Hristina Beeva

GRILLiT, Inc. (OTCMKTS:GRLT) Deepens Downward Trend

by Hristina Beeva August 22, 2013
Unfortunately, the stock of GRILLiT, Inc. (OTCMKTS:GRLT, GRLT message board) is becoming less and less inviting, as the ticker slides despite the press release campaign. GRLT marked another day with a 15% loss down to $3.15, although the sales remain tamer, at $340,000. So far, the company seems to have run the steam out of a combined promotion and a series of press releases on new restaurant openings. And the last four days created a significant downward trend.  TQLA0822.pngGRLT0822.png

With the end of the week looming, the trend may be magnified, or may be broken for a while by new buying. Still, the more days pass since the last message from a pumper on August 5th, the more investor interest is expected to fade.

Let's recall the financial picture for GRLT, as it plans to open as much as 58 franchise locations:

  • $3 thousand in cash NROM0822.png
  • $187 thousand in current liabilities
  • $209 thousand in quarterly revenues
  • $46 thousand in quarterly net loss

GRLT should take some time to show if it is just a fad stock, or if the restaurant business could add much-needed solidity. Still, $3 and above is quite a price for a pink sheet, and may sink back to more natural levels.

The year 2013 was one that livened up the stock after a period of relative dormancy and a sideways drift in price, lifting GRLT from below the dollar levels. And we may expect the activity to carry over into the new months, as the company reminds of itself with press releases on new franchise locations.

Marketing spread is an often heard message in the penny stock circles. This, along with a paper and email promotion, was masterfully used by Montalvo Spirits, Inc. (OTCBB:TQLA) to boost the ticker to above $1. But the end of the promotion came with several series of drops, the last one looking more and more dramatic, permanently pushing down TQLA below 50 cents.

And for Noble Roman's Inc. (OTCBB:NROM) the fallout from a high spot is similar. The company revved up its franchise activity and PR messages pushed it above $1.60, but in the past week or so correction made it slide to $1.30.

While restaurant companies may hold longer-term potential, this is not true protection from a quick drop in price, which is more unpredictable. Research well on your own the quality of the stock you are picking and don't overestimate the potential for success.

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