Alkame Holdings, Inc. (OTCMKTS:ALKM) Remains Volatile
On September 8 the pump outfit StockTips announced that their next pick is going to be Alkame Holdings, Inc. (OTCMKTS:ALKM) The artificial hype coupled with the fact that the pump had a disclosed budget of $4.6 million quickly pushed the stock from just over 15 cents to a high of nearly 48 cents in a little more than two weeks. We covered the progress of the pump and warned you that despite the overly-enthusiastic promises a crash was inevitable.
And we were exactly right – in just four sessions ALKM wiped over 60% of its value. The slide was so devastating that it forced StockTips to put an end to the campaign. The last email alert came on September 29 and it still tried to convince investors to jump in. In the aftermath of the promotion things got even grimmer. The company went on a streak of seven consecutive sessions of losses that brought them down to almost 10 cents per share, nearly 80% lower than the pump high.
Even the fact that ALKM continued to announce new distribution partnerships that further expanded the reach of their alkaline water failed to stop the depressing performance. But now that the stock has been left to move on its own should investors expect a reversal?
Despite the numerous pumps for the company ALKM have a real business and a completed product. The latest financial report showed that at the end of June they had:
• $42 thousand cash
• $683 thousand total current assets
• $836 thousand total current liabilities
• $69 thousand revenues
• $303 thousand net loss
It is obvious that the company is having some troubles – a negative working capital, accumulated deficit of over $6 million and a couple of outstanding convertible notes that could be turned into common shares at a significant discount to the market price. However, the company is expanding its operations which could result in an increased influx of money from sales.
At the moment though they are still a risky choice for investment. On Tuesday and Wednesday the stock surged up the chart and returned to $0.18 per share. It seemed that the positive momentum had carried over into yesterday’s trading and indeed for most of the session ALKM remained above 20 cents per share but right before the closing bell it took a nosedive and slid 4% in the red at $0.172.
It is more than likely that ALKM will continue to be a volatile stock. Currently they command a market cap of over $12 million which may a bit too much to support. The negative effects of the recent pumps will also continue to influence the performance of the ticker. That is why it is paramount to do your own extensive research before putting your money on the line.
