Last Friday was an exceptional day for the
stock of Exousia Advanced Materials,Inc.(
OTC:EXOU). There was an increase in both price and volume of traded shares. While the change in the first index was consistent with the
pattern it has been fol
lowing since the beginning of the year, the second one set a record with more than 58 million shares changing the holders in just one session.
Now, for a sub
penny stock one might consider the above number a normal one. This is true indeed, until compared to the past performance. The trading activity seen on Friday represents a volume of around twenty five times the average. Natu
rally, it affected the price as the session opened at $0.007 and
closed at $0.008 per share. As mentioned, promotions took place and are most likely to have caused this unprecedented investor interest. It is another matter entirely whether the trend of slow price increase would maintain its pace in the days and weeks to come.
Since this company was introduced to the stock market its shares have followed a very negative trend, being firstly traded at around $2 in 2007. This lack of interest and confidence in investors must have its roots. Some of them are on display in the 10-Q reports of the company. The last one, for example, covering the first three quarters of 2010 included the following:
- total current assets of $139k
- total current liabilities of $7.8 million
- an accumulated deficit of $29 million
Now, main line of business for Exousia at present is the provision of a variety of fuel products through its subsidiary Evergreen. Exousia manufactures advanced eco-friendly resins, engineered particles, high-performance coatings and structural products. [BANNER]
In general, the company operates in a promising field and a lucrative one. The fact of the matter is though that sustaining operations often required selling company stock or obtaining additional loans. That coupled with a net loss of $5.1 million for the three quarters of 2010, makes the future of the company seem even more uncertain.
One thing is clear: it is not stock promotions that can help Exousia survive and become profitable. Rather, what the company needs is a different type of balance sheet, showing some smart management decisions and well-executed short and long-term strategies.
