OBJ Enterprises, Inc. (OTCBB:OBJE) Sinks After Annual Report
Since our last article about OBJ Enterprises, Inc. (OTCBB:OBJE) from early August the stock of the company has been gradually sliding down the chart never capable of making more than an one-day spike. The management of the company was able to at least prevent a more steep downwards trend by sticking to their tried-and-true strategy of flooding the market with an incessant barrage of fluff press articles. Just for the months since October there have been no less than 14 distinct announcements made by the company with very few actually containing any news-worthy information.
But the biggest blow to the company came after they finally filed their annual report for the fiscal year ending August 31. Investors got so discouraged that during yesterday’s session more than 1.6 million shares, almost 10 times the average amount, got dumped on the market. As a result OBJE slashed nearly a quarter of its value dropping to 23 cents per share. The numbers contained in the report that got traders scrambling to get away were the following:
- $75 thousand cash and total assets
- $168 thousand total liabilities
- zero revenues
- $860 thousand net loss
If you take the time to read the entirety of the file you will find quite a few causes for concern. The accumulated deficit has now become more than $3 million, the management believes that the current funds may not be enough to even maintain their reporting status and at least another $120 thousand will be needed to continue witth their business plan. This only means one thing – even more dilution. In November last year OBJE did a one-for-forty reverse split of their common stock but since then 14 million newly issued shares have seen the light of day. With an authorized amount of 100 million shares there is quite a lot of room for new convertible notes.
We always warn our readers that it is always for the best to do their own due diligence and never take any of the PR articles at face value. Pennystocks are notoriously volatile even without the added pressure of any artificial hype.
This week another pennystock that strives to be a game developer surfaced among the top-traded stocks – Soul and Vibe interactive Inc. (OTCBB:SOUL). The company is certainly among those with the most pumps for the year. They rely only on the email touts from the pump newsletters to push their stock in a positive direction due to SOULL having no revenues and no completed product.
