Mike Statler Loses the Plot with Safer Shot, Inc. (OTCMKTS:SAFSD)
After sitting silent for more than a few months, Mike Statler, the fictional name of Stock Tips’ co-editor, first reminded everybody of the outfit’s existence back in June when he said that his “next huge pick” is coming. He then teased his subscribers for a while and he finally unveiled it yesterday. It’s called Safer Shot, Inc. (OTCMKTS:SAFSD).
Stock Tips is without a doubt one of the more influential promotional newsletters around and its picks are often eagerly awaited. When people saw SAFSD, however, many were a bit underwhelmed.
It all looks like a normal Stock Tips pump at first glance. The emails look the same, the longer-than-necessary video is there too, and so is the budget which, at $1.9 million, sounds just as far-fetched as Mr. Statler’s promises of wealth and fortune. Yet, when you look at SAFSD‘s chart, you’ll see that the stock is firmly anchored to the $0.0001 per share mark. A price as low as this is extremely unusual for a Stock Tips pick.
Mr. Statler says that there’s a perfectly good explanation for this. According to his emails and videos, being glued to the bottom means that SAFSD has limited downside potential and that even the smallest surge in the right direction will provide investors with an opportunity for a big profit. He also says that unlike the rest of the $0.0001 companies, SAFSD is actually a solid entity.
We’re not sure about the latter. In fact, although the business plan and the demonstration videos look promising enough, SAFSD have yet to monetize on their less-than-lethal weapons. The latest financial report is pretty ugly as well:
- current assets: $443 in cash
- current liabilities: $110,216
- quarterly revenues: $20,000
- quarterly net loss: $9,134
The report says that the revenues you see above don’t come from selling products, but from “extraordinary gains” and it then gives absolutely no explanation as to what those gains consist of. We reckon that the rest of the statement is so abysmal, that it simply requires no further comment. It isn’t the only thing keeping SAFSD anchored to the bottom, however. The share structure is also playing a part.
In January, SAFSD effected a 1 for 1,000 reverse split which pushed the O/S count down to less than 1 million. Unfortunately, this state of affairs wasn’t going to last. The company then printed quite a lot of stock which pushed the number of issued and outstanding shares back to a little more than 1.1 billion in no time. On September 24, in a move that is extremely hard to explain, the company effected its second stock split of the year – this time a 1,000 for 1 forward one.
This means that the ticker currently consists of five symbols and it also means that at the moment, there are (make sure you’re sitting down) 1,160,916,581,000 shares of SAFSD common stock issued and outstanding.
With an O/S count as huge as this and with a market cap that sits at a little over $116 million, SAFSD‘s stock will have a really hard time moving north. Mr. Statler is right about one thing, though – if the ticker manages to go up even a pip, it will provide investors who have timed their entry points well with an amazing profit opportunity.
Then again, you mustn’t forget that there will be more than a few things that could be holding it back. More specifically, there could be exactly 100,000,000,000 things that could keep it stuck at $0.0001.
Here’s a more detailed explanation: in March, an entity called Acquest Capital Group, Inc received a whopping 100,000,000 shares as a conversion of debt. Thanks to the colossal forward split from last month, Acquest could now be holding on to as much as 100,000,000,000 shares of common stock. And they could be eager to unleash them on the open market.
