BreedIT (OTCMKTS:BRDT)’s Run Continues
The company that we now know as BreedIT (OTCMKTS:BRDT) changed its name and business plan in December and we can definitely say that this was a welcome relief for the shareholders. Prior to the restructuring, the company was known as Programing Platforms Corp (traded under the PPTF symbol) and its management team seemed insistent that they will become the world leader in the online gaming business.
The 10-Q covering the third quarter of 2013 showed that their aspirations didn’t really pan out. PPTF was in a deep financial mess and it looked like getting out of it was nigh on impossible.
Things looked much more promising with the new business plan. Some reputable people took the helm and they brought a clever piece of software with them that is, apparently, developed “by breeders, for breeders“. Indeed, the new management team seem to know what they’re doing and they do have quite a lot of experience and yet, investors didn’t seem all that interested in the beginning.
The ticker did manage to get up and it held its own at the $0.12 per share levels, but the small trading volumes meant that interest was rather low.
Then, on January 15, Dr. Ben-Zion Wiener took a seat on the Board of Directors and he mentioned, among other things, that BRDT could have some significant potential in the field of medical cannabis. This was just what the market needed.
The reaction wasn’t instantaneous, but it was explosive. Six sessions of buying sent the ticker from the $0.16 levels all the way to over $0.40 per share. Somewhat predictably, it hesitated a bit, but with the help of one or two optimistic announcements, it has managed to put on a rather solid performance over the first half of February.
Perhaps more surprisingly, it’s still standing strong. The latest press release is now more than two weeks old, but despite this, BRDT has barely budged. Yesterday, it even managed to jump by 22% while shifting more than $1.32 million worth of shares.
All this without the help of paid promoters or overly optimistic press releases. Without a doubt, an impressive performance, especially for a ticker as new as BRDT, but before you get too excited, you should consider one or two things.
The first is, of course, the reason behind the impressive run from the last month and a half. Currently, BRDT is fueled by nothing more than the hype surrounding the marijuana industry and the occasional rumor about a joint venture with Creative Edge Nutrition Inc (OTCMKTS:FITX) (another heavily traded pot stock).
The ticker is gathering a lot of attention, but, at least for the time being, there isn’t a whole lot of facts supporting the potential of the company. A person by the name of Alan Brochstein published an interview with BRDT‘s COO, Oded Sagee a few hours after yesterday’s closing bell and while Mr. Sagee seems extremely excited about the software, the science, and the people behind it, he doesn’t seem too prepared to speak about things like the company’s financial situation and share structure. Of course, he is a Chief Operating Officer, so we shouldn’t be expecting too much of him in that direction, but even so, the questions remain.
The excitement is indeed very strong, but we can’t help but think that there are too many investors who are jumping in on the bandwagon without thinking about the risks. Make sure you’re not one of them.
Well Power Inc (OTCBB:WPWR) also managed to end yesterday’s session with some tasty gains. It added no less than 17% while shifting more than $9.2 million worth of shares. It really is a shame that it is fueled by nothing more than a multi-million dollar promotion.
