Stockhouse Short Report: Why Stevia Nutra may leave bitter aftertaste
This heavily promoted Newfoundland company has yet to live up to its billing as either a potential takeover target or cinderella stock.
When it was touting Stevia Nutra Corp. (OBB: STNT, Stock Forum) in a stock alert last year, M3 Profit Accelerator boasted that the Newfoundland company could be one of the biggest stocks of 2011.
It also promised that the stock would hit $7.70 by December 1st, 2011, potentially going even higher if the company became the target of a bidding war involving Coca-Cola Co. (NASDAQ: COKE, Stock Forum), PepsiCo Inc. (NYSE: PEP, Stock Forum) and Nestle SA.
But a quick glance through the footnotes reveals that M3 Profit Accelerator's alert is actually a paid advertisement that cost $400,000 to produce. The disclaimer at the bottom also says M3 received a $3,000 editorial fee to publish it.
So it's hardly surprising to find Stevia trading at 60 cents this week after tumbling from $1.12 at the end of May, leaving the company with a market cap of $50 million, based on 76.5 million shares outstanding. The 52-week range is $1.12 and 54 cents.
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