Neutra Corp. (OTCMKTS:NTRR) Makes A Strong Recovery

NTRRchart1.pngWe last wrote about the stock of Neutra Corp. (OTCMKTS:NTRR) nearly four months ago and back then the company was still clinging to its recent price gains trading above 80 cents per share. Unfortunately with the general hype around the marijuana industry dying out and the multitude of fluff PRs issued by the company having now effect the stock started rapidly losing positions. On June 16 NTRR dropped down to just $0.21 which represented a loss of 79% compared to the high of $1 posted at the start of the year.

Was such a drastic drop warranted though? Well, we must say that the fundamentals of the company are far from encouraging. Since 2013 NTRR have entered into five different joint ventures ranging from cannabis inhalation systems to antimicrobial coatings for germ-infested environments but not one of them has managed to earn the company even a dime in revenues. According to the latest quarterly report filed just last week at the end of March NTRR had:
  • $114 thousand cash and total assets
  • $224 thousand total current liabilities
  • ZERO revenues
  • $360 thousand net loss
Despite the depressing financial results on February 11 NTRR were able to acquire the company Diamond Anvil Designs, a developer of smoke-less vaporizers mainly focused towards the marijuana industry. For quite a while there were no meaningful updates about the progress of this product but on June 26 a PR was released stating that the company is preparing to launch it in mid-July. 
The news sparked another wave of enthusiastic buying and as a result NTRR has been climbing up the chart for five sessions in a row now. Yesterday it added another 18.5% to its value and returned to $0.54 per share. With more than 1.6 million traded shares the dollar volume for the day almost reached $1 million. 
Although having a marketable product that should finally turn NTRR into a revenue generating entity is undeniably a major step in the right direction investors still need to consider the fact that the sector of electronic vaporizers is quite saturated already with numerous companies offering similar products. 
Another major red flag around the company is the continued dilution of their common stock. Just for the three months covered by the financial report NTRR issued another 5.4 million shares as a conversion of debt at $0.01 each. For the month of May another 1.8 million shares saw the light of the day at the same conversion price. It should be obvious that the people holding these shares could reap some handsome gains if they sell them at the current market price. The dilution is not likely to stop with another $395 thousand worth of convertible notes featuring a conversion price of $0.05 issued on April 30. 
If the positive momentum remains strong NTRR might be able to keep its current price gains but the risks around them should not be underestimated. The millions of extremely cheap shares and the limited financial reserves could cause another WSTIchart10.pngslide towards the bottom of the chart. That is why doing your due diligence should precede any trades involving the stock. 
Yesterday the pumped stock of Windstream Technolog (OTCBB:WSTI) continued on its course towards the bottom and at the end of the session it had slashed close to 39% of its value. In just four sessions WSTI fell down from $22 per share to $0.55. The pump for Virtus Oil and Gas Corp. (OTCBB:VOIL) also suffered a devastating crash of 32% after more than a million shares got dumped on the market. At the end of the day the stock was sitting at $0.95 per share.

You may also like...