{"id":4674,"date":"2014-05-29T12:14:08","date_gmt":"2014-05-29T12:14:08","guid":{"rendered":"\/?p=4674"},"modified":"2014-05-29T12:16:07","modified_gmt":"2014-05-29T12:16:07","slug":"dna-brands-inc-otcmktsdnax-gets-a-volume-spike-and-a-mysterious-bounce","status":"publish","type":"post","link":"\/articles\/dna-brands-inc-otcmktsdnax-gets-a-volume-spike-and-a-mysterious-bounce\/","title":{"rendered":"DNA Brands, Inc. (OTCMKTS:DNAX) Gets a Volume Spike and a Mysterious Bounce"},"content":{"rendered":"<p> <img loading=\"lazy\" decoding=\"async\" style=\"float: right; margin: 3px;\" src=\"http:\/\/www.hotstocked.com\/articles-img\/small\/5DNAX.png\" border=\"0\" alt=\"5DNAX.png\" title=\"5DNAX.png\" width=\"400\" height=\"178\" \/>DNA Brands, Inc. (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a>) is a fully reporting company that files its financial statements in accordance with the SEC standards and yet, if you check out the company profile, you&#8217;ll see that it&#8217;s currently traded on the Pink tier. That&#8217;s because OTC Markets recently placed a minimum bid price of $0.01 on OTCQB stocks and at the moment, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a><\/strong> is not able to reach it. <\/p>\n<p>After a prolonged slide, the ticker dropped in the sub-penny levels on April 25. It then failed to break the fall and on Friday, it hit its 52-Week low of <em>$0.0021 per share<\/em>. Fortunately for the shareholders, this week is proving to be much more positive. On Tuesday,<strong> <a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a><\/strong> managed to wake up and regained some of the lost ground and yesterday, it doubled its value and registered a dollar volume of around <em>$581 thousand<\/em>. Currently, it stands at $0.0058 which isn&#8217;t much, but on the bright side, the penny per share mark seems to be within reach once again. The question is: &#8220;<em>Can <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a><\/strong> make it?<\/em>&#8220;. <\/p>\n<p>The bounce doesn&#8217;t seem to be caused by anything immediately obvious. There are no paid promotions at the moment and the latest press release, though optimistic, is now more than a week old. This means that predicting the future performance of the stock is extremely difficult.<\/p>\n<p>Unfortunately, the same can be said about the company&#8217;s operations. Unlike the majority of sub-penny enterprises, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a><\/strong> actually have some revenues and they&#8217;ve been working on getting the ball rolling for quite some time. Sadly, the latest 10-Q reveals that they have quite a lot of issues. Here&#8217;s a summary of the figures recorded at the end of Q1:<\/p>\n<ul>\n<li>cash: $110 thousand<\/li>\n<li>current assets: $428 thousand<\/li>\n<li>current liabilities: $3.2 million<\/li>\n<li>quarterly revenues: $48 thousand<\/li>\n<li>quarterly net loss: $793 thousand <\/li>\n<\/ul>\n<p>The problems are quite obvious &#8211; the working capital deficit is huge, year-over-year revenues are growing, but the progress is somewhat slow, and profitability is still nowhere in sight.<\/p>\n<p>There is one more thing you need to consider &#8211; <span style=\"text-decoration: underline;\">dilution<\/span>. The 10-Q tells us that during the first quarter of 2014, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a><\/strong> issued a total of <strong>35.5 million common shares<\/strong>. 24.1 million of them were sold for cash proceeds of $193,500 (<strong>$0.008 per share<\/strong>) and the rest were issued as a conversion of debentures at a rate of <strong>$0.009 a piece<\/strong>. A quick comparison between the latest 10-Q and the 2013 10-K reveals that between April 9 and May 18, <a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a> issued an additional <strong>44.1 million common shares<\/strong>.<\/p>\n<p>The convertible debt that we see in the report could suggest that the dilution is far from over. As is often the case, the notes and debentures carry a discount in their conversion features which, in the case of<strong> <a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a><\/strong>, ranges <em>between 20% and 50%<\/em>.<\/p>\n<p>With that in mind, let&#8217;s get back to our original question: &#8220;<em>Can <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a><\/strong> break through the $0.01 per share barrier once again?<\/em>&#8220;. Nobody can say for sure, but the facts that we listed above clearly show that there are some things you need to consider well before putting your hard-earned cash on the line.<\/p>\n<p><strong><img loading=\"lazy\" decoding=\"async\" style=\"float: right; margin: 3px;\" src=\"http:\/\/www.hotstocked.com\/articles-img\/small\/0GRCU.png\" border=\"0\" alt=\"0GRCU.png\" title=\"0GRCU.png\" width=\"350\" height=\"156\" \/><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=DNAX\">DNAX<\/a><\/strong> wasn&#8217;t the only OTC stock to register some high volumes during yesterday&#8217;s session. A press release about a potential buyout sent Mktg, Inc. (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=CMKG\">CMKG<\/a>) flying. The ticker managed to gain as much as 156% while the trade value at the end of the day stood at nearly $1.5 million. Things weren&#8217;t quite as optimistic at Green Cures &amp; Botanical Distribution Inc (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=GRCU\">GRCU<\/a>)&#8217;s camp. <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=GRCU\">GRCU<\/a><\/strong> logged a dollar volume of around $935 thousand and lost nearly a quarter of its market cap.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DNA Brands, Inc. (OTCMKTS:DNAX) is a fully reporting company that files its financial statements in accordance with the SEC standards and yet, if you check out the company profile, you&#8217;ll see that it&#8217;s currently&#46;&#46;&#46;<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1399,1400,1398],"class_list":["post-4674","post","type-post","status-publish","format-standard","hentry","category-news","tag-cmkg","tag-dnax","tag-grcu"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/4674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=4674"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/4674\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=4674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=4674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=4674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}