Lions of Wall Street Give Kiwa Bio-Tech Products Group Corporation (PINK:KWBT) Another Shot
You can always tell when the promoters are quite desperate. And, if we have to be honest, we sort of feel for them every once in a while. After all, it’s not easy to write something positive for companies like Kiwa Bio-Tech Products Group Corporation (PINK:KWBT). But write they do and investors get burned, so it’s essential to think twice before jumping in on the hype.
Today’s alert on KWBT is coming from Lions of Wall Street and we can imagine how long it took them to compose the rather short and poorly formatted email. At the beginning of their narrative they say that KWBT‘s shareholders decided not to increase the number of authorized shares for now, which means that there will be no dilution… and then repeat the same thing a number of times. At first it may seem like good news to current and future shareholders, however as soon as you look through the financial statement you will see that it’s absolutely irrelevant. But should you consider investing in KWBT?
In a word, no and if we have to be completely honest we are struggling to see what will make KWBT a viable alternative. In order for this to happen, KWBT will need to have a few qualities that they currently lack: a product that can be marketed, sufficient financial backing in order to pay for the operations, and a management team that can bring the company into the spotlight. If they have all these in place, the revenues will soon start flowing. Unfortunately, they don’t.
Let’s start with the financials. Here’s a recap of the most important figures in their latest report:
- cash: $13 thousand
- current assets: $39 thousand
- current liabilities: $11 million
- accumulated deficit: $21 million
- no revenue
- net loss for Q3 of 2012: $252 thousand
Further down in the report they say that they have defaulted on two notes, one of which for $2.45 million. Another thing that you can find in there is the fact that they have been developing the bio-techy fertilizers and livestock feed and all the other products that they talk about on their website for nearly nine years, yet there is still no revenue. We wonder, what’s taking them so long and, more importantly, will they ever be ready?
There really is nothing positive that can be said about KWBT and the fact that they are being pumped by newsletters brings down the company’s credibility even further. It’s not the first time that an email about KWBT has reached our database, although the previous efforts made no impression on the performance of the stock.
Of course we can’t just ignore today’s promoter, Lions of Wall Street (LWS). It’s funny that they have chosen such a name since, normally you would associate a lion with pride and majesty. LWS’ track record doesn’t look majestic at all and it’s certainly nothing to be proud of. Truli media Group Inc (PINK:TRLI), for example, were promoted back in November, and since then, they have wiped out a whopping 87% of their value.
