Kraig Biocraft Laboratories, Inc. (PINK:KBLB) Breaks Through 10 cents

The past week turned out amazing interest for Kraig Biocraft Laboratories, Inc. (PINK:KBLB), a heavily promoted stock that managed to breach the 10-cents level, adding 12% on Wednesday. While Thursday opened with selling, the promotional efforts surrounding this ticker are wide and deep, and we may expect the investors’ interest to remain strong.

The development of genetically engineered spider silk is still in its early stages, and this leaves KBLB vulnerable because of its iffy financial situation:

• $136,347 cash

• $161,043 total assets

• $1.091 million total liabilities

• Zero revenues

• $292,515 net loss

As it is easily seen, a long development period has left KBLB burdened by debt, and in the past six years the company has accumulated more than 8 million losses. Its business plan seems to do more to create credibility among investors and PR messages, rather than revolutionize society and the way fabrics are produced.

The latest message is from March 19th, where KBLB explains it managed to produce cocoons of silk worms with increased strength. The company even promises that it is nearing viable production sooner than expected, but we have to wait and see how this yarn unravels.

The promotions for KBLB started in earnest in mid-February, and the last email landed inboxes on March 8th, but the stock has remained supported by press releases. The total budget for several larger or smaller pumpers was $160,000, a significant amount, and for March the stock was mentioned in five emails. The catchphrase for KBLB has been “better than the fountain of youth”, suggesting that using spider silk may have been one of mankind’s permanent dreams. But in case of promoted stocks, a dream may be all one gets.

The promoters for KBLB have been difficult to identify, with unknown paying parties. Only one name, Profit Status LLC, which received $80,000 and seems to be an entity devoted to only promoting KBLB. In any case, too much attention has gone into the KBLB stock and if you seem to like its story, it is best to estimate if you can afford the losses if this ticked moves down after the promotional efforts slow down.