High Performance (OTCMKTS:TBEV) Accelerates Its Drop
On Friday the stock of High performance Beverages Co (OTCMKTS:TBEV) suffered another harsh blow. It crashed by 31% and dropped down to a close at $0.0002. This means that the company is now sitting at its current 52-week low. While it could seem strange to say this but the massive loss may not be the most alarming thing about the session. Far more troubling is the fact that the daily volume stands at more than 500 million shares.
In order to realize the significance of that number let’s remind you that at the end of February, this year, TBEV performed a 1-for-100 reverse split and as a result as of March 18 the company reported having around 54 million outstanding shares. The dilution that has been taking place since them, however, is simply mind-boggling. By April 20 the company had managed to more than double its outstanding shares, to 115 million shares, but even that number is no longer relevant. Not when , as we said earlier, more than 500 million shares changed hands in a single day at the end of last week.
Opening the quarterly report covering the three months ended January 31, 2016, makes the situation even worse. According to it back then TBEV had:
• $17,343 cash
• $38,282 total current assets
• $7.4 million total current liabilities
• $10,743 revenues
• $1.12 million net loss
For the first half of its fiscal year TBEV has incurred a net loss of nearly $4 million while the revenues stand at a little over $40 thousand. The company has extremely limited cash reserves and a massive working capital deficit. Out of the reported liabilities nearly $3.4 million consisted of convertible notes payable.
The myriad of red flags and the fact that the company has been silent for over a month now (the last PR outside of the SEC filings was published on April 28) turn TBEV into an extremely dangerous choice. Any trades involving their stock must be preceded by careful planning and thorough due diligence.
