If you hold a stake in Fuse Science Inc (PINK:DROP), you must be well aware that it is not the right time to short your shares unless you are willing to incur losses.
As seen on the accompanying chart, DROP stock has been going down recently. In fact, DROP had dropped for three negative sessions in a row before going up 12.5% yesterday. Closing at $0.636 per share, DROP shifted a total volume of 2.5 million, which is well below the average daily trading volume of 3.12 million.
Fuse Science Inc is focused on developing novel technologies aimet to enhance the way consumers get energy, medicines, vitamins and minerals.
Although DROP is still a regular SEC filer, the lack of its 10-K report for the annual period ended Sept. 30 is becoming more and more obvious, which is why the company has now degraded to the pink sheets marketplace. At least, the company’s managers have condescended to inform stockholders of an impending dilution by filing a Schedule 14C on Dec. 2. According to the latter, the company intends to approve:
- a four-fold increase of DROP’s A/S;
- an 800-fold increase of its preferred A/S;
- a much wider board of directors.
While all these steps are fairly logical when it comes to business expansion, it is too early to determine whether DROP has showns any signs of growing its business. The company finished the quarter ended Jun. 30 with a negative financial result of $450 thousand. The very fact that the new report has been delayed by five weeks now suggests that the financial figures have hardly changed dramatically.
Nevertheless, DROP’s managers could have something up their sleeves to excite stockholders in the near term. Until we hear some news, however, this remains a mere hypothesis.
