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GROGENESIS INC (OTCMKTS:GROG) Retreats From 52-Week High

Last week, the stock price of GROGENESIS INC (OTCMKTS:GROG) broke through the crucial $1 mark and made a new 52-week high of $1.05. The stock cannot sustain at higher levels and quickly slumped down to close the Thursday’s trading session with gains of 2.1%. However, on Friday it gave away a major part of its gains to close in red. It declined more than 16% to close the day at $0.870 with share volume of 437,138.

The momentum

GroGenesis failed to close above a dollar a share. Still, the momentum of the stock price remains extremely positive. Since the start of this month, GROG has hardly recorded a single session ending in red. The investors are getting cautious on to how long will the momentum continue. The company has two leading products and they are the AgraBurst and the AgraBlast.

The findings

As per the latest news that came on March 31, GROGENESIS INC (OTCMKTS:GROG) received positive results from recently concluded trials in Australia. It is verified that the crops treated with product AgraBurst resulted in an extra yield of 1 to 3 tons per hectare compared to the untreated areas. Here, the concern is not the results of the underway trials of the company’s products.

Dismal financial state

The main concern is the financial state of GroGenesis as it just had $147 in cash as disclosed in the quarterly report ended November 30, 2014. The current assets were no more than $20 806 whereas the total liabilities were no less than $271,000. Again, it is one of the OTC traded firms that doesn’t make revenue. The net loss was $69,000.

The problems

It is evident that the problem with GroGenesis the cash reserves. At such lower cash reserves and with no revenue it holds a market cap of almost $79 million. It seems overly-inflated. The company expects to file its report for the quarter ended February 28, 2015 in this week which will provide a better picture of the company‘s operations.

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