Konared Corp (OTCMKTS:KRED) Moves Higher
Yesterday Konared Corp (OTCMKTS:KRED) announced that they will be entering the Japanese market. The company has signed with Asplund Co., Ltd., granting them non-exclusive distribution rights for KonaRed beverages throughout Japan. Although the announcement is quite encouraging the company’s stock experienced a rather turbulent trading session.
KRED opened at $0.166, dropped in the red to a low of $0.155 just to bounce to an intraday high of $0.1765 and ultimately close the day at $0.175. Despite the unstable performance this marked the fifth consecutive session for the stock that ends in the green. As a whole KRED has gained over 40% compared to its July 10 closing price of $0.124.
The financials of the company are also not that bad for a pennystock venture. The net sales of the company increased by 39% in 2014 and reached $1.25 million. At the end of the first quarter of 2015 KRED reported:
• $240 thousand cash
• $951 thousand total current assets
• $943 thousand total current liabilities
• $239 thousand net revenues
• $544 thousand net loss
The balance sheet was further strengthened through a purchase agreement with Lincoln Park Capital Fund, LLC. Under the terms of the deal KRED may sell up to $10,250,000 of stock to Lincoln Park. The purchase price of the shares won’t have an upper limit and will be based on the prevailing market price of the stock without featuring a fixed discount.
Before you get too excited however let’s draw you attention to some of the red flags surrounding the company. Despite the impressive results for 2014 KRED are not having the greatest start for 2015 and the revenues for the first quarter are down by 41.6% compared to the same period last year. At the same time the quarterly net loss has increased by nearly $40 thousand.
The company has plans to expand its operations by entering the Japanese market, as we said earlier, and also by selling raw coffee fruit powders and liquid extracts to other companies. KRED will expand its Nutraceutical Performance Powders line with new products while also launching products for the functional food market. If they will be successful, however, remains to be seen.
There is another red flag that should be taken into account when contemplating whether to jump into the stock or not – the paid pumps. Back in 2014 KRED were targeted by a massive $2.3 million pump campaign. More recently the stock has been touted by smaller pump newsletters. On July 15 the Stock Commander and the NextBigTrade issued email alerts hyping up the ticker but it seems that more and more pump outfits are getting involved – after the end of yesterday’s trading 8 emails were sent by a host of different newsletters. The disclosed compensation ranged from just $1000 to the more substantial amount of $12,000.
