Kimberley Parry Organics Corp (OTCMKTS:KPOC) Flies To New 52-Week Highs
Yesterday’s session wasn’t a smooth sail for the stock of Kimberley Parry Organics Corp (OTCMKTS:KPOC) but nonetheless it managed to close at its highest point for the day, and a new 52-week record, of $0.59 per share. This means that at the moment the market cap of the company stands at over $97 million. Is such a valuation even slightly warranted though?
Well, it seems safe to say that these numbers have absolutely no connection with the underlying fundamentals of the company. KPOC’s latest financial report covers the quarter ending February 28 and according to it back then they had:
• ZERO cash
• $252 thousand total current assets
• $2.9 million in current liabilities
• $39 thousand in quarterly revenues
• $95 thousand in quarterly net loss
The annual report that KPOC are supposed to file by the end of the month will give investors a more up-to-date picture of the company’s financials but it wouldn’t be a surprise if the report gets delayed. After all, the Q1 report was filed nearly 3 months after the deadline while for 2014 KPOC have only two reports and they were filed in January, this year.
In addition, for the past five years the company has implemented three reverse splits with the last one being a massive 1-for-8000 reverse split from April 2014. Subsequent to the split KPOC were left with approximately 1,052,422 outstanding shares. According to the OTCMarkets profile of the company as of April 11, 2015, there were 164.7 million outstanding shares. Nearly all of the newly issued shares, or 152,876,900 to be precise, came into existence on June 3, 2014, as a reduction of a note payable and were valued at $0.0001.
If the annual report doesn’t show a dramatic improvement of KPOC’s balance sheet the company may find it nearly impossible to sustain its current share prices. Approach the stock with caution and commit to trades only after doing extensive research.
