Nano Labs Corp (OTCMKTS:CTLE) Appears on the Radar Again
400% in just two days. That’s the sort of gains only a triple-zero penny stock like Nano Labs Corp (OTCMKTS:CTLE) can give you. But don’t take our word for it. Take a look at the performance from the last two days for yourself.
On Wednesday, the ticker interrupted its long hibernation and it ran from $0.0001 all the way to $0.0003 while registering a pretty decent (by triple-zero OTC standards) dollar volume. Yesterday, the volume was even more impressive and the hectic trading pushed CTLE another 66% up to a close of $0.0005.
So, there you have it – if you time your trades right, you can profit from CTLE. If you’re not careful, however, you might become one of the people who have gotten their fingers burned on CTLE. A quick look at the longer term chart shows that it’s not exactly an exclusive club. But why is the stock performance so poor?
Well, the pumpers have played their part. If you take a look through our database, you’ll see that CTLE has been one of the most heavily promoted penny stocks in recent years. The pumpers have made numerous promises, but none of them worked out.
The same can be said about the people running the company, by the way. Press releases have talked about breakthroughs and technological revolutions, about joint ventures and contracts. All this led to a quarterly report that looks like this:
- cash: $11 thousand
- current assets: $116 thousand
- current liabilities: $4 million
- NO revenues since inception
- quarterly net loss: $909 thousand
There’s another problem. We have covered CTLE more than once on these pages and we have talked about the numerous convertible notes that the company has issued in the past. The conversion has now started and it seems to be getting out of hand.
During the nine months ended March 31, CTLE converted about $302 thousand worth of notes into 38 million shares which means that five months ago, the O/S count stood at around 250 million while the amount owed under various convertible notes hovered just over the $1 million mark.
We’re still waiting for the annual report for the period ended June 30 which means that we don’t know how much convertible debt is still outstanding. What we do know is that last week, the number of issued and outstanding shares stood at nearly 950 million.
All in all, there’s no shortage of problems. Why, then, did investors jump in and push the ticker up during the last two sessions?
Because some people appear to be convinced that CTLE is about to drop some major news which apparently involves Wal-Mart Stores, Inc. (NYSE:WMT). Quite what it’s going to be is anyone’s guess at the moment, but it should be noted that the tweets and messages touting the “upcoming news” in themselves constitute a rather big red flag.
Investing in rumor-propelled penny stocks is risky. Investing in rumor-propelled penny stocks that have as many problems as CTLE does is riskier still.
