Hangover Joe’s Holding Corp (OTCMKTS:HJOE) Still Wobbling About
Like many other OTC companies, Hangover Joe’s Holding Corp (OTCMKTS:HJOE) also have a social media presence, but the way they are using it is somewhat weird. On the one hand, they are saying that the Twitter and Facebook profiles are dedicated to sales and promotion only. At the same time, they are using these profiles to call random people on the Internet “fools”.
The majority of investors, however, don’t reckon that this is a problem. The volumes exploded a couple of weeks ago, and thanks to them, the ticker emerged out of triple-zero land and ran to a high of $0.004 per share. It did experience a rather scary crash last week when it lost 40% of its value in a matter of three sessions, but yesterday, it managed to recoup some of the losses. It gained 20% and it closed the day at $0.003 on a dollar volume of about $180 thousand.
A press release probably contributed to the green session. It said that the next episode of Food Factor USA will air on June 6 instead of June 4. As you probably know, HJOE‘s Git-R-Done energy drink will be featured in the aforementioned episode, and the management team reckon that being aired on a Saturday means that more people will watch it.
The reason for the overall increase in volumes, however, has nothing to do with the Food Factory TV show. Funnily enough, it could be traced back to the aforementioned social media profiles.
HJOE have been telling us for quite a while now that plenty of positive things are going to happen to the company in the near future. The initial spike in the share price was caused by a Korean commercial for the hangover shots that they posted on Facebook and since then, they’ve been talking about major distribution deals that will, supposedly, “rock the beverage world”.
Many penny stock companies have set themselves the task of “rocking the beverage world”, but very few have succeeded. Hopefully, HJOE will be one of the happy endings, but being in charge of a publicly traded entity means that the management team also have some shareholders to think of. And they don’t seem to be doing that very much.
It’s been more than two months since they said that they will be late with their 2014 10-K, but it’s still not out. Predictably, the 10-Q for the first quarter is missing as well which means that the most current financials are now more than eight months old.
On Friday, Matthew Veal, HJOE‘s CEO, finally made an official announcement (as official as a Facebook post can be) and said that there have been some problems with Terry Johnson, CPA, the company’s former auditor. Not a whole lot was given in terms of details, but Mr. Veal said that a legal action has been initiated and that at the moment, HJOE can not comment on when the filings will finally be out.
And this means that any investment you make in HJOE will be based on very limited information. You don’t know, for example, what the share structure looks like, and in light of what happened at the beginning of the year, this is rather worrying. As we mentioned in our previous articles, between November 2014 and March 2015, the number of issued and outstanding shares grew from 331 million all the way to nearly 1.7 billion. The authorized count was upped to 5 billion at the end of last year which means that right now, the O/S could be even higher.
How high exactly? Well, the management team should have access to that information. Sadly, they are not willing to disclose it.
About fifty minutes after today’s opening bell, HJOE is sitting at $0.0028 (6.7% in the red).
