Alkame Holdings, Inc. (OTCMKTS:ALKM) Can’t Stop Their Fall

Last Friday the stock of Alkame Holdings, Inc. (OTCMKTS:ALKM) crashed hard wiping close to 25% of its value and closing at exactly 5 cents per share. During the weekend investors’ sentiment didn’t change much and when the closing bell rung this Monday the ticker had lost another 6% sliding down to $0.047. Even if some thought that the stock was slowing down its decline yesterday’s disastrous session proved them wrong.

ALKM opened at $0.0471 but almost immediately plunged for the bottom and remained there for the rest of the trading day closing over 29% in the red at $0.033. A new 52-week low of $0.03 was registered. The drop took place on the biggest volume for the past two months of 10.9 million shares. Compared to the high of $1.08 reached at the start of May the company has lost over 95% of its value.

The depressing performance could be explained with the two multy-million pumps that targeted the stock of the company in a quick succession. The first promotion was carried out by an entity called Wall Street Giants and it had a production budget of $1.5 million. Just a few months later the infamous pumper StockTips announced that ALKM are their new pick but this time the campaign had a much bigger budget – $4.6 million.

Despite the horrific consequences of the pumps some investors still believed in the potential of the company. And indeed ALKM do have some redeeming qualities. They have a completed product and were beginning to generating respectable revenues – $69 thousand for the quarter ending June 30. The multitude of PRs announcing new distribution agreements signaled that Alkame are steadily growing their operations. Well, the financial report for the quarter ending September 30 revealed that this couldn’t have been further from the truth. The financial results for that period were:

• $161 thousand cash
• $711 thousand total current assets
• $2.2 million total current liabilities
• $6665 revenues
• $1.1 million net loss

In addition to the disappointing numbers investor need to also take into consideration the numerous convertible debentures issued by the company that enable their owners to convert them into common stock at a major discount to the market price.

Having depreciated so much in such a short time ALKM could eventually bounce back up. The stock may find it hard returning to its previous price ranges though considering all the red flags around it.