New Wave Holdings Inc (OTCMKTS:NWAV) Becomes Interesting All of a Sudden

We’ve taken a look at New Wave Holdings Inc (OTCMKTS:NWAV). We’ve gone through the financial reports, we’ve done the research, and, well, we’ll just put it mildly and say that you really have to be feeling adventurous if you’re willing to put your money in this particular stock. Either that, or you have to skip on the due diligence.

For one, NWAV isn’t exactly what you’d call a market darling. In fact, it has spent years on end with the dollar volume rarely exceeding a few thousand dollars per day. And that’s not really that much of a shock.

The public entity was originally incorporated in 2003 and since then, it has gone through 9 (Nine!) name changes. What’s more, over the last nine years, its tormented shareholders have experienced 5 reverse splits. That’s an average of one reverse split for every twenty-two months.

NWAV failed to file its Q2 report on time which means that the latest financial statement is now more than four and a half months old. And it’s not particularly informative. When you compare it to the annual report for last year, you’ll see that the number of issued and outstanding shares has grown from just under 25 million at the end of 2014 to over 92 million on March 31. No information is given as to who or why got the newly printed stock.

What the report does say, however, is that the company was in a big mess at the end of Q1. Here’s a snapshot of the financials:

• NO current assets
• current liabilities: $450,260
• NO revenues since inception
• quarterly net loss: $76,788

Last but not least, you mustn’t forget who runs the company. The Chairman of the Board and interim CEO is called Mark Newbauer and he owns some preferred stock which basically gives him controlling interest over NWAV. Apparently, however, running one OTC enterprise is too easy for him because he is also at the helm of a company called Mike the Pike Productions (OTCMKTS:MIKP). MIKP is currently traded on the Grey Market at a price of $0.0001 per share. That’s because back in 2012, the SEC had some questions about the accuracy of the company’s press releases and financial statements.

All in all, as we mentioned already, there’s no shortage of things that could put you off of NWAV. Yet, people don’t seem too bothered about the red flags. Yesterday, in a matter of just six and a half hours, they poured more than $146 thousand into the stock and they pushed it up by about 13% which means that it’s currently sitting at $0.0017.

The reason for the excitement is a press release which said that a leading provider of financial, mobile, and payment technology (whose name remains a secret for now) has expressed its intent to act as the program manager for NWAV‘s SchoolFuel fundraising program. Details are scarce for the time being, but Mr. Newbauer promised to shed more light on the upcoming deal in the near future.

The news sounds good, but you still have to ask yourself: “Is a single press release enough to keep the stock afloat?”.

The people who invested their hard-earned cash in Mike the Pike Productions a couple of years ago thought that it is.