Hangover Joe’s Holding Corporation (OTCMKTS:HJOE) Still Running
The amorphous mass of hype building primarily through social media networks seems to work its wondrous magic for Hangover Joe’s Holding Corporation (OTCMKTS:HJOE). The company’s stock closed green in double digits yesterday, after it pulled itself by its own hair out of the swamp of triple zeroes on Monday. By the closing bell HJOE stopped at $0.0016 per share, or another 60% up.
The stock was idling near the bottom end of triple zeroes, never going over $0.0003 per share over the past month, prior to this last spike. So it’s only logical to assume that some truly groundbreaking news hit the wire or the company published a report that exceeded expectations by a mile. HJOE did put up a press release on May 4, concerning its Git-R-Done drink which will be featured on FIY Network’s ‘Food Factory USA’ on June 4.
This PR had no major and immediate effect on the price. HJOE started picking up huge volume and raced up the charts only last Friday. The only likely trigger for this accumulation would be the relentless torrent of hyped-up Twitter posts that the company has been flushing out. The official Twitter account of HJOE put up 117 tweets over the course of the last seven days.
Since those interested can check those 117 tweets and read all the informal, non-material, non-binding hype on there, we would rather focus on the parts which are official. Things don’t get a lot more official that an annual report that is a full month overdue, even after the company filed for a filing deadline extension. The 10-K should have been up by March 31, HJOE filed for a 15-day extension but that expired a full month ago, which is why the company is currently showing up as “Pink Limited Info” on OTC Markets.
A Schedule 13G filing indicates that as of March 28 the company had 1.74 BILLION common shares issued and outstanding. That number was a humble 331 MILLION back in mid-November, 2014. This essentially means HJOE diluted its common stock by 420% in the space of four and a half months. With a filing notifying of an increase of authorized shares to 5,000,000,000 the sky is the limit.
It’s also worth noting that the entities that were on the Schedule 13G mentioned above were branches of the Magna company, run by young millionaire Joshua Sason, famous for making his millions through death-spiral financing poured into failing penny stocks, as reported by Bloomberg.
The last available financial report from HJOE is for Q3 of last year and contains the following:
- $48 thousand in cash
- $2.8 million in current liabilities
- $48 thousand in quarterly revenues
- $592 thousand in quarterly net loss
In light of all of the above and the company’s missing annual report, investors may want to spend some extra time while doing their own due diligence on this one before making any rash moves.
