News about a finalized sponsorship contract between The Dallas Cowboys and Totally Green Inc. (f/k/a Naturally Iowa, Inc.) (PINK:TLGN) allowed for spectacular performance of the latter on the stock market. Not only did its share price gain 33% and close at $0.147, but also the turnover exceeded 1.7 million, hitting a seven-week high.Following a massive advertising campaign that took place in early-December, TLGN stock underwent a significant surge in both price and volume. This wave then slowly faded out, bucking the upward trend. Ever since the company filed its Q3 report for 2010 on Dec. 14, the trading of its shares hadn’t been subject to extreme fluctuation. After all, an unaudited financial report showing
- a working capital deficit of $300 thousand and
- a negative financial result going beyond the $500K mark
could hardly paint a satisfactory picture of a company, let alone a Pink Sheets-listed one. As soon as the the high-scale sponsorship deal was announced, TLGN stock took a turn for the better and put an end to the mediocre run. [BANNER]
Previously known as Naturally Iowa, Inc., Totally Green Inc. is an environmentally-driven company which specializes in offering a range of products and services aimed at preserving the environment. Its basic focus is now directed toward transforming organic waste into grey water, so that it does not have to be buried in landfills. This appears to be the core subject of the 5-year deal with the Dallas Cowboys as well.
The contract, other things being equal, is expected to ensure sustainable growth for TLGN stock. Nevertheless, in the light of the company’s current financial condition investors will most probably think twice before going for it.
