Baristas Coffee Company Inc. (OTCMKTS:BCCI) Returns Above 10 Cents
Ever since it dropped below 10 cents on May 13 the stock of Baristas Coffee Company Inc. (OTCMKTS:BCCI) has been trying to recover its losses. Yesterday it finally did when the 6.1 million traded shares resulted in a gain of 12.6% and a close at $ 0.107. The stock went even higher reaching $0.12 but it couldn’t support such price ranges.
The significant upwards move was caused by a PR issued early in the morning. In it BCCI announced that they have signed an exclusive Franchise Development deal with BMOC targeting 8 states. As part of the deal BMOC will provide $25 thousand monthly for advertising that should attract future franchise partners for BCCI.
The company operates drive-through espresso stands and at the moment has grown to 10 different locations. Having real business and stable revenues certainly puts them apart from the majority of pennystocks but there still are risks around the stock. According to the annual report BCCI finished 2013 with:
• $43 thousand cash
• $105 thousand total current assets
• $565 thousand total current liabilities
• $1.3 million revenues
• $154 thousand net profit
• $105 thousand total current assets
• $565 thousand total current liabilities
• $1.3 million revenues
• $154 thousand net profit
Despite the fact that they actually managed to end the year with a positive balance sheet their cash reserves are not that high. The company may also be forced to increase it authorized shares because as of December 31 they were sitting at 295 million outstanding shares out of the 300 million authorized. The last couple of reports also contain a rather peculiar line – “unidentified tangible or intangible assets” amounting to $7.3 million.
Currently BCCI have the Pink Limited Information sign on their OTCMarkets profile due to their inability to file the financial report for the first quarter of 2014 on time. The report should have been completed prior to May 15 but as of today it has still not been submitted. The company didn’t fill out a notification of late filing which could have given them an extension of the period.
For now BCCI seems stable enough and the stock is maintaining most of the gains posted at the start of March. Still it is imperative to do your own due diligence before jumping into any trades involving pennystocks. During yesterday’s trading the marijuana industry continued to slide downwards with some companies suffering catastrophic corrections. Fortitude Group, Inc. (OTCMKTS:FRTD) crashed by more than 39% and dropped to $0.017 while Treatment Centers Inc. (OTCMKTS:UTRM) had an even worse fate losing 44% of their value closing the session at $0.0026.
