Dewmar International BMC Inc. (OTCMKTS:DEWM) Turns Deeper Red
Dewmar International BMC Inc. (OTCMKTS:DEWM) had been fluctuating around $0.013 for several session straight when the most recent market shudder pushed it off balance. Now, the company’s back in double-zero land, fallen 36.59% over the course of a single disastrous day of trading.
Although it was unexpected and dramatic, this fall can’t really be attributed to the fickleness of the marijuana market alone. Most companies in the branch suffered during the seizure, but none other stumbled as bad as DEWM did. Companies such as Terra Tech Corp. (OTCMKTS:TRTC) and mCig Inc. (OTCBB:MCIG) lost some of their market value yesterday, but are now back on the rise. Why is that?
Because, unlike DEWM, said companies have something to show to potential investors. If one examines a couple of pot-stock charts, a pattern immediately becomes evident. The companies that showed any revenues or profit whatsoever in their latest financial reports lost the least amount of investor support during the sector-wide crash, and quickly shot up again immediately after it. The same is not true for DEWM, who not only disappointed its supporters with its last 10-Q, but is currently delaying the filing of the 10-K that was due om March 31, 2014.
The media attention DEWM attracted through announcements did stabilize it for a time, as all PR does in today’s volatile market. Despite their optimism, the company’s press releases couldn’t give it much breathing room, as they sounded ridiculous even as they hit the web.
DEWM‘s April 1 declaration that “it is exploring beverage and snack distribution opportunities throughout the UK” may sound more like an April fools’ joke than an actual piece of PR. Why? Because DEWM had $12 thousand in cash the last time it reported. Exploring the opportunities of a new market should cost significantly more than $12 thousand, shouldn’t it?
The announcement that there has been an over 600% increase in online sales for the three months ended March 31, 2014 as compared to the previous quarter also appears impressive at first glance. However, once examined, the comparison doesn’t make much sense – the company compares the first quarter of 2014 with the last quarter for 2013. No information on either of those, official or otherwise, is out yet, so the number in the press release is basically meaningless, despite being high.
As it is, one may wonder if DEWM is worth its market cap of $7.8 million. True, that number isn’t as hideously overblown as that of the more “prominent” members of the marijuana branch. However, it may be more than a company that has consistently failed to turn profitable and is swimming in debt should be worth. The way things are, it may take another sector-wide surge, a miracle or a really good 10-K to break DEWM‘s descent.
