Kimberly Parry Organics Corp (OTCMKTS:KPOC) Shows No Intention of Slowing Down
Kimberly Parry Organics Corp (OTCMKTS:KPOC) has been doing something that most penny stocks can’t even dream of doing – it has been performing rather well. In fact, the chart is beginning to look better and better by the day.
After months of sitting pretty much idle, the stock shuffled up in July. The movement was quite shaky at first, but the volumes grew steadily and by the beginning of last month the $0.60 and $0.70 per share barriers were history. Instead of hitting some sort of resistance at these levels, however, KPOC seemingly became even stronger and it’s been steadily climbing ever since. The latest red session was registered almost four weeks ago and since then, the ticker has managed to plough through the $0.80 mark. Yesterday, it gained another 4% and it stopped at exactly $0.90 per share which goes to show that this threshold might not be a big problem as well.
The price isn’t the only thing that has been growing. The surge of interest from investors means that KPOC has been transformed from a rather illiquid ticker into one of the most actively traded stocks on the OTC. Clearly, there’s no shortage of people who reckon that the company has a few things going for it. But is this really the case? Or are investors a bit too optimistic?
Well, the press releases certainly sound fine enough. Yesterday, the company announced that it’s moving to a new facility which should meet the expected demand growth while also improving the profit margins. Prior to that, KPOC made more than a few announcements about international purchase orders, expansions, and other deals which suggest that the business is growing.
The news is definitely good, but apparently, it alone isn’t enough to push the ticker on such a remarkable run. Various people around the message boards are saying that they have received unsolicited phone calls from an unknown outfit in New Jersey. The person on the other end of the line is apparently quite excited about KPOC and he/she is trying to spread the optimism around. In other words, KPOC is being pumped through the phone.
The campaign is proving to be surprisingly successful, and that’s becoming a worry because at the moment, KPOC‘s market cap according to the OTC Markets sits at a little over $100 million and that seems absurd in light of the figures found in the company’s latest financial statement:
- NO cash whatsoever
- current assets: $311,594
- current liabilities: $1,471,438
- yearly revenues: $264,549
- yearly net loss: $1,461,724
The revenues have indeed grown quite a bit during the latest fiscal year, but they’re still not enough to cover the huge expenses. The lack of cash alone could be enough to scare away some of the more risk-averse investors and the debt is worrying as well.
Speaking of which, some of liabilities consist of convertible notes. KPOC decided not to disclose the conversion provisions and, thanks to the liberal alternative reporting standards, they’re not going to get in trouble for this. They did say, however, that on March 31, 2015, they satisfied $10,820 worth of debt and interest with the issuance of 10,820,000 shares of common stock.
If you happen to get a phone call from a person who is talking about KPOC, make sure you ask them what would happen if those particular shares flood the open market.
