Dewmar International BMC, Inc. (OTCMKTS:DEWM) Corrects After Spike
On Wednesday the stock of Dewmar International BMC, Inc (OTCMKTS:DEWM) managed to log in its fifth session in the green since the start of the month. Despite the prevalent negative trend DEWM was still able to jump up by nearly 30% and closed the day at $0.016. Investors returned to the company and shifted 231 million shares, nearly three times more than the volume for the previous session.
Such a strong reaction was not surprisingly preceded by an extremely positive PR announcement from the company. In it DEWM revealed that sales of their Lean Slow Motion Potion have not only reached the goal of a 300% increase but have far surpassed that mark. As of the day of the announcement sales for the first quarter of 2014 were 550% higher than the ones for the last quarter of 2013.
The problem is that even such a major move in the right direction managed to excite traders for only a day – during yesterday’s session DEWM corrected by 13% and dropped right back down to $0.014.
The problem is that until the annual report is filed, which should happen by the end of the month, there is no way of knowing how much actual revenues are standing behind the percentage increase. In fact if you take a look at the financial results for the quarter ending September 30 you will see that revenues for the nine months covered by it were down by 50% to just $200 thousand.
Still, optimism around DEWM seems to be holding up for now especially when you consider that at the end of January the stock was sitting deep into the triple zero price ranges. The company has also announced that during the second quarter of 2014 they expect to launch their Kush Cake brownies, produced with hemp hearts supplied by Hemp, Inc. (OTCMKTS:HEMP).
With expectations of more official news in the upcoming weeks DEWM should remain a volatile stock to pick. Do your own due diligence and take into account all the risks associated with the stock. As we said in our previous articles about the company DEWM was forced to enter into agreements with two toxic funders that when all was said and done had diluted the outstanding shares by 1.27 billion.
Another company that displayed an almost identical chart performance for the past two days is Primco Management, Inc. (OTCBB:PMCM). Their stock surged upwards by 70% on Wednesday and closed at $0.0034 just to fall right back down again on the very next day –PMCM wiped 23% and dropped to $0.026 per share. Hemp, Inc. (OTCMKTS:HEMP), on the other hand, is trying to stop the slow decline of its stock ending the day at $0.118, less than a percent above its previous close.