Nutranomics, Inc. f/k/a Buka Ventures Inc (OTCBB:NNRX) With A Fourth Green Session In A Row
The Share Exchange Agreement between Health Education Corporation dba Nutranomics, Inc. and Buka Ventures Inc (OTCBB:NNRX) was completed on September 19. This allowed the privately held nutritional food company to turn into a publicly traded venture and right now, just over a week later, the ticker has already become something of a celebrity in Pennyland.
Shares first changed hands on Monday when NNRX blasted onto the scene, registering a mind-bending dollar volume of around $7.8 million and 36% in daily gains. On Tuesday, the amount of stock changing hands was quite a bit smaller and since then the interest has died down a bit (although trade values still stand way above the $1 million mark). Some people might complain about this, but the fact of the matter is that the ticker has showed very few signs of hesitation and has gained around 60% since it first started trading. Quite the performance for a stock that hit the exchange just a couple of days ago, but that said, there are some reasons to suggest that NNRX might actually be a viable investment option.
From the very get-go, press releases claimed that NNRX is an established venture with yearly revenues of nearly $3 million. They said that they have a host of products and that they are developing some more and they even provide educational services for people who want to explore the best dietary habits. More announcements hit the wire suggesting that an expansion into the ever-growing Asian market is underway and we can definitely say that the person at the helm of the company, Dr. Tracy Gibbs, leaves us with an impression that he knows what he’s talking about.
Today, a new press release informs us that they are about to complete another purchase order worth more than $400 thousand and, on the whole, it seems that the future is bright. Is that really the case, though?
Well, there is the question of profitability. NNRX filed an 8-K report on Tuesday in which they gave us and potential investors some much needed information about the financial position of the company and from the statement, you’ll see that they have indeed generated sales worth around $2.8 million during the year ended July 31. Unfortunately, you’ll also see that as of the same date, they had:
- around $238 thousand in working capital deficit
- $2.5 million in accumulated deficit
- a yearly net loss of approximately $171 thousand
- only $11 thousand in cash reserves
We’ve seen financial statements from other small cap ventures that look much worse than NNRX‘s one, but even so, there are some causes for concern. The losses incurred by the ongoing operations are definitely the biggest problem and we should acknowledge that if they succeed in cutting the costs down, we should see a massive improvement in the company’s financials.
Until then, there are some other things to worry about and they concern the stock promoters. Rumors are flying around about a big awareness campaign being set up for NNRX and even some of the newsletters are hinting that the ticker might be the target of a paid pump in the near future. So far, we have received nine emails from Penny Stocks Psychic, Today’s Pick Is and Penny Stocks Forever (who are currently involved in the pump for North American Oil & Gas Corp (OTCBB:NAMG)) and while they say that they haven’t been compensated for their alerts, they admit that they have bought “up to 10,000 shares on the open market” which they could release at any time.
We can’t be sure if a potential offload will cause too much trouble, but having it in mind is definitely a good thing. What’s more, the promoters rarely raise awareness around a ticker just for the fun of it. There are usually some other motives involved and, as you probably know, email alerts generally tend to have an adverse effect on the share price.
