Nutriband Inc. (NASDAQ: NTRB) is a biotech company. However, it didn't stop them from releasing an AI headline on Thursday. But it's not what you think. Regardless, promoters have been pounding the table hard. Are they right or is this a pump you should avoid? Nutribrand Inc. (NASDAQ: NTRB) - 1-month trading range: $2.20 - $5.15
- Typical average daily volume: 50K
- Float: ~ 5 million
Nutribrand Inc. Nutriband, along with its subsidiary companies, is on a mission. Like a team of inventors, their prime objective is to leverage cutting-edge drug delivery systems and devices to enhance patient outcomes. They're focusing their efforts like a laser beam on a pressing global problem - the opioid epidemic. Transdermal medications, those akin to a patch applied to the skin, which contains fentanyl and other opioids, play an unfortunate part in a substantial number of opioid-related fatalities annually. It's akin to navigating a treacherous labyrinth with no escape route currently on the map. But hope is on the horizon. In collaboration with their clinical partner, 4P Therapeutics, they've developed a revolutionary technology named AVERSA. Much like designing a safer, more effective map through the perilous labyrinth, they hope AVERSA will make taking these medications safer. However, before this potentially life-saving technology can be implemented, it must earn the approval of the FDA. The FDA acts like the regulatory bodyguard, ensuring only safe and effective treatments reach the public. If AVERSA can pass this stringent review, it has the potential to not only rewrite the safety standards for these medications but also to save numerous lives each year. Like a lifeboat in a tempest, AVERSA promises a safer passage through the storm of the opioid crisis. Lately the company has been trying to take advantage of the AI trend… No, it's not what you think. The company announced on Thursday the launch of its "AI Tape", a sports recovery tape band. 
Source: Nutribrand Maybe day traders read the headline and see AI, and don't bother to read the rest. Needless to say, you can find the product on Amazon. Financials Source: Stock Analysis Like many of the stocks I cover for you, NTRB is a mixed bag. On the bright side, revenue is growing nicely. It has gone from $940K in 2020 to $2.08 million in 2022. In addition, the company's gross profit has doubled during the same period. However, when dig deeper into the numbers it starts to look ugly. For example, NTRB has a profit margin of -231.3%. But that's not all… Its operating margin is -215.5%. Management looks to be pretty bad too…The company's return on assets stand at -27.1% and its return on equity is a brutal -51.2% Luckily, most people who trade these types of stocks aren't in them because of the fundamentals. They're looking for a juicy story…that's where the promoters step in. Promoter Activity This stock was getting pumped hard via chatrooms, email, and text message. Allow me to sum up some of the promoters main points. - Bullish price action, the stock is up over 89% in the last month.
- The launc of AI Tape Brand
- The float is rather small, around 5 million shares
- One analyst has a $10 target on the stock.
- AVERSA could be a game changer
- The company's revenues have been rising substantially over the last four years
- The stock is potentially undervalued given its pipeline and prospects
One of the promoters was paid $15K to pump the stock from 7/26 to 7/28. Another was paid $25K to spread the word from 7/26 to 7/27. And a third received $25K to highlight the stock from 7/24 to 8/04. Straight to the Facts You've got to be very careful when a stock is being pumped this hard… As someone who's been doing this a while…you can smell a stock offering around the corner. Can the stock rise until that happens? Of course, anything can happen. But more than likely traders who stick around too long will get burned. Despite the nice runup in the stock on Thursday, volume couldn't even crack 1 million shares. There's just too many red flags to ignore here. And because of that, extreme caution is needed with this stock. Always at your service, Baron Von Stocks | 
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