Dewmar International BMC Inc. (OTCMKTS:DEWM) Surges On Press Release
Dewmar International BMC Inc. (OTCMKTS:DEWM) jumped 29.84% yesterday, pushed upward by the news of its alleged commercial success.
The company announced that at this point in time, it has considerably exceeded its rather optimistic projection of revenue growth for the first quarter of 2014. DEWM‘s jump in Lean Slow Motion Potion sales was a direct result of realizing a number of purchase orders from regular customers.
In the same press release the company also announced that it has began negotiations with another bottler with a more strategic location than the current one. This would serve to reduce DEWM‘s shipping costs, thus improving profitability from sales.
The company also announced that it is planning to launch its “Kush Cake” brownies in the second quarter of 2014, along with other hemp-based consumables later in the year.
On Feb 5, 2014 the Company declared that it should be able to make at least a 300% increase in sales compared to previous quarter. As of yesterday, the previous quarter comparison is a 550% increase, stated DEWM.
As it stands, it is no wonder investors jumped at DEWM stock as soon as the press release hit the wire. The news in the announcement was certainly encouraging enough to cause another hype breakout. Also, unlike most other recent press releases made by pot-stock companies, it actually contained some important numbers, information that’s of some value for investors. Or did it?
Upon closer examination, it turns out that all of the growth numbers given in the press release are, in fact, comparisons with the company’s achievements in the final quarter of 2013. That’s the one that concludes the company’s financial year, so it hasn’t been reported yet. If the report for said final quarter turns out to be as weak as the one before it, investors may be in for a disappointment, regardless of the 550% increase in revenue. Because the 10-Q for the period ended Sep 30 painted an ugly picture:
- cash – $12 thousand
- total assets – $107 thousand
- total liabilities – $1.1 million
- revenues – $51 thousand
- net loss – $340 thousand
Other marijuana stock companies weren’t so fortunate yesterday. Hemp, Inc (OTCMKTS:HEMP) and Growlife, Inc. (OTCBB:PHOT) both stumbled during that session, by 2.42% and 11.98% respectively.
