Yet, while the long expected closing of the acquisition is still due, the promotional fire hit traders again. No wonder why there was such a trading frenzy yesterday. The stock almost doubled, the session closing at $0.02, while trading volumes surpassed anything seen before, coming to the shocking 14 million. Quite a good run, but will it last is another question entirely.
As usual in the penny stock market, the financial statements of this company are not quite inspirational. Simultaneously with the announcement about the near closing of the acquisition, a 10-Q amendment came out, which included the following: [BANNER]
- $22 in cash;
- $33k in liabilities;
- $78k of accumulated deficit;
Even for a development stage company, these levels seem very low. Some people might interpret them as a sign for limited or no operations. On the other hand, there is the big plus of having strong management in place. Mr. Renfro, the key individual in Brazos, has more than 25 years of industry experience working for companies like Exxon and Shell among others. This by itself is a sort of relief that even though Brazos is not quite stable at the present moment, it is at least in the hands of highly experienced people.
Time would tell whether they can achieve it. Two factors should be present – the never ending saga with the acquisition to be finally completed; the next financial statements should differ from this current state of lack of money, sales and revenues.
