High Performance. (OTCMKTS:TBEV) Gets Smashed Again

High Performance. (OTCMKTS:TBEV) managed two good green sessions at the end of last week, but unfortunately for its fervent supporters, its upward momentum didn’t last. Yesterday saw the ticker drop 18.18% after trading more than 224 million shares. So why is this happening if things are going so well?

At the beginning of October, TBEV was awarded the Performance Punch a #1 Best Seller badge in the nutrition category by Amazon.com, Inc. (NASDAQ:AMZN) for selling its initial inventory in under 48 hours. This is definite proof that consumers are obviously interested in what TBEV has to offer to its customers.

The company’s latest jump was made possible by the announcement that it has entered into “agreements to obtain up to $5 million dollars in additional financing”. Add that to the declaration that in the last two months TBEV has “retired four convertible notes” and that the company “seeks to consolidate certain other outstanding debt” and it should be pretty obvious why investors were suddenly keen to jump on the TBEV hype train. Sadly, that train was quickly derailed, for one simple reason.

Although TBEV claims to be taking steps to fix the situation, the sad truth is that its investor value is drowning in toxic dilution. Since it is a Pinksheets company, and thus not all that keen on filing 8-K reports, there is no way to really know if it is really making progress.

It had better be, because if it is up to its old tricks, investor value is in serious trouble.

To elaborate – back in February, TBEV went through with a 1 for 10 reverse split which brought its shares outstanding down to about 212 million. By the time June rolled along, the O/S count was back at over 2.2 billion.

And this is where ANOTHER huge red flag can be found. The company claims to be making steps towards mending its ways, reducing toxic dilution and retiring promissory notes is directly contradicted by its recently upping its shares authorized to 5 BILLION.

As usual, it is up to investors to judge whether TBEV is the hot new thing that will take them to the top or just another perilous pitfall. Our advice, as always, is – don’t give into hype, do real due diligence and be very careful and vigilant when committing to volatile stock.