High Performance (OTCMKTS:TBEV) Marches North
Twelve months ago, High Performance (OTCMKTS:TBEV) was flirting with the $0.014 mark (split-adjusted). Right now, it’s sitting at $0.0027 or exactly 80% below that price. It is moving, though.
The ticker exited the triple-zero levels last month and although there are the inevitable corrections every now and then, it seems to be determined to continue on its way up. Yesterday, for example, it gained a massive 68% and it reached its highest close in five and a half months.
Investors are quite excited about the company and, at first glance at least, rightly so. The production of TBEV‘s much awaited sports drink started on schedule, the initial run was successfully completed, and pre-orders were initiated last week. The actual sales should start on Saturday and they will also be done through Amazon.
TBEV announced that they want to get to as many potential clients as possible and in order to do that, they said that in addition to the celebrity endorsement deals that are already in place, they are about to launch a social media and marketing campaign. They will try to raise awareness by sharing a marketing video which, though good-looking, isn’t extremely informative. They also posted a link to a recent interview with Toby McBride, TBEV‘s CEO.
To say that Mr. McBride is excited about the future would be the understatement of the century. He said during the interview that his company is about to “flip our industry upside down”. He also launched an outright attack on the big boys in the business like Gatorade, The Coca-Cola Co (NYSE:KO), PepsiCo, Inc. (NYSE:PEP), and Monster Beverage Corporation (NASDAQ:MNST), he said that their products don’t really work, and he proudly announced that he knows how to “cripple these companies“.
To recap, TBEV has increased its value almost ten-fold in a matter of less than four weeks thanks to an initial production run, a marketing campaign, and twenty minutes worth of bombastic claims. Apparently, investors reckon that this is enough to justify the massive surge. We’ll now see if it’s enough to support the ticker at the current levels.
As long and as optimistic as Mr. McBride’s interview is, it fails to touch upon some quite important questions like TBEV‘s financial situation. And that’s somewhat worrying, not least because the latest 10-Q isn’t exactly perfect. Here’s a summary of the figures recorded on April 30:
- total assets: $308 thousand in cash
- current liabilities: $4.1 million
- NO quarterly revenues
- quarterly net loss: $283 thousand
Mr. McBride also seems a bit reluctant to talk about the absolutely ludicrous dilution that TBEV went through a few months ago. The company completed a 1 for 10 reverse split at the end of February and it emerged from it with an O/S count of about 212 million. On June 18, less than four months later, it was sitting at well over 2.2 billion.
Last but not least, Mr. McBride failed to say that about 88% of the total O/S count was issued as a conversion of debt and he didn’t say that at least 1.1 billion shares saw the light of day at an average rate of just $0.0005 per share.
What he did say, however, was that the company will not rely on convertible notes in the future. He said it just days after he and his colleagues raised the number of authorized shares from 2.5 billion to 5 billion. Once again, it’s up to you to decide whether that is enough to stabilize the stock.
