CirTran Corporation (PINK:CIRC) Sees Light at the End of the Tunnel
Some say cooking is an art, but making a popular drink is both art and science, plus a large dose of packaging and marketing. The Playboy logo and fame may be a successful bid for CirTran Corporation (PINK:CIRC), a court-beleaguered beverage company that relies on its main energy drink for success.
The CIRC stock has been rising in the past few days after a negative period of selling, on reasonably high volume. In Wednesday’s trading, the ticker added more than 30% and we may expect even more dramatic moves for this double-zero stock. Before that, the ticker had a negative stretch, going down four days in a row.
Besides a range of innovative and interesting products, CirTran Corporation may be facing some trouble in the financial department as high liabilities and writing off losses sent the company to bankruptcy court. Here is the latest status for CIRC:
- $39,497 cash
- $1.22 million total assets
- $28.64 million current liabilities
- $344,514 loss from operations
Although the company has never been promoted before, at least not in our records, its negative working capital poses problems and speaks of an uncertain future. Only recently the company regained legal rights to the Playboy energy drink, which will continue to be produced and marketed. The problem with the drink is that the Playboy Enterprises, Inc. has broken the agreement and this caused material damage to the distributors of the energy drink.
To evaluate the risks and possibilities for the CIRC ticker, in the past we have looked at Bebida Beverage Co. (OTC:BBDA), of the same industry and similar business problems. Trading in a similar double-zero range as CIRC, this company shows little dramatic moves in its stock, though a steady decline in price over several months.
BBDA‘s success also depends on famous brands. The stock is periodically awakened by PR messages, among the latest a partnership with a Coca-Cola Company bottler who would provide guidance for the KOMA relaxation drink that is Bebida’s main brand. While we may assume both stocks are sliding as the season for cold beverages is still far off, it’s best to do your own due diligence before settling for a company that promises future development.