Be Active Holdings, Inc. (OTC:JALA) Pumped for $2.2 Million

Traders seem to have got very excited about Be Active Holdings, Inc. (OTC:JALA) over the last couple of trading sessions. The huge increase of volume and JALA climbing up the charts is easily attributable to a massive pump, funded with $2.2 million.

Social Stock Report dot com have launched a very neatly organized promotional page for JALA, setting a price target of $1.47 for the stock. The promotion’s disclaimer states that Cloud Focus Group (CFG) is working with a promotional budget of $2,200,000 that is obviously being put to good pumper use, considering the movement of the stock. CFG further disclosed purchasing 5 million shares of JALA that will be sold “at anytime” (sic).

JALA was f.k.a. SuperLight, Inc. (OTC:SUPU), a failing venture that had zero total assets and generated no revenue in Q3 of 2012. In January 2013, JALA reverse merged with Be Active Brands, Inc., a private company, and continued operations as Be Active Holdings, Inc. The company provided a consolidated report, giving investors an idea how the merger changed the financial side of the business. Sadly, the numbers were abysmal. As per the 8-K filing the private company Be Active Brands, Inc. showed the following:

• $131 in cash a/o Sep 2012
• $1 million in current liabilities a/o Sep 2012
• $36 thousand GROSS loss for Jan-Sep 2012
• $658 thousand net loss for Jan-Sep 2012

It seems JALA merged with an entity that likes to sell goods below production costs, logging gross loss even before operating expenses are factored in – a questionable business model.

There is even a dedicated domain to pump JALA, registered in mid-November, long before the company changed its ticker to JALA on Jan 7. The same promotional material with the same $2.2 million disclaimer can be found at jalareport dot com. Considering the dire financial situation of the entity even after the merger, the promotional campaign with its exorbitant budget, combined with the disclosure of 5 million share ownership on part of the promoters, careful traders should have just about enough red flags waving in their face.

The paid advertisement sets a price target of almost $1.50 per share for JALA stock, then the disclaimer states it was set “arbitrarily”. JALA may be an investment best reserved for people with a love for blatant pump jobs and randomly determined price targets.