Dewmar International BMC, Inc. (OTCMKTS:DEWM) Soars Higher on PR hype
For the last 8 sessions the stock of Dewmar International BMC, Inc. (OTCMKTS:DEWM) has made been making a tremendous run up the stock chart rising from $0.0004 to $0.016 as of yesterday’s close. Briefly it went even higher posting a high of the day of $0.021. So, what caused such an explosive surge? Well, as is the case with most pennystocks DEWM is only moving upwards thanks to recent hype around the stock.
After months of scarcely any information about their operations on December 11 the CEO of the company announced that their flagship beverage – the Lean Slow Motion Potion can now be found in quite a few Walmart stores. The news certainly managed to entice investors and traded volumes received a substantial boost. The day of the announced marked the absolute record number of 1.3 billion traded shares. Despite the heightened interest DEWM failed to move out of the triple zero price ranges.
All that changed on February 5 when DEWM revealed their plans to enter the hemp and marijuana industry. On Tuesday DEWM signed a co-branding and consultant agreement with a subsidiary of Hemp, Inc (OTCMKTS:HEMP) and yesterday they announced a one year distribution agreement with Chill Drinks, LLC the creator of the C+SWISS hemp-based ice tea.
It all sounds rather optimistic but be sure to do your own research before jumping in. As we said for most of 2013 DEWM was sitting well into the triple zeros for a reason. Their financial situation was only getting worse and at the end of September, 2013 they reported:
- $12 thousand cash
- $107 thousand total assets
- $1.1 million total liabilities
- $51 thousand revenues
- $340 thousand net loss
Revenues generated from sales of their relaxation drinks declined by more than half or 53% compared to the same period the previous year. At the same time net loss for the first nine months of 2013 are close to $2 million.
Shareholders of DEWM had to also suffer through a massive amount of dilution with 1.27 billion shares issued to two toxic funders of the company. Even though by now DEWM has managed to pay them off entirely the company will still need to find new sources of funds in order to move forward with any of its plans. That is why further dilution should be expected especially with the increase of the authorized shares to 4.5 billion.
Pushed by the marijuana hype DEWM may offer opportunities for quick gains but when the enthusiasm starts to subside so will the share price. Do your own due diligence and plan accordingly in order to avoid any unnecessary losses.Although Hemp, Inc. (OTCMKTS:HEMP) continued its recovery during yesterday’s session they are certainly showing a hesitant performance. The stock may have closed 4.3% higher than the previous session but at $0.169 it was sitting lower than its opening price of $0.179.
