[[tagnumber 0]][[tagnumber 1]]After some positive action in mid–August we saw Cannabis Science Inc (OTCMKTS:CBIS) go up and down the charts. Despite the rollercoaster–like movement of the company stock, the ticker did start the month with a massive loss compared to the heights it reached previously.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Then it began to climb. This was rather unusual, especially when considering all of the red flags surrounding the company. One of them was the horrible financials and the lack of a report for the second quarter of the year. Last Friday that report finally came and showed that the situation has gotten even worse.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 9]] [[tagnumber 10]]cash: $2,504[[tagnumber 11]] [[tagnumber 10]]current assets: $177,251[[tagnumber 11]] [[tagnumber 10]]current liabilities: $4,233,564[[tagnumber 11]] [[tagnumber 10]]quarterly revenues: ZERO[[tagnumber 11]] [[tagnumber 10]]quarterly net loss: 6,111,388[[tagnumber 11]] [[tagnumber 20]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Looking at these numbers we see that [[tagnumber 24]]CBIS’[[tagnumber 25]] financial situation is shaping up to be far worse than that of the previous year. While the company has stopped generating even the tiny revenues that it managed to record in the end of last year we see that the massive net loss is growing even bigger.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]In light of this, the 10.66% drop that the ticker experienced in Friday’s session wasn’t that surprising. As the ticker fell for a close at $0.0285 we saw a total of 4.31 million shares change their owners and generate $130 thousand in daily dollar volume, the biggest in around three weeks of trading.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We see that [[tagnumber 24]]CBIS[[tagnumber 25]] is doing an effort to stabilize in today’s trading, but nothing is certain, especially when you consider the horrible financials and the massive dilution that the stock and its shareholders have endured. [[tagnumber 2]]
[[tagnumber 0]][[tagnumber 1]]Eventure Interactive Inc (OTCBB:EVTI)’s stock has had quite a rough ride so far this year. As the stock began to descend more steeply in the middle of the year we saw the volumes begin to increase.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Last month the ticker made an attempt at going up the charts. It did manage to regain some of the lost value, but the final days of September were rather disappointing, with [[tagnumber 6]]EVTI[[tagnumber 7]] recording a total of six consecutive sessions in the red, that obliterated almost all of the gains.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This isn’t surprising considering the red flags surrounding the company. Firstly, there is the matter of the poor balance sheet that [[tagnumber 6]]EVTI[[tagnumber 7]] has to offer. Here is what the company had at the end of the second quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 17]] [[tagnumber 18]]cash: $13 thousand[[tagnumber 19]] [[tagnumber 18]]current assets: $28 thousand[[tagnumber 19]] [[tagnumber 18]]current liabilities: $3.08 million[[tagnumber 19]] [[tagnumber 18]]quarterly revenues: $348!!![[tagnumber 19]] [[tagnumber 18]]quarterly net loss: $2.65 million[[tagnumber 19]] [[tagnumber 28]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Apart from the laughable numbers contained in [[tagnumber 6]]EVTI’s[[tagnumber 7]] report we should also consider the massive dilution that the stock and its shareholders have had to endure in the past year. As we wrote in our previous article, the stock was diluted by over 2,500% before the first nine months of this year had passed.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Still, that didn’t stop the ticker from climbing an incredible 25% in Friday’s session for no apparent reason. As [[tagnumber 6]]EVTI[[tagnumber 7]] was going for a close at $0.002 we saw a total of 56.68 million shares change their owners and generate $107 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]With a lack of a revenues–generating product at this time, however, [[tagnumber 6]]EVTI[[tagnumber 7]] seems quite risky. You should be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]
[[tagnumber 0]][[tagnumber 1]]The stock of Guided Therapeutics Inc (OTCBB:GTHP) has shown quite a bad chart performance since the beginning of the year. The ticker was sliding even before that, but now, it is doing so on increased volumes and the descent has become steeper.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The company itself isn’t doing that badly. Last month brought some good news. First, the company announced that the FDA has agreed for a meeting in which to discuss the filing of an amended pre–market approval application for the company’s LuViva Advanced Cervical Scan and then on September 30 we got the news that [[tagnumber 6]]GTHP[[tagnumber 7]] has shipped four LuViva units as a part of a $14 million purchase order from the Turkish Ministry of Health.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This is great news, especially when we consider that G[[tagnumber 6]]T[[tagnumber 7]]HP hasn’t been doing that well with the revenues on a quarter–over–quarter and year–over year basis. Still, the financials don’t look that bad.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 17]] [[tagnumber 18]]cash: $2 million[[tagnumber 19]] [[tagnumber 18]]current assets: $3.3 million[[tagnumber 19]] [[tagnumber 18]]current liabilities: $4.8 million[[tagnumber 19]] [[tagnumber 18]]quarterly revenues: $103 thousand[[tagnumber 19]] [[tagnumber 18]]quarterly net loss: $1.7 million[[tagnumber 19]] [[tagnumber 28]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Still, the good news from last month and the rather decent financials didn’t stock [[tagnumber 6]]GTHP[[tagnumber 7]] from continuing its slide down the charts. Even the most recent press release didn’t have any positive effect on the company stock.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Instead, we saw the ticker drop to a new 52–week low. The last session before the weekend ended with a 17.96% loss for [[tagnumber 6]]GTHP.[[tagnumber 7]] As the ticker went on to close at $0.0443 we saw a total of 2.05 million shares change their owners and generated $87 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]GTHP[[tagnumber 7]] is still slipping today so it will be best if you do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]
On September 18, High Performance (OTCMKTS:TBEV)’s shareholders were finally given a reason to smile. The company’s long awaited Performance Punch was on the market and it was available for everyone to buy. That wasn’t the latest piece of good news to come out of the residential house that serves as TBEV‘s headquarters.
Ten days ago, the company announced that the initial inventory Amazon ordered had run out after just 48 hours which earned the Performance Punch a #1 Best Seller badge in the nutrition category. Put simply, TBEV‘s sports drink is turning out to be a roaring success.
Unfortunately, the same can not be said about the stock. TBEV is managing to keep its head above the $0.001 per share mark which was unthinkable until a few months ago, but that is hardly awe-inspiring considering the positive news.
Clearly, something is holding the stock back. Let’s see what.
As we mentioned already, the company headquarters seems to be located in a residential house which doesn’t exactly solidifies TBEV‘s credibility. In fact, this could be enough of a reason for some to simply walk away.
The latest 10-Q doesn’t really inspire any confidence, either. In fact, it’s pretty ugly:
- total assets: $308 thousand
- total liabilities: $4.1 million
- NO revenue
- quarterly operating loss: $283 thousand
These sort of results could also put you off and when you put the dilution into the equation, things start to look really nasty.
In February, TBEV effected a 1 for 10 reverse split which brought the O/S count down from around 2.1 billion all the way to 212 million. Then, the printing press was kicked into high gear. Lots of convertible debt was turned into shares and as a result, in June, just over three months after the split, the O/S count was back at over 2.2 billion. The number of authorized shares was raised to 5 billion recently and there was no shortage of convertible debt still outstanding when TBEV filed its latest report, so the chances of a higher O/S count at the moment are far from slim.
The people at the helm seem to realize what the problem is, however, and they appear to be determined to solve it. They have said time and again that they have borrowed absolutely no money under convertible note agreements since the beginning of the year, and they announced on Friday that they might just be able to pay off some of the currently outstanding toxic debt with cash.
An entity called GHS Capital has apparently agreed to extend a $5 million line of funding over the next two years and TBEV said that some of the money will be used for extinguishing outstanding notes. This definitely sounds nice. If the company manages to tidy up the balance sheet and if the dilution stops, the news might take the ticker sky-high.
At least that’s what people are hoping for. On Friday, their enthusiasm managed to push TBEV 20% up to a close of $0.0012. There is one thing missing, however.
The press release didn’t give us the actual terms of the equity line, but it did say that it is all dependent on an S-1 registration form which has yet to be filed. Filing and having an S-1 statement declared effective is not the easiest thing in the world. In fact, it often takes quite a lot of time and considering the huge amount of toxic debt TBEV has, time might not be abundant.
About thirty-five minutes after the opening bell, TBEV is sitting at $0.0011 (8% in the red).
After sitting silent for more than a few months, Mike Statler, the fictional name of Stock Tips’ co-editor, first reminded everybody of the outfit’s existence back in June when he said that his “next huge pick” is coming. He then teased his subscribers for a while and he finally unveiled it yesterday. It’s called Safer Shot, Inc. (OTCMKTS:SAFSD).
Stock Tips is without a doubt one of the more influential promotional newsletters around and its picks are often eagerly awaited. When people saw SAFSD, however, many were a bit underwhelmed.
It all looks like a normal Stock Tips pump at first glance. The emails look the same, the longer-than-necessary video is there too, and so is the budget which, at $1.9 million, sounds just as far-fetched as Mr. Statler’s promises of wealth and fortune. Yet, when you look at SAFSD‘s chart, you’ll see that the stock is firmly anchored to the $0.0001 per share mark. A price as low as this is extremely unusual for a Stock Tips pick.
Mr. Statler says that there’s a perfectly good explanation for this. According to his emails and videos, being glued to the bottom means that SAFSD has limited downside potential and that even the smallest surge in the right direction will provide investors with an opportunity for a big profit. He also says that unlike the rest of the $0.0001 companies, SAFSD is actually a solid entity.
We’re not sure about the latter. In fact, although the business plan and the demonstration videos look promising enough, SAFSD have yet to monetize on their less-than-lethal weapons. The latest financial report is pretty ugly as well:
- current assets: $443 in cash
- current liabilities: $110,216
- quarterly revenues: $20,000
- quarterly net loss: $9,134
The report says that the revenues you see above don’t come from selling products, but from “extraordinary gains” and it then gives absolutely no explanation as to what those gains consist of. We reckon that the rest of the statement is so abysmal, that it simply requires no further comment. It isn’t the only thing keeping SAFSD anchored to the bottom, however. The share structure is also playing a part.
In January, SAFSD effected a 1 for 1,000 reverse split which pushed the O/S count down to less than 1 million. Unfortunately, this state of affairs wasn’t going to last. The company then printed quite a lot of stock which pushed the number of issued and outstanding shares back to a little more than 1.1 billion in no time. On September 24, in a move that is extremely hard to explain, the company effected its second stock split of the year – this time a 1,000 for 1 forward one.
This means that the ticker currently consists of five symbols and it also means that at the moment, there are (make sure you’re sitting down) 1,160,916,581,000 shares of SAFSD common stock issued and outstanding.
With an O/S count as huge as this and with a market cap that sits at a little over $116 million, SAFSD‘s stock will have a really hard time moving north. Mr. Statler is right about one thing, though – if the ticker manages to go up even a pip, it will provide investors who have timed their entry points well with an amazing profit opportunity.
Then again, you mustn’t forget that there will be more than a few things that could be holding it back. More specifically, there could be exactly 100,000,000,000 things that could keep it stuck at $0.0001.
Here’s a more detailed explanation: in March, an entity called Acquest Capital Group, Inc received a whopping 100,000,000 shares as a conversion of debt. Thanks to the colossal forward split from last month, Acquest could now be holding on to as much as 100,000,000,000 shares of common stock. And they could be eager to unleash them on the open market.
Vape Holdings Inc (OTCMKTS:VAPE) share prices reached a nickel on Friday, after nearly 13 million of the company’s shares of common stock changed hands.
The buying frenzy was made possibly by the corporate update that VAPE published. Investors were more than happy to jump on the ticker once that hit the web – but will they regret getting on the hype train before long?
VAPE is hardly the most stable of tickers, even by the extremely lax standards of the OTC Markets – and there are a couple of very good reasons for why that is so. For starters, its financials look less than impressive, even by the aforementioned low standards:
- Cash – $134 thousand
- Current assets – $818 thousand
- Current liabilities – $1.3 million
- Quarterly revenues – $282 thousand
- Quarterly net loss – $436 thousand
And that’s not even the biggest threat to investor value to be found when looking into the company’s affairs. According to its filings, VAPE currently has upwards of $1.6 million worth of convertible notes, that could be turned into stock at various discounts and flood the market, plunging the ticker into the depths at any point in time.
The fact that since the end of August $227 thousand worth of convertible debt has been turned into more than 5.1 million shares is further proof that investors should be on their toes around VAPE. As of September 29 the company had 18.3 MILLION shares outstanding – and since its shares authorized are 1 BILLION, there’s nothing to stop noteholders from drowning investor value in dilution at any time they see fit.
Thus, while VAPE‘s current volatility does certainly present an opportunity to make a quick profit, if considered in the context the company’s other circumstances, said volatility turns out to be nothing less than a double edged sword.
Last week wasn’t particularly eventful for Bioelectronics Corp (OTCMKTS:BIEL) with their stock closing at $0.0006 for three sessions in a row. On Friday, however, the ticker simply exploded. Investors shifted over 458 million shares bringing the dollar value for the day to $334 thousand. The buying pressure pushed BIEL more than 66% up the chart and they closed at exactly $0.001. Is the positive momentum going to survive the weekend though?
Well, Friday’s surge wasn’t supported by a new PR published by the company. In fact, the last press release was issued on September 21 and it wasn’t particularly exciting. The financials of the company also leave a lot to be desired. Despite generating respectably revenues for the second quarter of the year BIEL‘s balance sheet has remained quite depressing with:
• $29,203 cash
• $668 thousand total current assets
• $5.46 million total current liabilities
• $675 thousand revenues
• $732 thousand net loss
Furthermore, after issuing 1.6 billion shares just for the first half of 2015 BIEL‘s outstanding shares had reached 7.99 billion out of the 8 billion authorized. Since 2009 the company has been increasing its authorized shares once per year but this year that was not enough – despite approving the increase to the aforementioned 8 billion shares earlier in 2015 BIEL had to further increase their A/S to 9 billion shares. How long will it take the company to run out of room for the issuance of new shares this time though?
If the past history of the company is any indication it wouldn’t be that long. BIEL has been financing its activities primarily through convertible debt issued to related parties – mostly the family members of the company’s president. The latest quarterly report states that the related party loans could be turned into 7,178,011,959 shares if converted entirely.
With so many red flags around the stock what could explain Friday’s massive gains? Tomorrow the Food and Drug Administration is going to issue “a final order to reclassify shortwave diathermy (SWD)” from a class III device into class II. The hype could propel BIEL‘s further up but the volatility of the stock shouldn’t be underestimated. Do extensive due diligence before committing to any trades.
In early trading today BIEL is soaring even higher currently sitting 90% in the green at $0.00190.
Last Thursday the stock of Marilynjean Interactive Inc (OTCMKTS:MJMI) closed at $1.08 per share for a gain of nearly 6%. Although on Friday investors were far more interested in the company with the daily volume reaching 153 thousand shares compared to the 33 thousand from the previous day the increased activity did not translate into another positive close. In fact, MJMI finished the trading day completely flat at $1.08.
Early in the morning today the company issued a new PR but will it be enough to push them further up the chart? Well, despite being rather lengthy the press release contained almost no substantial information. It revealed that MJMI have entered into advanced discussions with a provider of Bitcoin-based remittance services. The name of this entity wasn’t disclosed and the only provided details being that it has a well-established brand and multiple Bitcoin ATMs in the Philippines.
MJMI may be trying to move forward with their plans but investors should be extremely careful. Initially the company planned to acquire, explore and develop prospective resource properties but after a couple of years they decided that this wasn’t working. So, MJMI moved on and started selling baby clothes, accessories and toys through an e-commerce platform. The outcome remained the same though and after another change in plans they are now in the Bitcoin business. The problem is that currently MJMI‘s financial resources are almost non-existent. At the end of June the company had:
• $5,571 cash
• $7,833 total current assets
• $198 thousand total liabilities
• ZERO revenues
• $1676 net income
The management has taken some positive steps by cancelling 106 million convertible shares in September followed by the cancellation of 21 million free trading shares at the start of October. As a result the company’s fully diluted share count was reduced by over 42%. Keep in mind one thing though – the PR didn’t reveal if the 21 million shares were part of the 42,385,500 units priced at $0.01 each that were issued back in July 2012. The units consisted of 1 common share and a couple of warrants but by now the warrants have expired without being exercised. The shares on the other hand could still allow their owners to reap millions in gains if they unleash them on the open market at the current price of the stock.
The red flags surrounding MJMI are extremely serious not to mention that even with the recently cancelled shares the market cap, which at the moment stands at more than $186 million, is completely disconnected from the underlying fundamentals of the company.
Last week the stock of MyEcheck Inc (OTCMKTS:MYEC) registered four consecutive sessions ending in the green. On Friday the ticker closed with a gain of nearly 9% at $0.0194 on its biggest daily volume since the end of August. The last time MYEC traded at its current price was way back in May.
Investors certainly have reasons to be excited. On September 9 MYEC announced a processing service agreement with PacNet Services and 21 of PacNet’s 130 business customer have began processing with MYEC as of the date of the PR. More recently the company has also entered into electronic check agreements with Charleston Enterprise Group and TradeRocket.
Equally as important was the fact that last Thursday MYEC‘s Form 10 was finally approved by the SEC. The company first filed a Form 10 a year ago in October but had to withdraw it due to the lack of audited financials for the entire 2014. Well, now everything has been finally completed and as stated in the official PR as of tomorrow MYEC should become a fully reporting company. This will boost MYEC‘s credibility substantially but is it enough to justify the company’s current market cap of over $75.3 million?
Especially when you take a look at the last financial report according to which as of June 30 MYEC had:
• $22,850 cash
• $154 thousand total current assets
• $2.1 million total current liabilities
• $181 thousand revenues
• $1.6 million income
The limited resources of the company have forced it to rely primarily on the issuance of convertible debt in order to fund its operations. As of June 30 there were 4.07 BILLION outstanding shares out of the 4.9 BILLION authorized while over $800 thousand of the reported liabilities consisted of convertible notes. Millions of shares have been issued at severely discounted prices – back in April 40 million shares saw the light of day at $0.001 each. In July MYEC restructured some of its outstanding debt but as part of the new agreement they had to make three $30,000 payments. The Form 10 states that currently MYEC is in default on these payments.
The identity of MYEC‘s African bank partner is still a mystery. An official PR was supposed to be published back in August but after several delays the PR is still missing. According to a post on MYEC‘s Facebook page they will receive “an update from Africa” today.
Although MyEcheck are moving forward with their plans the numerous delays, the depressing financials and the bloated O/S count must not be taken lightly. MYEC are attempting to recover 1.44 billion shares through a lawsuit but so far they have successfully received only 275 million. Even if you believe in the potential of the company you should still use caution when putting any money on the line.
Nano Mobile Healthcare, Inc f/k/a Vantage Mhealthcare Inc (OTCMKTS:VNTH) has seen worse days. Up until about a week ago, it was smashing through 52-week lows on a daily basis. The volumes were tiny and the slide which had been going on for quite a while suggested that the ticker could soon find itself in the triple-zero range – something that was unthinkable until a few months ago.
Then, however, after hitting its all-time lowest close of $0.0017 on October 6, it bounced. The run isn’t quite as explosive as you’d expect from a sub-penny OTC ticker, but after three consecutive green sessions, VNTH closed last week’s trading with a price of $0.0024 per share. The volumes are growing as well which goes to show that more and more people are ready to put their money on the line. Why?
That’s a tricky question. VNTH‘s latest press release is more than a month old now, there are no new filings, and there isn’t even a paid promotion. So, the factors that normally push penny stocks in the right direction are nowhere to be found. There seems to be a split opinion among investors around the reasons for VNTH‘s surge. Some say that the bounce was caused by technical factors while others reckon that it’s all due to an upcoming press release that, rumor has it, is going to be extremely positive.
Whatever the reason, people are willing to buy shares which means that we must now take a look at the company and find out if there’s anything worth keeping in mind. Sadly, information is not exactly abundant.
The company said a couple of weeks ago that it will be late with its 10-K for the period ended June 30 which means that the latest financials are now more than six months old. They’re quite alarming too:
- cash: $69,972
- current assets: $80,500
- current liabilities: $1,525,465
- NO revenues since inception
- quarterly net loss: $673,676
The belated 10-K also means that investors aren’t sure what the share structure is. What they do know is that there were 217 million shares issued and outstanding at the end of May and they also know that last month, the management team retired about 117 million of them. Theoretically speaking, the O/S count should currently be sitting at around 100 million, but the huge amount of convertible debt outstanding at the end of March suggests that it might be a little bit higher than that.
As is often the case, the toxic notes are convertible into common shares at discounts that range from 42% to 50%. Some favorable conversion terms, you have to agree, and, naturally enough, the note holders are taking advantage of them. On April 6, for example, when VNTH‘s market price hovered between $0.047 and $0.059, a total of $20,000 worth of debt was converted into 1,333,333 shares of common stock which pushes the conversion rate down to just $0.015 per share.
So, to sum it up, investing in VNTH is not exactly risk-free. In fact, at least for the time being, the only thing that could draw you to the stock is the fact that the technology the company wants to commercialize was first introduced by none other than NASA. The infrequent progress updates and the horrifying balance sheet, however, suggest that the products are not on the brink of hitting the market. Unfortunately, as we established already, the same can not be said about some discounted shares that are floating around.