Premier Mortgage Res (OTCMKTS:PMRS) Goes Wild
Though the name would suggest it, Premier Mortgage Res (OTCMKTS:PMRS) isn’t actually a mortgage company. It used to be, but that was a long time ago.
Back in the 1990’s, PMRS was a SEC reporting entity that provided banking and mortgage services. They were generating some revenues, but at one point, the financial problems became too big to handle and the former management team was forced to alter the business plan. They tried to turn PMRS into a consulting company, but unfortunately, that didn’t quite work out as well and in 2002, they stopped filing their reports with the Commission.
The stock had no choice but to sink to the bottom and everything suggested that this would be the end of PMRS. It wasn’t.
On March 14, nearly twelve years after the latest 10-Q, PMRS published an Initial Company Information and Disclosure Statement through OTC’s Disclosure & News Service and it tells us some interesting things about the company. Apparently, there’s now a new management team in place. The old business plans have been abandoned and the document informs us that PMRS are now going to pursue something completely different.
An acquisition of a website called Alternaturals.com has been completed during the year ended December 31, 2013 and through it, PMRS want to sell “alternative healthcare products including Hemp and cannabis related products“. The mere mention of the word “cannabis” was enough to draw investors’ attention and the few optimistic press releases that have come out of the company headquarters have secured some high trading volumes.
The performance hasn’t really been that consistent, but the last three sessions all ended in the green with 90% in cumulative gains. The excitement is, apparently, caused by a Twitter announcement according to which the new name and ticker symbol should be assigned tomorrow. Currently, the stock stands at $0.0076 per share which results in a market cap of just under $18 million. That’s where the problems start to emerge.
The market cap isn’t really that ridiculous, but it does seem like a bit of a stretch for a company that has such a horrid-looking balance sheet. According to the filings, on December 31, 2013, PMRS had:
- no cash
- no assets
- no revenues
- total liabilities: $150 thousand
The liabilities consist of a defaulted note which can be turned into common stock at an undisclosed “predetermined discounted rate“. And since we mentioned common stock, we should also note that the document gives out absolutely no information on the equity issuance between 2002 and 2014. All we know is that twelve years ago, the O/S count stood at just 1.3 million shares whereas now, it’s hovering around the 2.3 billion mark.
In any case, while the new business plan might be in unison with the current marijuana craze that has taken over penny stock investors, an e-commerce website with just three products in it and a balance sheet full of zeros are never going to support the stock in the long run. That’s why, careful evaluation of all the risks is absolutely essential.
