Nutranomics, Inc. f/k/a Buka Ventures Inc (OTCBB:NNRX) Continues Further Up

NNRX.pngAfter Monday’s explosive trading during which Nutranomics, Inc. f/k/a Buka Ventures Inc (OTCBB:NNRX) gained as much as 36% and registered a mind-boggling dollar volume ($7.85 million), it continued to go up during yesterday’s session. This time, the figures weren’t quite as eye-popping – 2.2 million shares changed hands pushing the trade value up to around $2.45 million, but the ticker did add another 12% which means that the current share price stands at $1.15. By the looks of things, today’s session is shaping up to be pretty exciting as well.

NNRX issued a press release a couple of hours ago and in it, they explain that they have managed to secure a meeting with Unlimited Network of Opportunities (UNO) – a large multi-level marketing company. NNRX tell us that UNO will request the development of six new products for some distributors in the Philippines which should speed up the Asian expansion that everyone’s been talking about for the last couple of days. We all know that penny stocks are prone to movement caused by some optimistic news which means that the PR will probably have its effect on today’s performance, but there is one, even more important piece of information that came out after the end of yesterday’s session.

If you check out our first article, you’ll see that one of the most profound problems we had with NNRX was the fact that, because the reverse merger was completed just a couple of days ago, we had no up-to-date financial information we can work with. That is no longer the case.

About an hour after yesterday’s closing bell, they filed an 8-K form in which they described all the details around the deal which resulted in Nutranomics becoming a publicly traded company and, fortunately, they decided that including a financial statement will be appropriate. Needless to say, we were quite eager to see the figures and we are guessing that you feel the same way. Here’s how things stood as of July 31:

  • cash: $11 thousand
  • current assets: $450 thousand
  • current liabilities: $688 thousand
  • yearly revenue: $2.8 million
  • yearly net loss: $171 thousand
  • accumulated deficit: $2.5 million

Straight away, you can see that things aren’t quite as bright as some people thought. Indeed, the proceeds generated from NNRX‘s products are quite close to the $3 million mark, but the expenses (which are expected to increase due to the public status of the company) outweigh them. In addition to this, they have a negative working capital and we’re not sure if just $11 thousand in the bank will last for long.

The report also states that their business plan will require close to $700 thousand during the next twelve months and they claim that they might need to sell some equity in order to raise the cash. With profitability nowhere in sight, this will probably dilute quite a large portion of the investments and this is definitely something you should keep in mind in case you’re considering putting your money in NNRX in the long run.

9NNRX_logo.pngIn the meantime, rumors about an upcoming stock pump are still flying around and some of the promotional newsletters have already announced NNRX as their new pick. We received a couple of emails from Today’s Pick Is and Penny Stocks Psychic yesterday, but the most curious part is the fact that according to their disclaimer, the two outfits have not received money for raising awareness around the ticker. Rather, they admit that they have bought 10 thousand shares each on the open market and that they intend to sell the stock in the future.

That’s not such a huge amount and we doubt that a potential offload will cause too much of a chaos, but even so, we still have some concerns. It’s pretty clear that NNRX‘s financial situation is not perfect which could hamper the company’s future growth. In addition to this, the ticker might be in for a wild ride if the rumors about an upcoming pump turn out to be true and even without it, sudden corrections are not impossible which is why considering all the risks carefully is definitely a good call.

3MEDA.pngOther notable movers during yesterday’s session included Media Analytics Corp (OTCBB:MEDA) who continued to drop after the $3.8 million pump for them turned into a farce and Refill Energy, Inc. (OTCMKTS:REFG) who are also starting to feel the promotional pressure. Will the same thing happen to NNRX? Only time will tell.

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