Growblox Sciences Inc (OTCMKTS:GBLX) is Growing Again
Growblox Sciences Inc (OTCMKTS:GBLX) has enjoyed some growth over the last few days. Indeed, the stock slipped by about 5% yesterday and it’s currently sitting at $0.55 at the moment, but thanks to the few green sessions before this, it’s still about 100% above the levels occupied just a month ago.
What’s more, during Thursday’s session, GBLX managed to hit an intraday high of over $0.70 per share for the first time since November and it racked up a dollar volume of just under $290 thousand which goes to show that there’s no shortage of people willing to place their Buy orders. The thing is, some of them have probably forgotten to take a look at the stock’s performance from the last year or so.
GBLX experienced its first active sessions in March 2014 when the company announced its entrance into the medical marijuana industry. As you probably know, the hype around the pot business was quite strong back then and it propelled the ticker to some truly exciting levels. On March 24, 2014 for example, it hit almost $9 per share. Slowly but surely, however, the stock started showing signs of weakness and it embarked on a south-bound journey that saw it drop to a 52-week low of just over $0.15 on March 20, 2015.
The reason? Well, the people at GBLX don’t shy away from using words like “pioneer” and “leader” in the business description, but the figures in the financial statements suggest that these words aren’t particularly appropriate. Here, for example, is a summary of the results for the fourth calendar quarter of 2014:
- cash: $282 thousand
- current assets: $886 thousand
- current liabilities: $320 thousand
- NO revenue
- quarterly net loss: $621 thousand
The people jumping in right now are hoping that some of the more recent news will turn things around and will help the stock get back to its feet. Sadly, even some of the press releases aren’t especially convincing.
On Wednesday, for example, GBLX said that they have established a subsidiary in Puerto Rico and explained how they, alongside a local businessman called Cesar Cordero-Kruger, want to push the new daughter company in the right direction. If you open the 10-K for the period ended March 31, 2014, however, you’ll see that the Puerto Rican subsidiary was actually set up a long time ago.
Of course, this may seem like a small detail, but when the CEO of the company you’re willing to invest in has a less-than-spotless track record, it might turn out to be significant. And if you’ve been reading our articles on GBLX closely, you’d know that the company is headed by Craig Ellins who has tried to get several public enterprises off the ground with limited success.
Dilution is yet another thing you might want to bear in mind. The O/S count grew from just over 7.2 million in March 2014 all the way to nearly 35 million in February 2015 and a recent Schedule 13 form tells us that it’s now sitting at more than 43 million. Treading carefully is, as always, extremely important.