Who knew you could get an eco-friendly haircut. Green Endeavors Inc. offers just that at 2 locations in northern Utah. The Salt Lake area business boasts that they have never gone green; because they began that way. The two locations both take part in Rocky Mountain Power’s Visionary Blue Sky program; utilizing as much renewable energy as possible. One of the locations, based in Liberty Heights is the only salon named as an E2 Business (Salt Lake City businesses devoted to environmental and economic sustainability).
Now, you’re likely asking why a finance writer is so concerned about a haircut? Well Green Endeavors (GRNE) is traded as a pink sheet. This means the company has shares that trade just like the Dow or the S&P. The price for one share: $0.0003. Would numerous people call this a worthless stock to own? Yes. Is it likely a terrible investment for many people, yes. Can money be made from this investment? Yes.
The first question to ask if you are continuing to read is, what is your level of risk aversion? The younger you are the less aversion to risk you likely have. For $300 a person could purchase 1,000,000 shares of GRNE. That $300 can turn to nothing, or if that stock rises to let’s say a penny a share, you would now have $10,000. Is it likely to see this kind or return? No. It is possible however.
HHNS a company also traded as a pink sheet that manufactures mostly wipes for the medical and veterinary field recently rose from $0.0003 per share to $0.002 per share. No one noticed, no one except investors who gained 667% on this movement.
Normally companies who trade at this price are indeed worthless. Don’t get me wrong, GRNE however has been doing well of late. On January 19th they announced that revenues topped $2.8 million in 2011 as well as seeing December revenues up 15% from 2010. November revenues were up 17% from 2010, also 17% in October and the third quarter saw 29% growth compared to 2010. I think it is safe to say this stock will not hit zero in the immediate future.
Some things to keep in mind when dealing with pink slips are that the market is much more inefficient than more known markets. Differences between the ask and bid price can be large. Also, being able to buy and sell immediately is highly unlikely so one must plan when to buy and when to sell. For example, within a 15 minute span HHNS traded at $0.0015, dropped to $0.0009 and rose back to $0.00015. Anyone who waited to see this move was unable to purchase any stocks.
Overall, GRNE looks to being doing all the right things as well as keeping as eye out for being green, this kind of behavior should be supported by investment regardless of the fact that if this business trend continues the stock price will also reflect the strong gains the company is making.
Written by: Benjamin H. Childers
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