When Flanders Corporation (PINK:FLDR) announced three days ago that it would raise the price of most of its products by 3% due to significant cost increases, barely 865 shares changed hands in the subsequent market session, leading to a 9% appreciation of FLDR stock.
Two days later, i.e yesterday, investor interest in FLDR increased dramatically as more than 107 thousand shares were traded throughout the day, setting a new record since late-April. The big volume, however, had a slightly negative impact on the price of FLDR stock. The latter went down 9.5% returning below the $3 level at $2.76 per share.
Considering that FLDR was consistently traded around and above $3.50 per share a couple of months ago, its current market position can hardly be classified as excellent.
Flanders Corporation occupies the premier OTCQB market tier, yet it has not submitted a single report to the SEC for more than 6 months. Moreover, on Aug. 15, the company published an alternative quarterly report for the second calendar quarter of 2011, which suggests that FLDR might be on the verge of losing its regular SEC filer status. According to the report, the company’s financial results as of Jun. 30, 2011 disclosed:
- cash reserves in excess of $1 million;
- $104 million in current assets, more than $77 million of which in the form of trade receivables and inventories;
- $48.5 million in current liabilities;
- net sales of $65 million and net income of $48 thousand.
By all accounts, FLDR is more financially stable than it has ever been. Yet, the company’s net results for the last four quarters have produced controversial figures. That is why, it will take a little while before the management enjoys a steady trend of growing profits.
