Bayport International (OTCMKTS:BAYP) Goes Green
2013 was a major year for Bayport International (OTCMKTS:BAYP). Numerous acquisitions of producing oil and gas wells were completed, the company finally started generating revenues, and if you believe the press releases, many more lucrative properties are about to be bought during 2014. On the whole, the management team seem to be happy with the progress they’ve made over the last twelve months. But are the shareholders pleased?
On October 29, 2013, BAYP issued an update on how things are going around the company. The PR article was full of words like “prosperous” and “growth” and in one of the paragraphs, they said that they are working hard on becoming a fully reporting SEC company. BAYP predicted that the stock will be traded on the OTCQB tier by the end of the fourth quarter. That didn’t happen.
The annual report for the twelve months ended December 31 was published according to the alternative standards a few days ago. We went through it and we should note that “prosperous” and “growth” aren’t the first words that come to mind when you read it. Here are the figures:
- cash: $1,387
- current assets: $9,291
- current liabilities: $165 thousand
- yearly revenue: $6 thousand
- yearly net loss: $102 thousand
The report isn’t really that convincing and the fact that as of December 31, all of the authorized shares were issued and outstanding could scare away even more investors. What’s more, of the 1.5 billion shares, 980 million saw the light of day during 2013 and 795 million had no restriction legend attached to them. This has caused some significant dilution, but the fact that BAYP weren’t allowed to issue any more stock a couple of months ago doesn’t mean that this is still the case. In fact, according to the information on Nevada’s Secretary of State’s website, the authorized capital amounts to 3 billion shares at the moment.
The severe dilution and the dismal financial statement meant that until a couple of days ago, BAYP‘s share price was hovering between $0.0002 and $0.0004 while the virtually non-existent trading activity suggested that nothing could get the ticker out of this levels.
Yesterday, however, we saw a dramatic change in investors’ attitude towards BAYP. More than 1.5 billion shares changed hands in just six and a half hours, resulting in a dollar volume of nearly $2.3 million. The price jumped up by a mind-bending 766% and BAYP closed the day above the $0.001 mark for the first time since June 2013. Currently, the ticker stands at $0.0026 which, at 1.5 billion shares issued and outstanding, results in a market cap of nearly $4 million.
It’s clear that this might be a bit of a stretch considering the company’s horrific financial statement, but what caused the massive jump?
Apparently, like so many other triple-zero penny stocks, BAYP are now looking at the scorching hot marijuana industry. A couple of hours before the start of yesterday’s session, they issued a press release saying that they have formed a wholly owned subsidiary called Bayport Medicinal Research, Inc. that will be seeking acquisition candidates in the legalized and medical cannabis sectors. They also said that they have identified several businesses that are for sale and announced that as soon as they have more details on the developments, they will issue an update. On the whole, they didn’t give out too much concrete information, but the hype around the cannabis industry was enough to get investors all fired up.
If the stock is to perform in the long run, however, they’ll need to prove to us that they are capable of being successful as a pot-related company. Will they be able to do it? Looking at the past performance, we’re not so sure.
Doing a lot of due diligence and carefully considering the risk is, as always, absolutely essential.
