After the spike in the last day of Converted Organics Inc. (OTC:COIN) on the NASDAQ, the price of COIN stock had been losing value. Until yesterday, when the company held a shareholder conference call.
COIN managed to close up 17.84% at $0.0601 after 4.2 million shares had changed hands. About half an hour after the conference call had concluded, COIN reached its high of the day at $0.079, but that didn’t hold too long.[BANNER]
Days earlier, the company filed its 10-Q for the second quarter which didn’t help the stock much despite the reported income for the quarter of approximately $1 million.
The lack of positive reaction was probably due to the fact that the positive results are due to gains on settlement of debt and equity transactions. The result from operations alone was again a loss in the amount of $3.5 million.
In the conference call it was made clear that COIN should have enough cash to get them through 2011, and should they need more then there are investors willing to provide financing, said Edward Gildea, President and CEO of COIN.
The company plans to continue searching for further acquisitions, and at the same time Mr. Gildea stated they would be looking for joint ventures and a possible sale of assets as a source of additional financing.
The balance sheet of COIN looks better than it did at the end of Q1, but it is still far from healthy. The company will need some dramatic change at the business end of things if they are to report another profitable quarter.
