At present, it is difficult to judge whether Root9b Technologies Inc (OTCMKTS:RTNB) truly deserves the investors’ rage or is actually a victim of short sellers. The stock of company traveled into red as investors continued to sell the shares of the cybersecurity company.
Victimised by negative publicity
During the last few days, Root9b Technologies Inc (OTCMKTS:RTNB) is surrounded by a series of negative publicity, where an article by an investor with nickname “The Pump Stopper” has really put a brake on the company’s advance. In his report, the investor has raised several questions on the company’s way of business and its management.
Further, the article also highlighted that the people at the helm of the company have a terrible record of managing businesses, which has spiked fear in the general investors of the company. However, one cannot deny that the article was written when the author had a short position on Root9b Technologies Inc (OTCMKTS:RTNB), which serves a good motive behind such negativity.
A review of the company’s most recent financial report shows that it held cash balance of $5 million and current assets of $23.4 million. The company’s current liabilities stood at $17.5 million as at the end of March’15, while its quarterly revenues showed a decent number of $9.5 million. The operating loss of the company during the quarter was $2.7 million.
So far the response from Root9b Technologies Inc (OTCMKTS:RTNB) concerning the published article has done little to help it. In fact, a number of law firms right from Levi & Korsinsky LLP to the Rosen Law Firm have started an investigation on the company. Resultantly, the company lacks the strength to support its stock price, which continues to tumble steeply. The stock price dropped by over 19% to $1.02 during the previous trading session as 297,000 shares changed hands.