Just when you thought Visualant,Inc.(OTC:VSUL) is going for the dollar, when everything seemed so good. Time to come back to earth, unfortunately, as you have no doubt realized, that the difference between intentions and current realities is vast, as far as Visualant is concerned.
Since the beginning of the year, the stock price increased steadily and was going for a 100% increase. This week, however, press releases no longer serve as catalysts for the upward trend, even though trading volumes are still revolving around 500k. The latest 10-Q is released and it is time for traders to get sober. As a result, price decrease of 15% followed yesterday, the daily session closing at $0.57 per share. To better understand what prompted for breaking the upward trend, it is the following facts and figures in the 10-Q that should be mentioned:
- $55k in cash;
- liabilities exceeding assets by $2.8 million;
- warrants in place that also provoke uncertainty;
All in all, the deeper you dig, the more unpleasant the future looks for Visualant. Traders have been riding the wave of announcements and predictions, it was natural that this would not last long. As the current market development suggests, people tend to think the time to sell has come, which would inevitably result in price drops. Let alone, Visualant tends to depend on subsidiaries, rather than sales of its own products. [BANNER]
The situation, in terms, closely resembles the scenario from last November. In the same time frame promotions and press releases managed to push the price from $0.3 to $0.7, crashing to a deeper level shortly after. In this aspect, it does not seem to be the best time to buy right now, but it might come very soon. Volatility on the stock market follows every step of this company, and this is a good thing for some short-term investors. When the next pump will be is a matter of scanning closely everything that comes out about the company over the next few weeks.
