Surna Inc.: Why This Hyped Stock May Go All The Way Down To Zero

Summary

  • We have received numerous e-mails touting SRNA from various stock promoters.
  • The recent financials of the company appear to be very bleak.
  • Shares of the company are held by third parties and are ready to be dumped into the market.
  • We have not contacted the company regarding the claims in the article.

Note: This article is about a nano-cap stock (also referred to as a "penny stock"). While all investments are risky, nano-cap stocks are among the most risky. Among nano-cap stocks, the most risky stocks are those, which are subject to promotional campaigns (such as SRNA). They are also among the most illiquid stocks, usually having a large spread between the bid and offer at any given moment. Quite often, it occurs that the illiquidity of these stocks does not allow a trader to rapidly close or open a position. SRNA is no exception to that. SRNA is a nano-cap stock which is traded on the OTC Markets and priced well below the 1$ mark. The readers of this article should be highly aware of the aforementioned facts prior to undertaking any action based on the content of this article.

Introduction

SRNA (SRNA) is a publicly traded company, which has experienced a sharp increase in trading activity during the last few days. In this article, we will outline the facts, which are, in our opinion, related to the sudden increase in the volume of this usually thinly traded, low volume stock.

The Promotion

During the last few days, we have received several promotional emails from various stock promoters touting the stock. Obviously, we do not consider the emails being sent out and the sudden rise in volume and trading activity to be a coincidence.

Emails received on SRNA:

The Reality: Zero Revenue, Negative Income, Bright Future?

As often happens with aggressively promoted companies, a glimpse at the balance sheet is often enough to reveal a grim and bleak picture. It seems that Surna Inc. is of no exception to that rule.

In our opinion, it is clear that the price of SRNA has nothing in common with the stock's true value. If we

This article was written by

The Investor Protection Association (IPA) is devoted to performing research, investigation and publication of information which concerns financial fraud and dishonest stock market practices taking place in companies that trade on stock exchanges in the United States, with a focus on small cap equities and penny stocks. The most important purpose of our service is to educate and help hard working, decent investors by informing them of fraud and manipulation in specific stocks. By performing scrupulous and professional research, uncovering crucial information and publishing it, we may help these investors make a more informed decision and avoid losing substantial amounts of money. On the other hand, our service also caters to sophisticated short-biased traders by providing excellent, in terms of risk-to-reward ratio, trading setups which occur primarily as a result of inflated prices in stocks which are subject to promotional campaigns (so called Pump & Dump).

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.

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