Hristina Beeva

GRILLiT, Inc. (OTCMKTS:GRLT) Unravels, Breaks Below $2

by Hristina Beeva August 26, 2013
Last week ended with bad publicity on GRILLiT, Inc. (OTCMKTS:GRLT, GRLT message board), casting doubts on the ability of the restaurant company to remain a viable stock choice even outside its promotional email and PR campaign. The stock is predictably sold off, down 35% to $1.91 on medium volumes, aroudn $338,000. The ticker has been in the red with increasing sales and daily drops as it moves away from an artificially-inflated peak. GRLT0826.png

At the end of the promotion, we could sum up the events until now: a budget of $44,000 and 42 emails that brought GRLT from 12 cents to a peak near $5. Along with this came promises that GRLT would be opening lively restaurants in up to 58 locations in the next few years. But all of those promises were in disproportion to the company's real resources, which are quite minimal: ATTD0826.png

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

In just two days, GRLT crossed back the $3 and $2 borders, showing that it has little support, with the below-dollar levels only a few weeks back. It is quite possible the new week would come with new selling.

Prime Time Stocks, one of the last pumpers for GRLT, has long since moved on with new selections, this time seeming to have a riskier profile. Exlites Holdings International, Inc. (OTCMKTS:EXHI) is one of the cases where a promotion has the reverse effect- the pump helped holders shed their shares, sending the ticker down 90%, from 10 cents to a penny. At least GRLT offered a wild run up for investors that had the wisdom to exit on time.EXHI0826.png

And Attitude Drinks, Inc. (OTCMKTS:ATTD) is a low-quality selection that made quite a run, broke through the penny level and slid down even faster.

In the case of GRLT, the stock is still at a high-enough price, so the fallout may hold temporary surprises. But even the newer selections of Prime Time Stocks show that a fallout may deepen in just a few short days. If you still find a price at which GRLT looks like a bargain, it is still best to only invest sums you can afford to lose in part or in whole. We expect the GRLT game to be played at much lower price levels in the days to come.

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