Pink Sheets Markets Today:
Aug 22, 2016 total dollar volume
By Boyan Angelov
Aug 29, 2014

Unique Pizza & Subs, Corp. (UPZS) Corrects After Climb

Unique Pizza & Subs, Corp. (UPZS) recently ended four consecutive sessions in the green, making for a 143,2% increase in the price of UPZS shares. Yesterday, the ticker suffered a 17% correction, bringing the stock down to $0.0406. UPZS continues to trade at a high volume after registering the record high of $387,9 thousand trade value in Wednesday's session.

The company recently announced an intriguing addition to its product line. In a press release from August 12, UPZS disclosed that it is currently developing a marijuana pizza, a product that contains cannabis. In an update from the next day, the company stated that the product would contain cannabis-infused pizza sauce.UPZS_chart.png

James Vowler, UPZS' CEO, commented on the product development, stating that the company has acknowledged the increased demand for marijuana in the state of Colorado and plans to utilize the skills of Dr. Reddy for creating a unique pizza.

The increased interest in the marijuana industry that has caused many companies to venture into the sector seems to still be going strong, as UPZS enjoyed a climb up the charts after the news about the product came out.

A more in depth look into UPZS should be done, before getting on the band wagon. The reason for the improvement of the company's stock value before recent announcements was a reverse split made on March 6. Since the decision was made, there have been several issuances that increased the number of outstanding shares to 80 million by August 21.

UPZS_logo.pngOn August 27, a press release informed of UPZS' decision to retire 30 million common stock shares. This would make the number of O/S 50,5 million. This decision was accepted with enthusiasm, as UPZS' volume soared to 7,9 million shares trading hands on a high trade value. Still, the next day saw a sharp correction in the company's share price.

Does UPZS have the potential to develop a prospering business? Above all, a company needs a strong financial backing. The latest quarterly report for the period ended June 30, 2014 contains the following on UPZS:

  • Cash: $8,945
  • Total current assets: $1 million
  • Total current liabilities: $713,2 thousand
  • No revenues
  • Net loss: $27,5 thousand

The biggest reg flag around UPZS is the lack of revenues, considering which sector the company operates in. With its low cash reserves, the company may have difficulty financing its ventures. In the past quarter, UPZS has ended at a loss.

Looking at UPZS' recent history, there is uncertainty stemming from previous issues the venture has had and the current financial state the company is in. Doing due diligence before investing in pink sheet penny stocks is always a wise decision.

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