Hangover Joe’s Holding Corporation (OTCMKTS:HJOE) Springs Up Again
Hangover Joe’s Holding Corporation (OTCMKTS:HJOE) managed a 29.63% recovery yesterday, in spite of all the controversy and red flags surrounding the company lately.
Suffice it to say that there is quite a lot of excitement pushing the ticker around, and it is really difficult to pinpoint the hype’s exact origin. As we mentioned in a previous article, there has been quite a bit of Twitter spam recently, that yesterday managed to escalate to insults and threats.
Although it is difficult to believe that HJOE itself is behind it, this type of thing does not bode well for the company. And, as we’ve mentioned before, this is by far not the first or biggest red flag that a bit of research reveals on HJOE.
The red warning sign in its OTC Markets profile that says “limited information” pretty much says it all. HJOE has been woefully negligent in its in filing its financial reports. Its latest filing declared that the annual report for 2014 “will be filed on or before the fifteenth calendar day following the prescribed due date”. As its OTC Markets profile can attest, that report is still nowhere to be found.
This more or less means that all that investors have to go on is woefully outdated financials – and horrible ones at that:
- Cash – $48 thousand
- Current Liabilities – $2.8 million
- Quarterly Revenues – $48 thousand
- Quarterly net Loss – $592 thousand
The situation is made even worse by the frightful state of HJOE‘s share structure. Suffice it to say that between June 2014 and Nov. 2014, the company has converted about $0.5 million worth of promissory notes into 180 million shares. And if that wasn’t depressing enough, HJOE‘s shares authorized were increased to 5 billion three months ago. Investors have been drowning in dilution even faster since then, with the company’s common stock count rising from just over 208 million on Oct. 06, 2014 to well over 1.7 billion about six weeks ago.
Investors might want to consider all these facts when making up their mind about HJOE.
