Premier Brands, Inc. (OTC:BRND) Crashes on Wild Promotion
Premier Brands, Inc. (OTC:BRND) was well forgotten in the past few months, but a new promotion caused high interest and chatter, as the ticker swung up and down within a single trading session. In the end, BRND lost more than 42% to $0.016 as most investors managed to shed their holdings and the day ended with net selling. 
This time, the pumper is Damn Good Penny Picks, and the campaign has a budget of $35,000. The next few days will show how BRND will behave, and whether the low price would cause valley buying. The last time a promotion happened, it was around a price of 80 cents, and since then BRND has been trading on and off, sliding down significantly. 
What brought a revival of trade was the mix of a paid pump with the announcement of financial results. Here is what the company can rely on to run its business of producing beverages and consumer packaged goods:
- $29,500 cash
- $4.8 million total current liabilities
- $50,948 total current assets
- $227,000 total revenue
- $1.4 million operating income
The company this year expensed more than $13 million of extraordinary outlays, thus widening its net loss for the year to more than $15.8 million. Also, the current liabilities ballooned from around $340,000 to the current sum as BRND issued new convertible notes, as a part of the managerial efforts to continue operations. This, however, may mean BRND has only a temporary pass, and may be even more burdened by debt and losses, not to mention plagued by defunct pump operations.
We will track BRND in the next few days to see if it manages to achieve a more active trading period. But at one cent, a penny stock still has a long way to fall, to double or triple zeroes. The company is pressured by a troubling past record of debt, but all of this may be irrelevant, since at one cent, stock movements could be erratic and disproportionate and not reflect the underlying business.
The promoter, Damn Good Penny Picks, has a long history of past selections that went bust soon after the mails went silent. This pumper was involved in the promotion for Warrior Girl, Inc. (PINK:WRGL), a ticker that shot up on high hopes at the beginning of April, but slid down to almost no activity when most of the paid mailers went silent. So, it is best to keep in mind that BRND may turn stagnant again, and leave you holding depressed stocks. Plan your investment only according to the losses you could avoid without trouble.
