Car Charging Group Inc. (OTCMKTS:CCGI) Makes a Jump Aided By PR
The last month of 2013 was tough for the stock of Car Charging Group Inc. (OTCMKTS:CCGI) which was sliding violently downhill. This year, the ticker started out with small movements in both directions and has lately managed to regain some of its value.
The company regularly makes press releases, but investor interest is generally not the highest. That can’t be said for yesterday’s session, however, when CCGI announced that their wholly owned subsidiary, Beam Charging will be installing 21 electric vehicle (HV) charging stations in Brooklyn, upper Manhattan and Long Island.
The release also informed the public that it has been awarded $300 thousand from the New York State Energy Research and Development Authority (NYSERDA) inder the Charge NY initiative of Governor Andrew Cuomo.
This led to a 16.67% jump in price and CCGI closed the session at $1.40 with the highest amount of traded stock in its history. A total of 480 thousand shares switched hands during the day and generated some $603 thousand in dollar volume.
It seems that the good news were enough to provide for a decent jump, but can the company go further up considering the numbers contained in their Q3 report for 2013.
- cash: $57 thousand
- current assets: $3.3 million
- current liabilities: $9.9 million
- quarterly revenue: $89 thousand
- quarterly net loss: $7.9 million
As you can see the losses are quite big and the liabilities even bigger. Furthermore there is a lot of controversial information about the CEO of CCGI, Mr. Michael D. Farkas who was sued by investors who claimed to have invested $7.4 million in SkyWay Communications (one of Farkas’ companies that is now liquidated in a federal bankruptcy proceeding filed in Tampa).
All in all, CCGI is a company that’s far away from becoming profitable and overcoming its huge losses and liabilities. Their stock remains risky, so be sure to do a lot of due diligence and weigh out the risks if you have any idea of investing in it.
Most of the tickers in the medical marijuana sector are still sinking after the boom in the first 2 weeks of the year and Growlife Inc (OTCBB:PHOT) and Terra Tech Corp. (OTCBB:TRTC) both lost 10% in yesterday’s session.