Hangover Joe’s Holding Corp (OTCMKTS:HJOE) Soars Up The Chart
Back in May the stock of Hangover Joe’s Holding Corp (OTCMKTS:HJOE) managed to burst out of the triple-zero price ranges after it surged from less than $0.0005 to over $0.0035 in just three sessions. Since then the ticker did suffer through several massive drops but so far it has been able to keep most of its gains.
Yesterday the stock made another explosive move up the chart adding over 44% to its value and closing at $0.0042. The outcome of the session was nothing short of amazing but it should be noted that the daily volume of 66 million shares was nowhere near the 30-day average for the stock of 102 million shares. Some investors might be reluctant to put their trust in the company which shouldn’t be that surprising when you take into consideration the numerous red flags around HJOE.
When you open the OTCMarkets profile of the company you will be greeted by a rather scary OTC Pink No Information Stop sign. By the end of March HJOE were supposed to file their annual report for 2014 but on March 31 the company submitted a notification of late filing instead. This gave them another 15 days but even now, a month a half after the end of this extension, there is still no sign of the report. In a Facebook post from May 28 the CEO stated that they are having problems with their auditor and have initiated a complaint against him. As a result it cannot be estimated when the financial report will be completed.
This means that investors have to rely on the quarterly report for the period ending September 30, 2014. And eight months ago HJOE were in a rather depressing state with less than $50 thousand cash, working capital deficit of $2.7 million and a net loss of $592 thousand. In order to sustain its business operations the company had to issue convertible notes to nearly every toxic funder in the world of pennystocks – Asher, Tangiers Investment Group, KBM Worldwide, JMJ Financial. If you have any experience with pennystocks you should know that this usually means only one thing – a crushing dilution of the common stock.
Between December and March 20 HJOE’s outstanding shares ballooned from 331 million to over 1.66 billion. In order to accommodate the issuance of so many new shares HJOE had to increase their authorized amount from 500 million to 5 BILLION. On March 20 a Schedule 13G filing showed that another toxic funder had become involved with the company – Magna Asset Services, Ltd. was now entitled to receive 168 million shares through convertible debt. A Twitter post from Tuesday, however, announced that Magna have “no shares or no ongoing deal with the company!”.
As you might have gathered by now HJOE are rather insistent on using their social media platforms instead of keeping investors informed about the progress of the company through official filings or PRs. On Twitter the company has been posting messages (post 1 and post 2) about a major deal that should take place on Friday. We will see if this will be enough to keep investors excited.
Ultimately it is up to you to decide whether to base your trades on Facebook and Twitter posts that have not been backed up by any official filings. Just be sure to do your own due diligence before putting any money on the line.
