Respect Your Universe, Inc. (OTC:RYUN) was founded in 2008 and began trading recently. In the last few days some volume has been accumulating.
Yesterday RYUN hit two new highs. The price went up 18.37% to a $0.29 close. Approximately 1.9 million shares were traded.
There isn’t too much information on the company other than the basic business idea, which is to sell mixed martial arts apparel. A post on the company’s facebook profile suggests the first roll out of clothing should come soon.[BANNER]
RYUN’s web site is a bit bare for now, but it does provide some information on the management of the company.
The company hasn’t generated any significant revenues since its inception in 2008. It has, however, managed to accumulate about $681 thousand in current liabilities. As of Mar. 31, 2011 RYUN had just $448 cash to account for all the assets of the company.
The plan is for RYUN to outsource pretty much every aspect of its business including manufacturing, warehousing, product distribution, shipping needs. Even the design and development is outsourced to a consulting firm.
It is clear that RYUN will require some additional financing if its operations are to commence and continue. That will inevitably lead to debt and equity financing, which may have a negative impact on shareholders’ investments. For now, however, the market seems to react positively to this newcomer.
