Bebida Beverage, Inc. (OTCMKTS:BBDA) Almost Triples on PR Efforts
Bebida Beverage, Inc. (OTCMKTS:BBDA) has another successful day- but don’t rush to be too happy. In the past, BBDA has exploded above its baseline levels, only to return to slim trading. The business model for BBDA is promising and somehow ambitious, yet the ticker has been sliding in the past year. So far, BBDA has shown a traditional rise in the early months of a new year, as its future was presented in an optimistic light. This year is no exception, and BBDA bombarded investors with PR and corporate updates. 
BBDA grew by 175% to $0.0022 on buying volumes of above $997,000. Those volumes are far from unusually high, and follow the slow days around the long weekend. BBDA has not been in active promotion since the summer of last year, when it was lifted to a couple of cents in a short-lived spike. The latest rise is carried mostly by news of business developments and presentations of the company’s products.
Without too much noise and hype, KOMA Unwind, the relaxation drink of BBDA, is being distributed online, and now BBDA claims to be adding distributors. Also, the drink was featured in the “O” (Oprah Winfrey) magazine, and the event reiterated as PR from the company. All of that, in addition to the low price, shot BBDA upward to its current fame. The PR efforts of BBDA began in January, but for now, the company is not too frequent with press releases, showing up every couple of weeks. So we have to wait and see if the current level is sustainable.
Unfortunately, BBDA is very late with its audited financial results, and all we have are the promises that KOMA will bring in revenues. The latest filing from the fall of last year reveals that BBDA has:
- $102,772 cash
- $1.4 million total assets
- $350,995 total liabilities
- $2.2 million revenues
- $70,191 net gain for the September 30th quarter of 2013
While the results are not audited, BBDA certainly keeps looking like the rare underpriced opportunity. The two problems are that BBDA has been over-promoted and sank down with fatigue, and also that the company has upward of two billion outstanding shares, and the heavy dilution does not allow for scarcity to lift up the price.
Investors’ forums vary in opinions between the idea that BBDA will realize its potential and follow the fate of other beverage companies, but also the possibility that the latest event is merely a blip, a buyout of cheap shares to boost activity and price, and follow with heavy selling.
Also, BBDA has a further 9.8 billion shares authorized, and with a market cap of a bit above $8 million, it is truly a generally low-priced outlier- but one that has real trouble gaining to a more respectable price.
Still, BBDA looks much better than The Alkaline Water Co, Inc. (OTCMKT:WTER), which relied on promotions more than on its product and ended up losing 80% already since the peak promotion. Nor is heavily promoted Kona Red, Inc. (OTCBB:KRED) doing any better, as it slipped after the promotion from heights of $1.25 to its current levels at 74 cents.
Keeping in mind the BBDA story, the ticker allows for some opportunities for fast growth, but it is best to avoid overinvesting in a company with such a diluted share structure.
