Stockholders of Vitamin Spice (OTC:VTMS) who had expected to finally see a dramatic trend reversal during yesterday’s session will probably not get their hopes up again any time soon.
What actually happened was indeed dramatic, but not in the sense investors wanted. In fact, VTMS stock crashed down big time. By the end of the session, VTMS had almost halved its price, ultimately losing 47% in value. Thus, at $0.0106 per share, it reached an all-time low.
Since there is no smoke without fire, however, the price slump can be largely attributed to the enormous selling pressure that took place during that very same session. As a whole, more than 4.57 million shares of VTMS stock changed hands. While VTMS set a negative record in terms of value, this tremendous spike in volume brought about just the opposite, i. e an all-time high in terms of volume.
Yet, investors can only guess what might have triggered this huge sell-off. The last PR issued by the company is now four weeks old. In addition, it was by no means a negative one. In fact, the company revealed that a couple of its products were to undergo a clinical study organized by a leading healthcare provider in Miami. In case the results of the survey prove successful, the company’s products might improve the quality of life for the elderly population.
In general, VTMS describes itself as a manufacturer of gourmet spices. The company was founded in 2008 and has since been a regular SEC filer, hence its OTCQB market status. On May 20, a brand-new 10-Q saw the light of day. According to the unaudited balance sheet, as of Mar. 31, 2011, VTMS had:
- $19K in cash vs. $0 in Q4 of 2010;
- negative working capital of $11.4 million as compared to $10.6 million for the previous quarter;
- $629 in revenue vs $901 for Q4 of 2010;
- net loss of $0.55 million as opposed to $1.29 million incurred in the preceding quarter.
Not surprisingly, the aforementioned financial figures might be the main suspect behind VTMS’s continual decline on the charts. Unless the company diversifies its portfolio of operations with some new and commercially viable ideas, it runs a very high risk of sinking into oblivion in due course.
