Marrone Bio Innovations, Inc., stock symbol MBII, provides bio-based pest management and plant health products for the crop protection, water treatment, and other target markets in the United States and internationally.
The company went public in July 2013 and has not, or will not, released any financial reports. Marrone Bio's stock was facing imminent delisting from Nasdaq in July, because of unreported financial information. They have an extended deadline, November 9th, to deliver more than a year's worth of financial information to the Securities and Exchange Commission. Marrone Bio also subsequently has reported that its financial reports dating back to late 2013 may not be reliable.
Marrone Bio's IPO dates back to July 2013. In January 2014, the company's stock was as high as $18 and decreased to under $3 by September 2014. The stock has been bouncing between $2 and $4 dollars every since.
The stock price rose from 2.24 to 3.50 between Tuesday and Friday of last week. Of course this gives the impression of possible progress or increased interest in the company and its products and services. However, with an average volume of a little over 31,000, even a trade of 5000 shares would be a significant percentage at this volume. I believe this has more to do with the sudden rise in its stock price over the last several trading days and not its approval by the EPA.
The company's founder and CEO, Dr. Pamela G. Marrone Ph.D. also started AgraQuest, Inc in 1995. Agraquest, Inc. is a private company, which produces the same products and services. Both companies even list the same address. If any of the funding from the IPO and beyond is being used to grow and support the private business then this is certainly a conflict of interest for any shareholder.
In light of the information we have access to one might consider taking a short position. However, you may have a difficult time finding a hedge fund that has any shares in its portfolio to lend.
Due to these concerns, I'd would avoid this company. We feel the stock is not a good buy now, for neither a Bullish or Bearish play. At least not until the "financial reports" are released.