Kimberly Parry Organics Corp (OTCMKTS:KPOC) Closes Green After Turbulent Session
Yesterday’s trading was quite hectic for the stock of Kimberly Parry Organics Corp (OTCMKTS:KPOC). The ticker began the trading day at $0.68 per share but right before noon it found itself at a low of $0.58. For the rest of the session, however, it reversed its direction and by the time of the closing bell KPOC had reached $0.74 for a gain of 8%. This means that at the moment the company commands a market cap of nearly $85 million.
How truly unrealistic such valuation is becomes painfully obvious when you take a look at the last reported financial results of the company. At the end of February KPOC had:
• ZERO cash
• $252 thousand total current assets
• $2.9 million current liabilities
• $39 thousand quarterly revenues
• $95 thousand quarterly net loss
It is true that these numbers represent the state of the company over six months ago and by now KPOC might have been able to drastically improve their balance sheet. If this is the case should have been revealed in the annual report that was supposed to be filed by the end of August. Unfortunately, KPOC were not able to do so and instead, on September 1, they submitted a notification of late filing, which gives them a 15-day extension so the report should be ready by September 15. The reason that was given for the delay? – “accounting records not ready”. This situation should not have come as a surprise. After all, the annual report for their fiscal year ended May 31, 2014, saw the light of day five months after the required deadline.
Investors should also try not to forget that in January 2013 KPOC did a 1-for-23 reverse split. A little over a year later, in April 2014, the company was forced to implement another reverse split – this time at a ratio of 1-for-8000. In June 3, 2014, a total of 152 million shares valued at $0.0001, were issued as a reduction of a note payable.
The red flag surrounding the company should not be underestimated in the slightest. Do extensive due diligence before committing to any trades involving the stock.
