Dewmar International BMC Inc (OTCMKTS:DEWM) Remains Hesitant Despite High Volumes
On February 28, Dr. Marco Moran, Dewmar International BMC Inc (OTCMKTS:DEWM)’s CEO, said in a press release that the Slow Motion Potion is “the second most widely distributed and gross revenue generating relaxation beverage” in the US. If that is indeed the case, then the relaxation drinks market is not doing particularly well at the moment.
According to the latest 10-Q, DEWM managed to register just $51 thousand in revenues during the third quarter of 2013. This is a worrying enough figure on its own but when you compare it to the results from the corresponding period of 2012, things look even worse. The sales have dropped by a mind-boggling 53% year-over-year while the net loss has mounted to over $340 thousand.
If you take the time to check through the older filings, you’ll see that the revenue drop is not a one-time affair. In fact, DEWM‘s sales have been on a decline for quite some time now and the diminishing figures put some rather big question marks around the optimism that is spurring out of the press announcements. As a result, the stock performance has left much to be desired.
On November 29, 2012, for example, DEWM‘s share price was hovering around $0.002 per share while on November 29, 2013, it closed at $0.0001.
Surprisingly, the disappointing revenues isn’t the only factor depressing the price. The dilution that the shareholders have gone through is absolutely devastating. In a matter of just twelve months, the company has issued more than 950 million common shares bringing the total number to over 1 billion. As big as the share count is, it might continue to grow, especially considering the lack of profitable business, the decreasing revenues and the amount of convertible notes still outstanding.
Despite this, the ticker has been on the move over the last couple of days. It jumped by 350% on December 11 when it reached $0.0009 per share. The surge was followed by a drop to $0.0006 but it spiked again last week and during the short session on Christmas Eve, it managed to break through the $0.001 barrier. Another consolidation was experienced yesterday when it lost 23% while racking up a dollar volume of around $515 thousand.
All in all, DEWM is turning into a wild roller-coaster-like ride which means that predicting what will happen next seems almost impossible.
Of course, there are quite a lot of people on the message boards who will tell you that yesterday’s drop is simply a natural pullback which is a part of a solid upward trend that is currently forming around DEWM. There are even videos flying around in which people analyze the chart and speak about support and resistance levels.
There’s nothing wrong with that, but on the other hand, you’ve got the terrible historic performance, the decreasing revenues, the threat of yet more dilutive financing, and the increased interest around the ticker which in Pennyland at least, is not always a good sign.
In fact, the only thing that could brighten the day for the shareholders is the announcement from two weeks ago according to which the Slow Motion Potion will soon be available in quite a few Walmart stores. Is this enough to make you put your hard-earned cash in DEWM? It’s up to you to decide, but you should be careful to consider all the risks before putting any money on the line.
On the bright side, DEWM is not promoted at the moment which is definitely a good thing since we have already seen how poorly the ticker performs under the pump pressure. Speaking of which, Tiger Oil and Energy Inc (OTCMKTS:TGRO) lost around 15% of its value yesterday while shifting more than $14.5 million worth of shares. At $255 thousand, the dollar volume registered by Endeavor IP Inc (OTCBB:ENIP) was quite a bit smaller. Even so, it too managed to lose around 6% of its value.
