Jammin Java Corp. (OTCMKTS:JAMN) Gets Right Back Up
Jammin Java Corp. (OTCMKTS:JAMN) crashed horribly when it became obvious that the SEC is suing its former CEO for orchestrating a pump and dump scheme.
Although nowadays pumps aren’t exactly rare, being associated with an alleged perpetrator in a pump and dump scheme is as bad publicity as one can get. Having had one as the company’s CEO is disastrous for a company’s market cap, as it destroys investor trust faster than you can say “fraudster” – and the results of that are quite obvious.
Just one session cost JAMN 62.75% of its market cap. However, now it is on the road to recovery, with a 100% jump yesterday. What gives?
Well, as bad as its publicity is, investors have rightly noted that unlike other companies in the same boat, JAMN actually has something to its name:
- Cash and cash equivalents – $51 thousand
- Total Current Assets – $1.5 million
- Total Current Liabilities – 3.8 million
- Net revenue – $2.9 million
- Net Loss – $968 thousand
So, while it is obviously struggling to make ends meat and failing miserably, the company is at least making revenues, and one look at its previous filings shows definite improvement year over year, which is something that JAMN has going for it.
Unfortunately, that’s not the only thing that said filing shows. A quick search shows that the company still has convertible debt that can be turned into common stock at toxic rates of discount. Suffice it to say that this doesn’t add to the veracity of the claims that the company has broken all ties to its dubious past.
Investors should definitely take that into account when making up their mind about JAMN.
