After recording a strong session on Wednesday, the stock price of NuGene International Inc (OTCBB:NUGN) declined 0.57% yesterday and closed at $1.73. In the previous session, the stock enjoyed a strong closing as it jumped 16% to close at $1.74 per share. The marginal decline on Thursday was a small break or a start of something sourer would be evident next week.
The gains recorded on Wednesday can be attributed to the Press Release which updated investors on the results of a limited trial to evaluate the efficacy of NuGene’s Light and Bright Gel. In the limited study, 56% of patients noted a 75% improvement in skin appearance while 33% experienced an improvement of 50%.
The financial performance of NuGene is better than majority of penny stocks. As of June 30, 2015, the company reported cash of $486,000. NuGene reported $1.16 million in current assets while total liabilities stood at $268,000. The sales came at $536,000 and net loss was $772,000. Even after recording $500,000 of generated capital from the offering of a 15% Promissory Note, the financial numbers as revealed in balance sheet remains unsupportive of the current market cap of $68.8 million.
Investors should note that some time ago NuGene was targeted by a massive paid pump of $4.4 million. Thanks to the hype created by the hard mailer brochures, the stock crossed the $4.50 barrier in June 2015. Unfortunately, the stock failed to maintain its gains and currently is trading almost 61% lower from the recent high.
Additionally, in March 2014, the company sold 148,000 NUGN shares for $37,050, that in turn converted into 11.1 million shares priced at 0.0033 per share due to the forward split completed at the start of this year. It is evident that NuGene has several red flags that make investment in the stock rather risky.
NuGene International Inc (OTCBB:NUGN) entered into a consolidation phase in the last trading session as it ended the day with a minor loss of 0.57%. The volume remained low at 46,000 against the daily average of 88,000. The stock had surged in the previous session very sharply, which requires a sideways phase to gather more strength to extend the rise. The weekly chart attached clearly shows the stock to be in a downtrend but without any real momentum in the last few weeks. If the bears don’t take control soon, then the probability of a bounce will increase.