Creative Edge Nutrition Inc (PINK:FITX) Getting High Again
Another month, another promotion for Creative Edge Nutrition Inc (PINK:FITX). We saw what happened the last couple of times when newsletters tried to create some hype around FITX, and when Stock Mister’s email hit our inbox yesterday, we were rather puzzled.
The first thing that struck us was the fact that apparently, pumpers are not deterred by the previous failures and they are at it again. That said, we have followed the promotional newsletters for some time and we know that they’re quite stubborn. We also know that they are ready to do just about anything for the compensation. And since we mentioned compensation, we should note that according to Stock Mister’s disclaimer, they have received a whopping $150 thousand for the awareness campaign on FITX and that got us even more confused.
$150 thousand is a huge amount of money even for a relatively big pumper like Stock Mister, and we thought that there must be a reason for all the excitement. The first thing to check was FITX‘s filings on the OTC Markets website where we were hoping to find a new report full of big figures under the revenues and net income sections. There is a new financial statement but unfortunately, it doesn’t have the financials we were hoping to see. Here’s what FITX had in December 2012:
- cash: $95 thousand
- current assets: $460 thousand
- current liabilities: $1 million
- revenue: $775 thousand
- net loss: $652 thousand
As you can see, the figures are nothing to boast about and, if anything, the latest statement looks even worse than the ones before in some aspects.
With a bit of frustration we carried on to see if we will find something new among FITX‘s press-releases. After all, every single one of the previous pumps was garnished with a piece of exciting news that got investors all wound up. We checked, found nothing, and just when we thought that the $150 thousand paid for the promotion have been blown for nothing, the page refreshed and we saw the new headline. We literally got it in the nick of time.
The announcement was made just minutes ago and it states that FITX are now entering the medical marijuana business. Yes, the next in a long line of penny stock companies that are taking advantage of the new, more pot-friendly laws in some states. FITX have even taken the time to create a website for their new product – a hemp protein that provides your body with hard-to-pronounce amino-acids and other substances that we’ve never heard of. The website itself comprises of only two pages and it doesn’t really give us all that much information, but we reckon that, since the marijuana sector is so hot in Pennyland nowadays, it’s going to create quite a stir among investors. But is this announcement really all that exciting?
Well, we checked all the websites owned by FITX (there are a few) and from what we could gather the marijuana-based product is still not for sale. At the same time, while the press-release gives us a long explanation on the benefits of the new protein powder, there’s no mention if it’s actually in production.
Then there’s the question of costs. As we mentioned in previous articles, FITX do have their products and they seem to be marketing them rather well (proof found in the revenues) but they simply can’t produce them cheaply enough which means that they have been working at a loss for a while. Will they manage to do something different with the marijuana product? Only time will tell.
Stock Mister, however, are recommending that you get in on FITX right now and we’re not too sure about that. For one, as we also noted in our previous articles, FITX have been diluting their shareholders for quite some time now and if you compare the number of outstanding shares as of December 2011 and December 2012, you will see that they have more than doubled over the course of just 12 months. That is something to have in mind if you decide to invest in them in the long run.
If you just want to make a quick profit out of the hype, you should also be extremely careful. FITX‘s chart shows how badly the previous pumps ended and there is little to suggest that this one will be any different.