Arrayit Corp (OTCMKTS:ARYC) Bombs Down The Chart
We have often warned you that if you want any up-to-date information about Arrayit Corp (OTCMKTS:ARYC) you should turn to their social media accounts. And while most of the posts in Twitter and Facebook have been rather encouraging talking about recent sales or about the business travels of the management team this Sunday one post acknowledged the blog Sierra World Equity Review and their price target for ARYC of 60 cents per share.
In our previous article we talked about just how reliable of a source of information Sierra really is and it seems that ARYC have also done some due diligence because now that tweet has been deleted. Unfortunately the damage had already been done and yesterday the stock of the company suffered a devastating blow – after more than 60 million shares got traded the ticker found itself over 37% in the red. At the moment ARYC are sitting at $$0.0025 per share and those 60 cents seem even more unrealistic.
The lack of official PRs is not the only red flag surrounding the company. The latest quarterly report covering the first three months of 2015 showed that ARYC are in a rather desperate financial state with:
• $59 thousand cash
• $723 thousand current assets
• $8 million current liabilities
• $787 thousand revenues
• $1.4 million net loss
Some of the most notorious toxic funders operating in the world of pennystocks have become involved with ARYC– JMJ Financial, KBM Worldwide, Tangiers, Typenex Co-Investment LTD. The dilution that could result from the conversion of debt should not be underestimated. At the end of May Arrayit had 64 million outstanding shares but if you take a look at the June 18 session you will see that back than more than 232 million shares were exchanged. In order to see the current O/S of the company investors will more than likely have to wait for the next quarterly report that should be filed by mid-August.
It should be obvious that the stock is a risky bet with numerous red flags. If the ticker continues to slide after another sever correction it could drop into the triple-zero price ranges. If you are determined to trade the stock use caution and do extensive due diligence before putting any money on the line.