High Performance (OTCMKTS:TBEV) Gets Another Correction

Evidently the recovery that High Performance (OTCMKTS:TBEV) saw on Thursday was not to last, and the ticker crashed 20.83% on Friday on the largest dollar volume the stock has seen in more than two months.

There doesn’t seem to be a particular reason for said crash, beyond TBEV‘s unimpressive state and the fact that it appears ridiculously oversold for what it is. And what it is seems to be just one of a multitude of mediocre OTC Markets pinksheets penny stocks.

Its financials certainly classify it as such:

• Total assets – $308 thousand in cash
• Current liabilities – $4.1 million
• NO QUARTERLY REVENUES
• Quarterly net loss – $283 thousand

And if you thought that was mediocre, you should definitely check out TBEV‘s share structure, as it is an even bigger, more glaring red flag than the company’s meager financials.

Suffice it to say that $2.18 million of TBEV‘s debt consists of convertible notes. Large amounts of those notes have already been converted into shares, and as a result TBEV‘s shares outstanding has ballooned from 212 million as of Feb. 2015 to 2.2 BILLION as of June 18, 2015.

Investors would do well to keep in mind that this is by no means the first time that TBEV has issued such ridiculous numbers of shares. In fact, in order to make its stock liquid so that it could keep printing discounted shares, TBEV was forced to perform a 1 for 10 reverse split on Feb. 25, 2015.

The fact that 1.1 billion of the issued shares were converted at prices of just $0.0005 just seems to add insult to injury.

Of course, it is up to investors to decide whether or not they wish to suffer TBEV‘s investor value destroying actions any further. Still, the usual words of warning are definitely in order – let the buyer beware.