Despite the announcement of fairly positive news from the company on Friday, the Hiru Corporation (OTCMKTS:HIRU) stock actually declined sharply and ended the day with a decline of as much as 21%. The company announced that it had been successful in leasing the fourth facility for the purpose of bottling water.
Trading Data
On Friday, HIRU stock slumped 21% to $0.0034 with more than 39.08 million shares, compared to its average volume of 6.31 million shares. The stock moved within a range of $0.0030 – 0.0043 after opening trading at $0.0043.
Hiru Corporation – Building of Fourth Facility
This facility is situated in Glendale, Arizona and spans across an area of 51000 square feet. The facility if large enough to offer space to as many as 5 water bottling lines and on top of that, there is also going to enough space for a finished goods storage.
However, that is not all. The facility also boasts of as many as seven commercial delivery truck loading areas and hence, delivering the products to the clients is not going to be a problem for Hiru. While the development was a significant one and could potentially lead to long term boost, it did not sit well with investors.
As a result, the stock suffered from a swift selloff and went down to that degree. It is going to be interesting to see if the stock can actually manage to make a turnaround this week.
Key Quote
Ms. Kathryn Gavin (President and CEO of the Company), states…” We are moving very fast to meet the demand from our current purchase orders and additional purchase orders we expect to receive as our co-packing relationship with our major client continues solidify and mature while still growing quickly quarterly. As we have stated in the past, we expect the demand for our products to grow by double digits each quarter moving forward for the foreseeable future. We expect the first new Bottling Line in the New Facility to be completed by June 20. This New Facility is being built to meet the future negotiated purchase orders that are expected to be received as soon as the New Facility completely built out. We are growing at a fast pace and fully expect each quarters top line revenue moving forward to increase significantly for the next two calendar years.”
Technical Data
HIRU stock is trading above the 20-Day and 50-Day Moving averages of $0.0050 and $0.0058 respectively. However, the stock is trading below the 200-Day moving average of $0.0077.
