Yesterday, The Bowser Report issued a daily mover alert on FitLife Brands (FTLF), which closed up 10% or more today.
Editor’s Opinion: We are attributing FTLF’s move today to volatility. With only 1,637 shares traded, there was barely any action as only a handful of trades were executed.
Currently, FTLF is in Category 3 with a Bowser Rating of NR. Most recent quarterly sales fell 16%, while earnings dropped 66%.
Recently, the company merged with iSatori, which resulted in the issuance of about 2.3 million FLTF shares to iSatori stockholders. Management cites that this merger will result in “increased distribution, potential growth capital and enhanced liquidity, and professional brand management, furthering the growth and development of [FitLife’s] brands.”
FTLF decreased the number of shares that iSatori shareholders received before the close of the merger due to a decrease in iSatori’s working capital and an increase in its net debt. It remains yet to be seen how this merger will affect FTLF’s financials.
For now, we recommend holding on to FTLF if you own it, and holding off on purchasing if you don’t. Remember to always follow the Game Plan.
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