Yesterday, Originoil Inc (OTC:OOIL) suffered its first double-digit price decline since mid-April. Not surprising, when you take into account the lack of recent news.
By the time yesterday’s trading session came to a close, OOIL stock had already gone down 10.3%, eventually closing at a 30-week low of $0.13 per share. The volume also set a record, but it was nowhere as long. In fact, 2.14 million shares changed hands, which is the highest score since May 24, as well as considerably higher than the average daily trading volume of 425K.
Apparently, no news has surfaced for the last couple of weeks. Nor have any promotional activities in support of OOIL stock taken place. OOIL’s latest PR dates back from May 23. Back then, the company proudly revealed it had received a firm order for a large-scale algae extraction system. The release went on to inform that the order had come from a leading enterprise specialized in providing solutions in the field of industrial CO2 waste management.
OOIL describes itself as a developer of a ‘breakthrough technology’, aimed at extracting oil from algae. However, it is not clear how far the company has gone as of now. The aforementioned transaction comes hard on the heels of several collaborative trials of Origin’s equipment.
Occupying the OTCQB marketplace, OOIL is a regular SEC filer. On May 16, the company published its most recent quarterly report, namely the one covering the period ended Mar. 31, 2011. According to the unaudited balance sheet, OOIL has:
- $0.55 million in cash vs. $0.23 million as of Dec. 31, 2010;
- $803K in assets vs. $128K in liabilities;
- $102 thousand in revenue as compared to zero revenue for Q4 of 2010;
- net loss in excess of $0.814 million vs $675K incurred in the previous quarter.
As it seems, while OOIL’s working capital balance looks fairly good, the company has showed signs of deterioration regarding its net results. Hopefully, the firm order mentioned above will narrow this gap. Otherwise, OOIL shares will most probably continue to lose value.
