International Spirit & Beverage Group, Inc. (OTCMKTS:ISBG) Is Still Flying
International Spirit & Beverage Group, Inc. (OTCMKTS:ISBG) managed to continue its surge with another 44.44% up yesterday, after announcing that its board of directors will be buying out some 300 MILLION shares of its own common stock.
This demonstration of confidence convinced quite a few investors to commit – and it’s no wonder that it did. This represents a bold move on the BOD’s part, and will effectively remove the shares they by out from circulation for a whole year. That’s good news, right?
Well, in order to be able to judge the worth of the news itself, one has to take it in the overall context of the situation in which ISBG is right now. This is where things start getting interesting, because as far as due diligence is concerned, ISBG seems to be in very poor shape:
- Cash – $0.3 thousand
- Total current assets – $466 thousand
- Total current liabilities – $436 thousand
- No Revenues
- Net loss – $368 thousand
Yes, that’s right – last time it reported a couple of months ago, the company had just three hundred dollars to its name. That’s pathetic enough in and of itself, and sort of explains why ISBG has been stuck at the very bottom of double zero land for so long – but unfortunately, that’s not the only shortcoming that the company demonstrates.
A quick check reveals that a couple of weeks ago, ISBG had 619 MILLION shares outstanding. About 14 months ago, that number was as low as 283 million – and since the company’s reports are quite minimalistic, there’s no telling just how cheap those shares were issued. So even if ISBG‘s BOD bought out those shares, at the very best, this act could be classified as an attempt to mend some damages already done to the company’s severely compromised share structure.
Long story short – ISBG‘s bravado is impressive, but everything else that the company has to offer is not. Lofty words have managed to push the ticker up for a brief moment, but how long can that last, when everything else about the company seems to scream “mediocre”?
