HIGH PERFORMANCE (OTCMKTS:TBEV) Remains Highly Volatile
The stock of HIGH PERFORMANCE (OTCMKTS:TBEV) has been jumping all over the chart recently making wild swings in both directions. Last Friday the ticker soared by over 63% and closed at $0.0018 but when the market opened after the weekend it immediately plunged downwards registering a loss of 22% and returning to $0.0014 per share. Yesterday’s drop took place on a volume of 260 million shares, the biggest daily volume seen by the company since June.
Some may find the severe crash rather puzzling especially after the PR that TBEV published early in the morning yesterday. In it the company announced that the initial 60,000 bottle test run of its High Performance Sports Drink was successfully completed. Pre-orders for the drinks are now available and TBEV expects that consumers will be able to purchase their products on Amazon starting September 5. This is a major event for the company but apparently investors were far from impressed. And there are several very good reasons why TBEV should be considered as a risky choice.
As we said the company is just launching its products and revenues might finally start flowing in. The problem is that TBEV’s financial state is simply atrocious – the latest quarterly report covering the period ended April 30 contained the following numbers:
• $308,010 cash and total assets!!!
• $4.12 million total liabilities
• Zero revenues
• $283 thousand loss from operations
For the nine months since June 30, 2014, TBEV have incurred a net loss of nearly $3.5 million while the working capital deficit stands at around $3.8 million. The quarterly report revealed an even bigger red flag though – the crushing dilution of the common stock.
Back in February TBEV performed a 1-for-10 reverse split and as of March 20 the company had 212 million outstanding shares. Just three months later, however, the outstanding shares had already surpassed 2.25 BILLION, an increase of 950%. The issuance of shares may not be coming to an end anytime soon thanks to the recently increased authorized amount – from 2.5 billion shares to 5 billion shares.
TBEV may finally become a revenue-generating entity but they lack the necessary resources to support their plans. The company has stated that they are currently negotiating deals that will provide them with long term working capital, which could very well lead to even more shares seeing the light of day. That is why it is paramount to do your own due diligence before committing to any trades involving the stock.
