DETHRONE ROYALTY HOL (OTC:DRHC) Struck Out
Three pumps in just a couple of months is quite an achievement. DETHRONE ROYALTY HOL (OTC:DRHC), however, had absolutely no problem conquering this peak. What they did struggle with was the performance once the hype was gone.
As you can probably see on the right, their chart for the last three months resembles the track of a roller coaster, and the highs represent the joint effort of newsletters and DRHC, in trying draw some attention to the stock while the dips show what happens when the emails and press-releases stop.
The the first pump took place on January 14, the second one was on March 6 and the third one ended yesterday. The first effort resulted in a 44% loss in just a day. When the second campaign stopped they dropped by 21% and yesterday’s session saw them lose another 32%. This means that they have dropped from $0.14 when the promotions started to just $0.05 as of the time of writing this article. In other words, a loss of 65% in a little over two months.
If we have to think of one positive thing about the pumping efforts, it would be the fact that the news spread around by both DRHC and the promoters sounded extremely exciting. This excitement can’t be recreated when reading their latest quarterly report, though.
As we mentioned in our previous article, DRHC‘s financial situation is far from glamorous and they have yet to start selling their new and innovative energy drink. Which, by the way reminds us that the second wave of promotional emails revolved around the launching of their beverage and the ceremony that was to take place on March 9. They told us how many sport starts will be there and other things that attempted to get us all wound up. We were quite eager to see some photos from the event but, unfortunately, DRHC have probably forgotten to upload them to their website. If the event took place, that is.
No matter how promising the emails sounded, they never managed to impress us, and there is a very good reason for this – we opened their latest financial report. Here’s what we found:
- cash: $2,234
- current assets: $212 thousand
- no revenue since inception
- quarterly net loss: $145 thousand
Nevertheless they are quite keen on getting their new energy drink off the ground which involves the endorsement of some athletes. And the only way to convince the sportsmen and women to get in on it, was to pay them with common shares instead of cash. We can’t imagine that this made the shareholders very happy.
We also found out from their financial report that if they are to keep the license for the name of their energy drink, they will need to generate at least $3 million in revenue for the first year. They might just be able to do it, but it will be extremely hard.
These are just a few of the reasons why we thought that the pump will fail and we turned out to be correct. Now that they have so many disastrous promotions under their belt, it will be even more difficult to convince investors that they are more than just a favorite target for pumpers.
