A major run – this is how it starts for Auri Inc.(OTC:AURI). It came out yesterday, set to affect trading today, and maybe the rest of the week. Yet to see what would happen, but one thing is certain – $250k in cash is not an amount of money to go overlooked. 
After the great February run, AURI has settled at levels between $0.5 and $0.7 per share. The session yesterday was no exception. A bit over 25k shares changed hands, the session closing at $0.58 per share – a minor decrease in the price for the day. As mentioned, however, things might change today.
Something hit mailboxes this Tuesday. A newsletter with many details to pay attention to. One of them – the potential of Auri to be a $6 stock soon. This is what the promotion states. There are the comparisons with out similar enterprises, there is also the $250k that a third party paid for this promotion. A figure which raises questions, important questions for sure.
For example, this is what the last 10-Q of the company looks like:
- $233k in cash;
- $925k in total current assets;
- $387k in total current liabilities;
- $5.2 million in accumulated deficit;
- $169k in revenue;
- $508k in net loss; [BANNER]
The above figures are for the second quarter of the year. Not a bad ratio of assets to liabilities, but also a net loss that is hard to ignore. What is more, the promoter is paid more money than the company received from sales of its products for a whole quarter. $250k is also more than what the company had in cash on June 30 this year. So, the question is – when someone pays that amount of money, what would the return be as it is unlikely that $250k is paid out of good heart, and just for brand awareness? Might be good to have some version of what the answer would be before acting on the newsletter.
On the other hand, the promotion mentions something else, which is a very positive fact. As it seems, Auri is ranked the 8th most promising company by Forbes. Despite the recurring net losses, obviously there is real potential in this enterprise. Combined with the large amount of cash paid to affect trading activity today, however, it is still caution that should be applied on the stock market.
