Stevia First Corp. (OTC:STVF) started trading actively in the beginning of the month, but it has been promoted already and there is a new promotion for today.
In its short trading history STVF has managed to go from about $0.75 to yesterday’s close at $1.06, up 3.92%. The volume for the session was approximately 534 thousand – not the lowest, but far from the highs.
The previous promotions started on March 13 and may have been factors for the current price level.
There are two newsletters touting STVF for today. Both disclose $40 thousand compensations for their efforts.[BANNER]
As of December 31, 2011 STVF had $16 thousand in cash and $242 thousand total current liabilities. On Feb. 7 the company entered into a Subscription Agreement with an investor who is to purchase $1.25 million in common stock and convertible notes over one year.
There will be five tranches, each bringing $250 thousand for STVF. The first one should have been on March 1. Further details can be found in the 8-K form.
At the current price STVF has a market cap of approximately $55 million. Considering that the company is in its early development and has very limited assets, such a valuation may be very high.
Even more so when one takes into account that STVF will be facing severe competition. In the 8-K about the financing the company admits that “Each of these competitors is larger, more established and has more resources than we do.”
At this point, it may be wiser to give more weight to the actual conditions, rather than to the tout mails. Nevertheless, the promotion could cause some stir on the market.
