HIGH PERFORMANCE (OTCMKTS:TBEV) Remains Highly Volatile, Crashes
At the start of August the stock of HIGH PERFORMANCE (OTCMKTS:TBEV) was sitting deep in the triple-zero price ranges trading at $0.0003 per share. Thanks to an impressive uptrend supported by hype surrounding the first production run of their High Performance Sports Drinks by the end of the month TBEV were able to reach $0.0027.
Those investors who were envisioning a smooth sale to even higher price ranges suffered a rather rude awaking though when as a result of delayed test results TBEV missed the September 5 launch date. The sell-off that followed was devastating and in a matter of just a few sessions the stock crashed back down to $0.0009. A new date was set – September 18, and the ticker quickly recovered its losses.
Although this time everything went on as planned and the beverages are now available on Amazon the past two sessions have seen TBEV sinking down the chart once more. Last Friday the correction wasn’t that alarming with the stock closing 8.7% in the red. That, however, cannot be said about yesterday’s trading. TBEV opened at $0.00235 but by the time of the closing bell they had slashed nearly 20% of their value dropping to a close at $0.0017. What could explain the inconsistent behavior of the stock ?
It is indeed true that TBEV are finally going to register some revenues on their balance sheet but that alone may not be enough to offset the rather dangerous red flags surrounding the company. The latest financial report covers the quarter ended April 30 and it definitely doesn’t inspire much confidence. The biggest problem are the $2.18 million senior convertible notes that were outstanding at the end of the period that could be turned into common shares at a significant discount to the market price.
The dilution of the common stock caused by such conversions has been truly massive – as we have said on numerous occasions in our articles in just three months TBEV issued over 2 BILLION shares out of which around 1.1 billion were priced at just $0.0005. The company increased its authorized shares to 5 BILLION creating quite a lot of room for even more conversions to take place.
In the latest PR the CEO of TBEV stated that they are looking for a long-term financial partner that can supply them with the capital needed for the expansion of their product line. If they are successful this could mean that TBEV will no longer rely primarily on convertible debt to fund their operations. For now though the volatility of the stock shouldn’t be underestimated. Do your own due diligence and adjust your trades accordingly.
