volume jumped over 11.5 million shares. The strangest thing here is that GRNE fell down on the same day on which it was promoted.According to stockpromoters.com, Green Endeavors has paid a compensation of 2.500 shares to Bull In Advantage, LLC for the promotion, though GRNE stock price has decreased.
Apart from the promotion, yesterday the company issued a press release reporting that Green Endeavors was going to amp its marketing efforts. Richard Surber, CEO of the company, stated that although they had a limited budget, their marketing strategy “must be executed with laser precision”.
Apparently, the announcement wasn’t encouraging enough for traders and GRNE stock couldn’t move up again.[BANNER]
Green Endeavors currently operates two salons under the Aveda Lifestyle Salon and Aveda Concept Salon names in Utah. According to its financial report, GRNE has outstanding shares of approximately 354 million in total, of which 88.63 million are in the float. Besides, the company states that its common stock is currently deemed to be a “penny stock”, which makes it more difficult for investors to sell their shares.
Over the past three months, GRNE’s revenue has increased and it has more assets than liabilities, however, its stockholders’ deficit is over $3 million. Since Green Endeavors has a negative working capital and the company hasn’t covered its net loss, there is a substantial doubt about GRNE’s ability to continue operation. The company is dependent upon ensuring additional financing and upon the ability to fulfill its business plan.
As GRNE is not presently realizing net cash flows, the management team relies on equity and debt financing, though there is no assurance that such sources would be available. Thus, while Green Endeavors are searching for additional capital, investors should carefully observe the position of the stock.
