Borislav Tonev

Green Innovations Ltd (OTCBB:GNIN) Trying To Leave The Bad Memories Behind

by Borislav Tonev September 17, 2013
3GNIN.pngOn August 22 Green Innovations Ltd (OTCBB:GNIN, GNIN message board) announced that their natural baby wipes are available for purchase on Amazon. No one batted an eyelid. A few days later, they said that a new VP of Sales has been appointed, but once again, investors couldn't care less. Their attention was somewhat drawn on Friday when GNIN announced the launch of a new line of Bamboo-based products and the volume did jump above the three-month average. In terms of percentile movement, however, the session was not that eventful. Yesterday? That was a whole different story.

About an hour and a half before the opening bell, a press release was issued in which GNIN informed us that their CEO, Mr. Philip Rundle, has been featured in an interview that was allegedly aired on Fox Business News. Mr. Rundle was questioned by Red Chip Companies' Dave Gentry and since we missed the show on TV, we were hoping that there will be a copy of it kept somewhere. Luckily, there is.

We can see that GNIN's management team seems quite optimistic about the future. Mr. Rundle spoke about the new VP of sales, about the performance in July which turned out to be the most successful month since the beginning and he also made some bright projections about the future. He expects revenues to reach around $1 million by October and he says that profitability also won't be an issue by then. Bold claims, you would agree, and it seems that they sparked something of a trading frenzy.

The ticker opened the day at $0.175 and from then on, the only direction was up. After six and a half hours of intense buying and selling, GNIN closed the session at its high of the day of $0.275 which presents daily gains of around 57%. The number of shares traded is also impressive - 2.1 million which is the highest volume registered over the last four months.

It would appear that the company CEO's optimism really did affect retail traders but, as good as things seem to be, the cold hard truth is that we won't get a confirmation of his words at least until the next financial statement. In the meantime, we decided to focus on something altogether different - Red Chip's disclaimer.

In it, we read that GNIN pays Red Chip a monthly fee for an investor awareness campaign and we also read that Red Chip own some restricted stock. That's normally something of a bad sign since the last time someone got paid to raise awareness around the ticker, things didn't really go according to plan. In fact, "not according to plan" probably isn't very illustrative of the disaster that occurred to GNIN when some newsletters and a few paid research reports squashed the ticker. Have things changed since then, though?

Well, there are certainly some signs of progress. The financial report covering the second quarter of 2013, for example, shows that things are moving in the right direction. Here's a recap of the most important figures:

  • cash: $72 thousand
  • current assets: $2.1 million
  • current liabilities: $1.1 million
  • revenue: $437 thousand
  • quarterly net loss: $869 thousand

GNIN have improved their financial situation in nearly all aspects and if they manage to continue moving in the same direction, success might just be within reach in the next couple of months. Does that guarantee a steady growth in the share price, though?

47GNIN_logo.pngUnfortunately, no. When the going gets tough, GNIN is one of the worst performers out there and now, with the increased activity on the PR front and with the awareness campaign initiated by Red Chip, the threat of sudden and violent corrections seems to be looming closer and closer.

There are some other things to consider. Like for example, GNIN's CFO, Mr. Bruce Harmon. He received quite a lot of shares when the acquisition of Green Hygenics took place back in September 2012 and he is also involved with other small cap companies like eLayaway, Inc (OTCMKTS:ELAYD), Organa Technologies Group Inc (OTCMKTS:OGNT) and Tauriga Sciences Inc (OTCMKTS:TAUG) that are not doing particularly well. We also see that he is not very popular with investors around the message boards and some even blame him for the terrible stock performance. Whether they're right or not remains unknown, but we reckon that keeping all the facts in mind is definitely a good call.

Comments 1

1. Guest
September 24, 2013, 10:20PM

Quotes Pretty fair assessment of the GNIN. I also was wondering about RedChips compensation and how it was distributed. I believe you answered that question. One other concern has crossed my mind. Why isn't Jeff Thurgood still with Kimberly-Clark?

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