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A company expanding its product portfolio is usually viewed as a positive development – yet Ami James Brands Inc. (OTCMKTS:AJBI<\/a>) crashed a horrifying 50% yesterday, after announcing that it is doing just that. So how could that happen? <\/p>\nEasy – even the most suspicious tickers can, on occasion, attract attention to themselves and be carried upward for a while, before crashing to the ground, burning out and smoldering away to illiquid obscurity.<\/p>\n
AJBI<\/a> <\/strong>had seen little to no trade for a long time, then gained a bit of traction with a couple of announcements, and now it is headed right back where it started from. <\/p>\n And, as sad a turn of events that might be, one could argue that it is entirely fitting, for reasons that become obvious after a bit of due diligence.<\/p>\n Suffice it to say that the company’s latest financial report looked like this:<\/p>\n Those numbers clearly illustrate why a correction of AJBI<\/a>’s <\/strong>$14 MILLION market cap might have been in order – but the red flags don’t really end there, either.<\/p>\n Seasoned investors well know what to look for when examining the filings of dubious OTC markets pinksheets companies – and one of the first things they need to check is the company’s toxic debt. Now, admittedly, AJBI<\/a><\/strong> doesn’t have a lot of notes outstanding, but the debt that is out there can be converted into common stock at rates like:<\/p>\n or<\/p>\n\n
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With this in mind, it should be pretty obvious why