stock gained 2.31% on Friday on a volume pointing over 280 thousand shares traded.As there is no other explanation for the positive change, it turns out that it occurred after Geeknet reported the increase in its sales and the replacement of its CEO.
According to the company’s latest report, GKNT’s e-commerce sales have increased 43.2%, while its total sales got approximately 30% higher. Though, the company has suffered a net loss of $2.5 million by the end of June this year.[BANNER]
Over the past six months, the total assets of Geeknet have declined as compared to the year before. However, they remain about six times higher than its liabilities.
On August 3, the Board of Directors approved a 1:10 reverse stock split of the company’s common stock, though the split is still subject to stockholder approval.
Geeknet is an online network for the global geek community that owns and operates SourceForge, Slashdot, ThinkGeek, Geek.com, ohloh and freshmeat. This April the company has traded at $1.60 per share, though after that the stock started a downtrend with frequent price changes. Last week it moved up again, however the high momentum was quickly cut off.
Presently, Geeknet is confident about its market presence and states that the company’s existing cash balances will be sufficient to fund its operations during the next 12 months only.
Though, as GKNT “is subject to various claims and legal actions arising in the ordinary course of business” and is not confident to generate the sufficient capital for its further operations, the future stock movement should be carefully observed.
