete, the company will have to call inspectors to give them the stamp of approval if all is built to specifications. CEO Bill Chaaban’s faith in the project was strong enough for him to voice his belief in an interview with Alan Brochstein that the enterprise may become a buyout target for a much bigger company and that it has the potential to become something worth more than all other pot stocks combined.

This sort of optimism is admirable but may also be a little over the top, considering the fact that there is still no proof construction is underway despite the promise of pictures showing the advancement of work on site. As Mr. Chaaban himself pointed out, the market capitalization of companies in the pot sector are through the roof, including that of FITX, which means traders are often betting largely on future promise and not actual performance.

0FITX_logo.jpgAt this stage FITX has a bold vision for the future, a building permit for its facility, over 3.4 billion shares issued and outstanding and an annual net loss of $5.5 million for fiscal 2013. With the extreme volatility that has been rocking pot stocks since the start of 2014 and the FINRA reiterating its 2013 warning to investors about this volatility, traders may want to weigh all facts and public information that they can get their hands on before making a decision.

FITX is currently 9% down in early trading.

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