Respect Your Universe (RYUN) recently turned three years old. Still in it’s development stage, the company just reported $1,407 in sales. Paid stock promoters would have investors believe the company is on the path to becoming “the next LULU” but is it?
The company has spent approximately $2,300,495 in investors cash, including $383,390 in “marketing” expenses to generate $1,407 in sales. It has lost millions of dollars over a fairly long period of time and has virtually nothing to show for it. The federal government is probably more efficient at spending tax money than RYUN is at spending investor money!
By it’s own admission, the company will run out of money before it can ever achieve profitability. And, it has almost no chance to achieve it’s lofty 2011 projections and it is almost inconceivable they will ever meet their future projections.
To top all this off, the Securities and Exchange Commission declared an S-1 registration statement effective, allowing shareholders who own 7.7 million shares to sell.
At $1.25 per share, Respect Your Universe has a market value of almost $50,000,000. Anyone who owns or buys this stock should consult with a professional financial adviser or have their head examined.
Good luck RYUN investors!
Categories: Penny Stocks