Penny Stocks: Might Be time To Watch DNA Brands (DNAX)

The penny stock DNA Brands Inc (OTC: DNAX) should be added to your list of stocks to watch after filing their positive growth 10-K last Friday. DNAX.OB closed flat in the last trading session at $0.34 on volume of 49,605. The penny stock is trailing its 10, 20 and 50 day moving averages at its current share price.

DNAX reported revenue of $1,191,688 for the year ended December 31, 2011 compared to $1,168,461 for the year ended December 31, 2010. Gross margin for the year ended December 31, 2011 was $391,648, compared to $299,387 for the year ended December 31, 2010. Excellent to see that Gross Margin grew nearly $100 thousand on revenue growth of just $23 thousand.

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DNAX Stock Snap Shot:

Market Cap: 15.06M
Enterprise Value: 16.57M

52-Week High
(Apr 29, 2011): 1.25
52-Week Low
(Jan 24, 2012): 0.20

Avg Vol (3 month): 58,233
Avg Vol (10 day): 54,813
Shares Outstanding: 44.28M
Float: 38.07M

DNAX already had the DeCA, Defense Commissary Exchange, and the AAFES, Army & Air Force Exchange Service, approve their DNA beef jerky meat snack products. After adding the NEXCOM, Naval Exchange Service Command, to their list of military operations selling their products, DNAX recorded a 2% growth in revenues for 2011 from fiscal 2010, but a 32.9% increase in gross profit.

DNA Brands is a maker of DNA Energy Drink® and DNA meat snacks.

To view the SEC filings for DNAX, click here.

Bottom Line: DNA Brands Inc., DNAX, seems to be on the right track but has no exposure in the pit of penny stocks, dying for someone to add them to their watch list. The company announced yesterday a letter agreement with Charles Morgan Securities, Inc., NY, NY, a licensed broker-dealer, whereby they have agreed to provide DNAX consulting, strategic business planning, financing on a “best efforts” basis and investor and public relations services.

This agreement contemplates an initial private offering of up to $1.5 million, with a second offering for an additional $2.5 million. In other words – a pump is coming in the near future so look for early entry points.

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