In the starting two months of this year, Saleen Automotive Inc (OTCBB:SLNN) stock price recorded small but stable daily percentile movements. However, the last five month chart clearly indicates that the stock is in a bear phase. The volatility increased last month as the stock started with a deep decline that continued into this month. In less than a month, the stock had eroded over 90% of its value.
There was no apparent reason for the sharp decline recorded by SLNN in last one month. The only factor that supports the fall is absence of quarterly report. In addition, the numbers contained in the last report for the quarter ended December 31, 2014 revealed that Saleen Automotives has $95,000 in cash. The current assets came at $673,000 and current liabilities were $7million. The revenue in the quarter was $536,000 and net loss came at $2.44 million.
The quarterly report indicates that revenue has declined by almost 50% compared to the same quarter in the previous year. Moreover, the net loss jumped by about $1 million in the same period in 2013. The only silver lining is that the revenues haven’t declined significantly in the nine month period as compared to the net loss.
The future ahead
As a matter of fact, the sales in the custom vehicles market tend to differ in each quarter. Saleen Automotive has recorded some considerable achievement in past few years and has even developed a custom Tesla Model S that received positive attention. Considering the financials of the company and what Saleen is offering in the automobile industry, it appears that the current market cap of the company seems to be low.
Saleen Automotive Inc (OTCBB:SLNN) stock managed to record gains of over 16% on Monday and closed at $0.0014 on a share volume of 101 million. However, it failed to continue with its gains in last trading session and is currently trading 8% in the red in today’s trading session.