High Performance (OTCMKTS:TBEV) Finally Stumbles
High Performance (OTCMKTS:TBEV) managed an amazing jump on Monday, but unfortunately for its supporters, it failed to maintain its market cap gains. Yesterday’s session cost it 7.41% of its market value, and by the look of things, the ticker may suffer further corrections in the sessions to come. Why?
In spite of Mr. McBride’s ridiculously boastful and obviously unrealistic claims that TBEV is about to “flip our industry upside down”, TBEV doesn’t seem to have much to its name. The quarterly report for the period ended April 30, 2015 showed as much:
- Total assets – $308 thousand in cash
- Current liabilities – $4.1 million
- NO QUARTERLY REVENUES
- Quarterly net loss – $283 thousand
How Mr. McBride intends to run down and tackle mega-corporations such as The Coca-Cola Co (NYSE:KO), PepsiCo, Inc. (NYSE:PEP), and Monster Beverage Corporation (NASDAQ:MNST) with TBEV‘s balance sheets looking that horrible is a mystery.
And while on the subject of horrible things – TBEV‘s share structure definitely deserves special notice. Some basic due diligence reveals that the company performed a 1 for 10 reverse split at the end of February 2015, reducing its O/S count to approximately 212 million. Well, as of June 18 that number had ballooned all the way to 2.2 BILLION.
88% of that 2.2 billion shares was issued as a result of conversions of highly toxic debt, and fully half of those 2.2 billion were converted an average rate of just $0.0005 per share. And if at this point you think that things can’t get any worse, you’d be wrong. The company has just upped its number of authorized shares from 2.5 billion to 5 billion, which can be taken as a sure-tell sign that even more dilution is on its way.
This being the case, is it really any wonder that TBEV is currently stumbling, and that it may well continue to do so in the foreseeable future?
