Bebida Beverage, Co. (OTCMKTS:BBDA) Pours In Another Good Day
Bebida Beverage, Co. (OTCMKTS:BBDA) survived another day in a rather good mood, climbing a further 36% to $0.003 on $1.59 million buying volumes. BBDA supported the recent rise with news of a participation in NASCAR events. The beverage company has been more active with news and updates, and this has spilled over to the OTC markets into better trading volumes. Still, despite the promise and the distribution of the KOMA drinks brand, BBDA has been trading at extremely low prices.
Now, BBDA announced it would put its brand on two NASCAR teams it has a partnership with, and the company is not lacking in publicity, including a mention in Oprah Winfrey’s “O” magazine. However, the so called mention is not seen in the online version of the magazine, and we cannot estimate the size or impact of the publicity, beyond the claims of BBDA itself. Yet none of this publicity explains the difficulty of the stock price to detach itself from the rock-bottom positions.
BBDA is still not seeing an email promotion, though when it was mentioned by pumpers, it did little to improve the stock’s position, leading to a spike of just two cents. This is due to the hefty share structure, diluted with billions of shares and still 9.8 billion authorized shares waiting in the sidelines.
Still, KOMA Unwind indeed shows a popularity much greater to other brands with a presence in social media. Its Facebook page has upward of 50K likes, and is clearly not a short-term stunt that has been used by other penny stock companies in the soft drinks sector.
To compare, Kona Red Corp. (OTCBB:KRED) is still juggling about 10 thousand followers. KRED has the problem of being a generally higher-quality company with some product sales, but being overly-promoted depressed the ticker to its current levels, where it is attempting a recovery toward $0.77.
For companies that existed longer, the trading style is quite different. Jones Soda Co. (OTCMKTS:JSDA) picked up seriously as well in 2014, but it has always kept respectable levels, and it was only mentioned once by promoters interested in more stable companies. In the new year, JSDA moved up from $0.40 to $0.54, though volumes remain slim as the ticker is one with a longer-term potential and less prone to short-liver exuberance.
Beverage companies are a whole different class among the OTC stocks, and so far there has rarely been a mass hype around this business. Most have a real product, and it is rarely that a new ticker arrives that is only in the development stage. But long development times and distribution efforts sometimes depress the stock price.
Until BBDA achieves enough success to take off, it is best to be aware that at this low price, the fluctuations can be fast and significant. The great stock dilution also means that BBDA has little pressure to rise. Keep in mind that price gains for this company are often caused by press releases, and avoid relying too much on the upside potential.