With an impressive amount of stock volume, in October 2019, Aureus Inc. (ARSN) seems to be bottoming-up. When more than 15 million shares change hands per day and the share price is at multi-year lows, an upside reaction is quite likely. We don’t know whether the recently released quarterly report or the new products launched are behind the market reaction. But, one thing is certain; demand for the stock is rising.
RECENT DEVELOPMENTS AND PRICE ANALYSIS
The year 2019 has been a terrific period for the company in terms of stock catalysts. In February, ARSN released the acquisition of Yuengling’s Ice Cream, which provided the company access to the $70.8 billion global ice cream market. The announcement made the stock price spike up from $0.01 to more than $0.03. Some investors appeared to triple their money in this rapid market move.
In March, the company reported that Supermarket chain Hyvee became its customer, which also resulted in an increase in the stock and stock volume. With that, in June, the market saw the largest increase in volume after a debt reduction of $3 million. On top of it, in the same month, the company released eight flavours of its high protein / lite ice cream. Clearly, with a new business model, less financial risk and more products, the management is going in the right direction.
While the share price declined from the $0.01 mark, September was an exciting month in terms of announcements. Firstly, we got to know that the company was granted approved vendor status, which could mean that Yuenglings Ice Cream could be sold at 20,000 additional retail locations.
In addition, it seems that smart individuals want to join the company. In June, James F. Cunha, a well-known industry veteran, decided to work for Aureus, bringing more than 40 years of expertise in the grocery industry.
With that, Mr. Cunha is not the first individual to identify the company’s business potential. In August, Fruci and Associates accepted to prepare the company’s financials to bring it into SEC fully reporting compliance. Finally, Hanover International, Inc., capital markets advisor, is now offering institutional shareholder relations strategies.
On October 21, 2019, the new financial statements were released, which created an increase in both stock price and stock volume. With this in mind, let’s understand the new financial figures. In the quarter ended July 31, 2019, cash spiked up more than 70x as compared to the numbers released in October 2018. Besides, the asset/liability ratio also increased from 0.04x to 0.8x. Yes, the company’s book value per share is still negative. But, the market should be appreciating that company received new funds in the form of loans and a line of credit.
Currently trading with a market capitalization of $0.9 million, ARSN has a share count of 158.4 million shares and a float of 91 million. With this in mind, and the large amount of new announcements released, Aureus Inc. is a low float runner, which will most likely exhibit large share price volatility. Stay tuned because we will continue assessing the company’s development. The story does not end here.
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Disclosure: We hold no position in Aureus Inc. either long or short, and we have not been compensated for this article.