Puget Technologies Inc. (OTCBB:PUGE) Drops Despite Positive News
The stock of Puget Technologies (OTCBB:PUGE) continued to slide downwards during yesterday’s session. The company lost another 10% and fell down to $0.288 per share. Since the start of the month the company has been able to post only five positive sessions and it seems that investors’ sentiment won’t be easy to change. Especially when traders dumped the absolute record for the company number of 1.9 million shares on the market.
We have often talked about PUGE‘s decision to move away from the marijuana industry and jump into 3D printers. Although the switch happened right before the massive hype around the green plant overwhelmed the markets at the start of the year initially the company managed to hold its ground returning to price levels above a dollar. The trend quickly reversed though and since then the stock has been going nowhere but down losing more than 70% of its value.
Not to mention that yesterday’s drop took place right after the extremely positive news that PUGE are going to increase the production of their IdeaWerk high performance 3D printer in order to meet the growing demand was announced. The news came just two days after the initial order of 3D printers was sold out. So why is then the stock refusing to change its direction?
First of all the company has not mentioned any concrete information about the sales of their printers. We don’t know how much pre-orders were made, how much printers were actually delivered and how much revenue did they generate. The next financial report is still a few weeks away leaving us with the numbers for the period ending January 31. Back then PUGE were in a grim financial state:
- $46 thousand cash
- $92 thousand total assets
- $100 thousand total current liabilities
- ZERO revenues
- $170 thousand net loss
Investor should also keep in mind that back in July, 2013 PUGE had only 850 thousand outstanding shares. 550 thousand of them were sold to insiders of the company at just $0.001 while 300 thousand were sold for cash proceeds of $12 000, or 0.04 per share. Then the 50-for-1 forward split turned these shares into 42.5 million that could bring millions to their owners even at the current market prices. That is why any trades involving pennystocks must be preceded by doing your own due diligence and careful consideration of all the risks.
Yesterday Terra Tech Corp. (OTCMKTS:TRTC), a company that describes itself as a potstock, continued to drop towards the bottom of the chart. TRTC slashed 10% of their value and slid down to $0.36 per share. The recent corrections were caused by the quarterly report filed on May 15. It revealed massive net loss of $5 million just for the first quarter of the year. For more details you can watch our video coverage about the company.
