It looks like some close cooperation of Attitude Drinks and a stock promoter provided for a real action on the market on Friday. Shortly after the market opened, alerts reminded traders about the company and its Phase III recovery milk drink, implying that news is likely to follow and cause a breakout for the stock that appeared unable to break its trading range recently.
Then, at market close the company published the long expected release and ATTD share price surged straight up, but only to hit the $0.035 level that has been a strong resistance point in the past several months. The realized share turnover was the highest in the stock’s trading history with 1.41 million traded shares and ATTD closed the session with a 45.83% price increase from the previous day close.
The promotion is to last the whole week according to the promoter’s disclosure and it has been compensated with $45,000. That compensation has been paid by a third party, which could hold shares and could be planning to sell them out as soon as the desired share price appreciation has been reached.
Attitude Drinks’ PR said that the company has received its first truckload of Vanilla flavored Phase III Recovery drink and will now begin filling orders from its previously announced new distribution partners. Unfortunately, the company’s latest financial results put a large question mark on whether that event could actually change the general state of the business.
In the third quarter of last year, ATTD had total revenues of $1,000, half the value from the second quarter. Its balance sheet showed horrible indebtedness of over $10.3 million, all the amount being reported as current liabilities and to be paid out of the $18,000 in cash and the $77,000 in other current assets. The company does not have any significant long-term assets either, meaning that the raising of additional capital will most probably impose high dilution risks on the shareholders.
