EnzymeBioSystems (OTCMKTS:ENZB) Moves Up

[[tagnumber 0]][[tagnumber 1]][[tagnumber 2]] [[tagnumber 0]]In early trading yesterday the stock of EnzymeBioSystems (OTCMKTS:ENZB) spiked to a high of $2.50 per share. Such prices were far too much for the ticker to support though and it quickly dropped back down. Still, when the closing bell rang the stock was sitting at $2.3 for a gain of 5.5%. The 133 thousand shares that changed hands during the session surpassed the 30–day average volume for the company by more than twice. The performance was undoubtedly positive but can [[tagnumber 4]]ENZB [[tagnumber 5]]justify it?[[tagnumber 2]] [[tagnumber 0]]The last official PR issued by the company is nearly a month old and it was not particularly exciting, either. The press article was supposed to be a product development update but it contained hardly any useful information. Apparently apart from their lead product [[tagnumber 8]]methyl amooranin[[tagnumber 9]] [[tagnumber 4]]ENZB [[tagnumber 5]]are looking to start developing new OTC products. How are they hoping to achieve this was not mentioned.[[tagnumber 2]] [[tagnumber 0]]And there is substantial doubt about [[tagnumber 4]]ENZB‘s[[tagnumber 5]] ability to carry out their plans. The company is in an atrocious financial state finishing the quarter ended March 31 with:[[tagnumber 2]] [[tagnumber 17]] [[tagnumber 18]]$309 thousand cash and total current assets!!![[tagnumber 19]] [[tagnumber 18]]$7170 total current liabilities[[tagnumber 19]] [[tagnumber 18]]ZERO revenues[[tagnumber 19]] [[tagnumber 18]]$35,580 net loss[[tagnumber 19]] [[tagnumber 26]] [[tagnumber 0]]It should be obvious that the balance sheet simply cannot support the current market cap of the company of nearly $40 million.[[tagnumber 2]] [[tagnumber 0]]Investors have a lot more to worry about though. Not so long ago [[tagnumber 4]]ENZB [[tagnumber 5]]were targeted by a widespread pump campaign that involved the creation a landing page and the distribution of hard mailer brochures. When a company gets pumped it usually means that millions of discounted shares were issued in the past and now their owners have the opportunity to reap massive profits at the open market. [[tagnumber 4]]ENZB [[tagnumber 5]]is not an exception – just take a look at this Schedule 13D according to which between March 2 and March 6 the entity Quattro Associates sold [[tagnumber 4]]over 230 thousand shares for $355 thousand[[tagnumber 5]]. At the same time [[tagnumber 4]]the original price[[tagnumber 5]] paid by Quattro for the shares was [[tagnumber 4]]a little over $17 thousand[[tagnumber 5]]. Back in June [[tagnumber 4]]ENZB [[tagnumber 5]]implemented a 1–for–2 reverse split but that still leaves millions of underpriced shares that could be unleashed on the open market.[[tagnumber 2]] [[tagnumber 0]]The fact that the corporate office of the company appears to be a UPS store while the official website has not been updated since June 2014 don‘t make the situation any better. The plethora of red flags turn [[tagnumber 4]]ENZB [[tagnumber 5]]into an extremely dangerous choice that demands extensive due diligence. [[tagnumber 2]]