Premier Brands, Inc. f/k/a Tracksoft Systems Inc (OTCMKTS:BRND) Rides the Hype

In as few as six sessions Premier Brands, Inc. f/k/a Tracksoft Systems Inc (OTCMKTS:BRND) has gained more than 1000%.

Yesterday BRND bounced back 36.88% after losing 29.2% the day before. The price at the close was $0.0219 per share and the volume was just shy of 50 million shares.

If someone’s wondering what the deal is, the hype started on Jul. 10 when the company announced it had developed Bad Boy Vodka (BBV). The brand is associated with basketball legend Dennis Rodman.

Details about the deal haven’t been disclosed, except that the launch will start on Jul. 27 in California, and BBV will be sold and distributed exclusively through BRND‘s distribution channels.

Any association with a celebrity of Rodman’s caliber is a significant achievement for a small OTC company, but investing on hype and limited information maybe dangerous for inexperienced traders.

There have been a lot of failures of celebrity liquor brands in recent years, and few success stories. Additionally, at this point, the public has no way of knowing the financial details of BRND‘s involvement with BBV.

On top of that, the number of shares traded in the first three sessions after the annoncement exceeded the latest available number of the outstanding shares of BRND. While that’s not necessarily indicative of any wrongdoing, it is extremely uncommon.

In BRND‘s case it may raise some concern, as previous financial reports featured $3.4 million in convertible notes with convertible prices a lot lower than the current market price. The company was supposed to file a quarterly report on Monday, but it still hasn’t, and that doesn’t help the situation.

BRND has announced a webinar “Bad Boy Vodka Open House” for Jul. 23, but so far the company hasn’t addressed the market performance of the stock through a press release. Celebrity hype can do a lot for a stock, but it can also turn into a disaster very quickly.