High Performance Bev (OTCMKTS:TBEV) is as Energetic as Ever
A year ago, the company that we now know as High Performance Bev (OTCMKTS:TBEV) was called Dethrone Royalty Holdings and it was traded under the DRHC ticker symbol. Lots of people were quite excited about the opportunity presented by the stock.
They were hoping that DRHC will be successful in marketing the Dethrone line of beverages. In order to do that, the company had to keep the licensing agreement for the said products in place and this, in turn, was dependent on registering at least $3 million in yearly revenues.
Unfortunately for the shareholders, DRHC never even got close to the required figures and the licensing agreement was terminated in October 2013. That was a rather big blow, but the management team weren’t ready to throw in the towel.
Shortly after the termination of the first license, they came up with a second one, this time for the marketing and selling of another brand of drinks called Throwdown. Although there can be no guarantees that they will be able to stick to the terms of the new deal, we should note that they are a bit more realistic – during the calendar 2014, the company needs to log sales of at least $1 million.
Despite this and despite the fact that TBEV went through the trouble of changing the name and ticker symbol, investors didn’t really seem to pay attention to the stock. Between October 2013 and May 2014, the ticker lost quite a big chunk of its value while the volumes registered were somewhat negligible.
Last week, the company issued a couple of press releases and this, it seems, was enough to completely transform the market sentiment. The first announcement came out on Wednesday and it informed us that TBEV have secured $1.5 million in debt financing. The second one hit the wire about an hour before Friday’s opening bell and it told us that the distributors are waiting for the Throwdown drinks to start rolling off the production line. TBEV also said that they’re in the middle of negotiations with some firms who will be happy to market the beverages overseas.
The two press releases caused a lot of stir. Three sessions of intense trading resulted in a cumulative dollar volume in excess of $3.6 million and a price jump of a whopping 900%. TBEV is now well above the $0.01 mark for the first time since February, but it would appear that the management team want to see a bit more action.
About an hour before today’s opening bell, they issued a third press release with which they said that they’re now in the process of printing Throwdown’s labels and informed us that they will do everything they can to put the products on the shelves as quickly as possible. Apparently, their words are affecting investors.
About thirty minutes into the session, TBEV is a further 30% above last week’s close and according to some people on the message boards, a run to $1 per share is not only possible, but inevitable.
We’ll leave it up to you to decide whether they’re right or not, but while you’re making up your mind, you might want to consider one or two things.
If they are to avoid the termination of a second licensing agreement, TBEV need to act quickly. They’ve got a little over six months to log $1 million in revenues and according to the press releases, the Throwdown beverages aren’t even in the supermarkets yet.
The toxic debt that we talked about last week, on the other hand, could severely cripple the stock. The management team might want to think about the company’s credibility as well.
If you check out the address of TBEV‘s headquarters in Google Maps, you’ll see that the principal offices are located in a residential house and we really aren’t sure if this is the appropriate building for a solid company working in the huge beverage industry.
