Anastas Gegov

GRILLiT, Inc. (OTCMKTS:GRLT)'s Pump and Crash

by Anastas Gegov August 6, 2013
4GRLT_chart.pngGRILLiT, Inc. (OTCMKTS:GRLT, GRLT message board) is an OTC Pink sheet company that has been promoted by different promoters on a regular basis in the past few months. The breakthrough came in the last days of July when the stock was priced at $0.26 and started going up fast with the help of a press release made by GRLT on July 26 announcing their franchise plan.

In just 5 trade sessions the stock managed to gather a whopping 892% in value and they were priced at $2.32 in last week's final session with a good amount of 418 thousand traded shares, which is quite a lot considering their average of 68 thousand. The trade value was also quite big and amounted to $794 thousand.

Even though the stock was going up through last week and people were getting more excited with the huge gain in price and the massive volumes in which the stock started trading we can't say that they started this week promising.

Yesterday trading started well for GRLT as they gapped up and opened at $2.42 and even reached a high of $2.49, but the massive amount of traded shares pushed the price down in the first hour of trading.

After the company dropped as low as $1.21 trading quieted down and the day went by with very few transactions allowing the ticker to regain some of its previous value and close at $1.69 or 27.16% down from Friday. Even though the day started off with a boom of trades the volume in the end of the session came at 286 thousand, generating a trade value of $457 thousand.

867LOGO.pngThe company is rather new to the health conscience fast-food business and their report for Q1 this year doesn't show any impressive numbers. They recently announced that they have have secured a $3 million line of credit that will be used for funding of the acquisition and refashioning of GRILLiT fast food restaurants and also marketing campaigns, which sounds pretty good.

It seems like they are aiming for the big league judging by the choice of location for their restaurants. The first two places at which they have already opened might be considered like the first steps, because even though they are competing with Burker King Holdings, Inc. (NYSE:BKC) at one location and KFC on the other, GRLT still offers a healthier alternative to both fast-food chains.

The press release they issued on July 29, however, shows that they want to make the next big step and take on the big boys in the healthy fast-food restaurant business. The press release in question announced the opening of the 3rd restaurant from their chain on August 2. The location at 555 Church St, in Nashville, Tennessee, however, shows their ambition and the fact that they are willing to try their luck against the nearby Subway and Quiznos restaurants. The Quiznos should also be in the same building as GRILLiT, because it has the same address, so it will be an interesting battle of subs against wraps.

360XUII_chart.pngWe might say that they seem to be headed in the right direction, but we are yet to see some results from their operations in the next 2 quarterly reports. They might loose quite a lot of the value they gained in the recent, rapid ascend, so be sure to do a lot of due diligence before you decide to take on the risk.

Xumanii, Inc. f/k/a Medora Corp. (OTCMKTS:XUII) was one of the most traded companies yesterday, even though thet are currently at a decline with a price of $0.28, after they lost 10% of their stock's value. Soul and Vibe Interactive, Inc. (OTCBB:SOUL) commanded one of the highest amounts in trade value yesterday with $2.6 million, but lost 7.58% in price and closed at $1.22.

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