NuGene International Inc (OTCBB:NUGN) Manages Another Green Close

Some of you will probably like NuGene International Inc (OTCBB:NUGN) a lot. Take the company credibility, for example. Unlike many other OTC enterprises, NUGN seems to have a proper headquarters with its name put on the front. It doesn’t use a virtual office solution.

There’s a connection to a famous name as well. Recently, NUGN signed a licensing agreement with former model and entrepreneur Kathy Ireland which, in and of itself is quite an achievement. Willingly or not, Ms. Ireland is now drawing attention to the company through some of her tweets.

It’s not all hype, though. Thanks to the agreement with Ms. Ireland, NUGN now have some beauty products to sell and they seem to be doing it rather well. Q1 of 2015, for example, ended with the following results:

  • cash: $619 thousand
  • current assets: $1.3 million
  • current liabilities: $305 thousand
  • quarterly revenues: $481 thousand
  • quarterly net loss: $240 thousand

The balance sheet isn’t bad at all. The lack of toxic debt is particularly encouraging. And while the company did indeed log a pretty serious net loss during Q1, some upcoming products might just turn things around. Earlier today, NUGN said that one of those products has been tested by Princeton Consumer Research and announced that the results are good.

So, by the looks of things, the company has some serious sales, it has the publicity, and it has the connection with the celebrities. To top it all off, the stock performance is absolutely astonishing.

NUGN seems to be adopting a slow-and-steady-wins-the-race sort of approach and daily gains rarely exceed 5%. Nevertheless, the last red session was registered almost two months ago and since then, the ticker has managed to grow by a rather impressive 57%. Last week, NUGN also generated quite a lot of dollar volume which means that liquidity shouldn’t be a problem, at least for the time being.

It almost sounds too good to be true, doesn’t it? It might just be.

The facts and figures above are certainly contributing to the stock’s incredible performance, but they’re not the only things pushing it in the right direction. There’s also a paper mailer brochure touting NUGN and although we haven’t yet seen the disclaimer, we’re pretty sure that somebody has paid a significant amount of money in order to send it flying around. And that’s a bit of a worry because while inexperienced investors are getting carried away by the forward-looking statements from the magazine that miraculously appeared on their doorstep, other people might be making money from the hype and excitement.

We talked about NUGN a couple of months ago and we mentioned that back in 2013, some unnamed investors bought more than 11 million shares for just over $37 thousand. Right now, they might be getting more and more eager to unleash their discounted stock on the open market and walk away with the humongous profits. If they do it, things could turn quite ugly, and even NUGN‘s beauty products might not be good enough to fix them.

About fifteen minutes after today’s opening bell, NUGN is sitting at $3.14 (about 0.6% in the green).

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