Stevia Corp. (OTC:STEV) closed the last session with an increase in the share price after the company published another one of its regular press releases. Despite the optimism that the company’s announcements try to bring on the market, the future value of STEV remains very uncertain.
After the moving averages cross from last week, on Tuesday this week STEV share price dropped below the $0.80 support level, but the selling of shares declined as well and yesterday the closing price was $0.83, which is 5% higher than the previous session. Trading volume also exceeded the average with over 832,700 traded shares.
STEV stock price has still not taken a clear direction, although the company keeps issuing positive news and the stock even got some paid promotions a while ago. The last such optimistic announcement came just yesterday to point out the market’s “rapid acceptance” of the company’s entry into the Farm Management business, and respectively the second partner agreement of STEV in Vietnam with Asia Stevia Investment Development Joint Stock Company (ASID) who will also grow stevia seedlings and other products using the G-Farm system of STEV.
End of November, the company filed with last quarter report, revealing one more time that STEV should start generating substantial revenues as soon as possible if it is to keep the market value of its stock, which currently exceeds $43.8 million.
According to the report, at the end of September, its current assets were $83,000, while its current liabilities amounted $454,000. From that liabilities, $350,000 are due under convertible notes, meaning the company is likely to dilute its shareholders soon. STEV does not have any other assets apart from the above mentioned, and from the $5,000 in website development costs also booked as an asset.
Further, the report says that STEV has supplied some cash after the end of the reported quarter to meet its short-term capital needs, yet not at the very best terms. The company raised $100,000 by selling common stock at $0.25 per share, and got a total amount of $400,000 in proceeds again from convertible notes. Such short-term funding agreements would obviously not be enough, and beneficial for shareholders, for STEV to implement its development plans.
