Is New Generation Consumer Group Inc. (OTCMKTS:NGCG) Headed Further Down?
New Generation Consumer Group Inc. (OTCMKTS:NGCG) had a nasty tumble in the last three sessions – but will its fall continue?
As usual, due diligence on the company in question can provide investors with valuable insight as to where stock prices might be heading. Judging only by its financials, NGCG is not in in such a bad shape:
- cash – $95 thousand
- total assets – $512 thousand
- total liabilities – $205 thousand
- annual sales – $913 thousand
- annual net income – $153 thousand
Although these numbers are modest, they are by no means the worst the OTC Markets has seen. No, NGCG‘s biggest problem lies in its history of rampant dilution.
A brief recap of that goes as follows:
- Oct. 2014 NGCG performs a 1 for 1,000 reverse split and has just 1.6 million shares outstanding to its name
- Dec. 31, 2014 outstanding share count reaches 56 MILLION
- Feb. 4, 2015 the company has 484 MILLION shares outstanding
These figures more or less speak for themselves. Add the fact that the company also has a history of paid pumps by none other than the notorious StockMister and the picture becomes even more grim.
This is why it wouldn’t really be surprising to see the ticker continue its ride further down the charts, in spite of the rather optimistic PR the company just slapped on the top of NGCG newsfeed.
