Dewmar International BMC, Inc. (OTCQB: DEWM) (OTCBB: DEWM) Changes Gear
Dewmar International BMC, Inc. (OTCQB: DEWM“> DEWM) (OTCBB: DEWM“> DEWM) receives a price hike amidst new press release, resulting in a more than joyful mood for investors as the share price soars.
DEWM is a company that wants to expand its portfolio of brands across all markets. That said, so far, they have managed to commercialize just one product, the LEAN slow-motion-potion, and it is their only chance of success
Reportedly, in 2008 many new companies took advantage of the hype around the so-called “relaxation drinks” – non-alcoholic beverages that are supposed to provide the opposite effect to energy drinks. DEWM“> DEWM claim that they are one of the last companies still standing to be fully engaged in this business. Their last few press release talked about the resounding success they had with LEAN’s placement in Wal-Mart Stores, Inc. (NYSE:WMT) stores across the US.
In the report from yesterday, the management team claim that they expect a 300% revenue boost quarter-over-quarter. Indeed, on January 13, they announced twenty-three fresh location which are almost guaranteed to give sales figures a push. Will they triple though? Only the cold hard numbers in the upcoming statements could give us the answer.
Some more good news was brought up with their announcement, that there are currently no toxic financing facilities that could potentially dilute the shareholders’ investments. This is good news since, as DEWM“> DEWM themselves admit, the last time they signed similar contracts, two unnamed investment groups converted debt into around 1.3 billion shares. The lack of toxic financing should put a stop on the dilution, at least temporarily, which means that the shareholders could breathe a sigh of relief.
They are not out of the woods just yet though. With profitability nowhere in sight, the threat of further stock issuance remains.
Despite this, traders went wild after yesterday’s press release. DEWM“> DEWM exploded, both in price and in volume and, after more than two weeks of being unable to pass the $100 k trade value mark, it finally broke out.
The price jump was a spectacular 260% and the ticker closed the session priced at $0.0018 for the first time since June 2013. In just six and a half hours of trading, DEWM“> DEWM managed to shift more than 1 billion shares resulting in a dollar volume of around $1 million.
DEWM is indeed soaring, but there are still some things well worth considering. Investors should, however, keep in mind the terrible historic performance, the decrease in revenues witnessed so far, and the threat of yet more dilution.
Although DEWM“> DEWM isn’t the most heavily promoted stock on the OTC markets, it did experience a short, free pump from Epic Stocks at the beginning of 2014. The results weren’t spectacular, but if, for some reason, the pumpers decide to come back, they could wreak havoc with the price.
In any case, be sure to do a lot of due diligence and weigh out the risks, especially when deciding whether to invest in a company that has experienced such a rapid growth in the share price.
