Novus Robotics, Inc. (OTCMKTS:NRBT) Attracts Attention And Climbs Higher
Recently the stock of Novus Robotics, Inc. (OTCMKTS:NRBT) has been making leaps and bounds up the stock chart. For the past 8 market days it skyrocketed by exactly 1000%, starting from $0.026 to close at $0.26 yesterday. This amazing run has been supported by an unprecendeted for the past year interest from investors logging in traded volumes of 2.5 million shares for the past two days.
In order to explain the sudden spike of a stock with an average volume of just 200 thousand shares we didn’t have to look far. The company has been advertised on a couple of business radios and traders have decided to check it out.
NRBT through their wholly-owned subsidiary D & R Technologies have focused their business activity on the engineering, design and the manufacturing of automated tube processing solutions for the automotive industry. They are trying to diversify their portfolio of products by offering medical robotics, personal robotic devices and water treatment but for now they haven’t been able to generate revenues from them. And as a whole the first quarter of 2013 has been significantly less successful than the same period last year. According to the quarterly report they have:
- $607 thousand cash
- $1.7 million total current assets
- $1 million total current liabilities
- $377 thousand revenue
- $8 thousand net loss
Revenues have declined by 77% compared to 2012, the negligible net loss of 8 thousand is a decrease from a net profit of 400 thousand. The company is almost entirely reliant on Johnson Controls, Inc to buy its products. But investors have much bigger concerns regarding NRBT.
Until last year they were known as Ecoland International, Inc. (ECIT) with the purpose to sell Dry-Bar Cave bat guano. We have no problem with the change of businesses seeing that they have transitioned quite smoothly to robotics. The problem is that in January, 2012 the company was heavily pumped. The newsletters participating in the campaign were paid $100 thousand as well as receving 1 million restricted shares. The stock rose from $0.1 to more than $1.30 on truly massive volume. But all those who failed to bail out before the crash saw their investments turn to dust.
This is more than likely going to happen once again. Currently NRBT has defaulted on two of its convertible notes regarding $36 thousand that are remaining. They can be turned into 7.2 million shares at the tempting conversion price of just $0.005, or 5 times cheaper than yesterday’s close. Some hope can be provided by the fact that the notes were transferred to the CEO/President of the company Mr. Dino Paolucci.
Investors should be careful when buying in on hype alone. Doing your due diligence is always necessary when dealing with pennystocks, especially ones that have been heavily pumped in the past. NRBT is 20% up in early trading which may bring the inevitable crash so much closer.
Another company that was on a steep climb yesterday finally toppled and dropped by 10%. Liberator Medical Holdings, Inc. (OTCBB:LBMH) is down by another 6.47% today and may suffer even harsher correction. The Awesome Penny Stocks pump on the other hand is going stronger than ever.. Their prolonged pick Xumanii, Inc. (OTCMKTS:XUII) put another 25% to its value and is closing in on the coveted $1 mark. The newsletter must be relieved because it promised to retire if the company doesn’t reach a dollar per share.