Hangover Joe’s Holding Corporation (OTCMKTS:HJOE) Crashes Horribly
Hangover Joe’s Holding Corporation (OTCMKTS:HJOE)’s fevered ascent turned into a terrifying nose-dive that cost the company 34.78% of its market cap yesterday.
Although the ticker’s abrupt fall is certainly violent enough to give its supporters a splitting headache, this turn of events should not come as a surprise to anyone that has done any due diligence on HJOE. Any investor who had been prudent enough to look at the company’s OTC Markets profile should have had enough of a warning on the matter – because in spite of what the ticker’s movements in the last few sessions suggest, HJOE‘s fundamentals look simply atrocious.
First off, its tag on the OTC Markets as “limited information” is well deserved – HJOE is months overdue on its financial reports. There is almost no reliable information on it online, and what little there is is disconcerting to say the least.
For instance, the last time the company reported, its balance sheets looked like this:
- Cash – $48 thousand
- Current Liabilities – $2.8 million
- Quarterly Revenues $48 thousand
- Quarterly net Loss – $592 thousand
And that’s not even the worst part. As far as can be gleaned from the report, between Jun. 2014 and Nov. 2014, HJOE has turned nearly half a million dollars worth of convertible debt into 180 million shares. This brings the average conversion rate to approximately $0.0025, at a time when HJOE shares were being sold for prices varying between $0.01 and $0.03 a pop.
And, believe it or not, further research can reveal details that are even bleaker. Evidently, HJOE‘s authorized share count was upped to 5 billion about three month ago. Dilution has literally rained on investors’ heads since then increasing the company’s common stock count from just over 208 million as of Oct. 06, 2014 to well over 1.7 billion as of about six weeks ago.
In light of these facts, would it really be any wonder that HJOE‘s support dwindled and the ticker fell even further in the next few sessions, in spite of showing signs of recovery in today’s early trading?
