Profit Status Hypes Kraig Biocraft Laboratories, Inc. (OTC:KBLB) for Upcoming Market Access

In comic books, genetical tinkering with spiders produces superheroes. Kraig Biocraft Laboratories, Inc. (OTC:KBLB) has a simpler aim, producing a super-fabric resistant to wear and tear, and is not shy to advertise the upcoming invention by using paid professional promoters.

In February, Profit Status LLC spent $100,000 to step on the soap box and invite investors. The last mail is from February 15th, and it coincides with a press release from the company stating it entered into preliminary agreement with a textile company. It’s easy to see how KBLB may have some difficulties realizing its business plans to introduce spider-silk enhanced fabrics with somehow limited financial resources: 

• $136,347 cash

• $1.19 million current liabilities

• Zero revenues

• $5.3 million accumulated loss since incorporation

The company, currently valued at $44 million, doubled its price in the past month, jumping significantly with the first emails of the promotional campaign. Its current range was reached after a pump in the summer of 2011 which had a somehow lasting effect, lifting the company up from the 1-cent range and gaining enough attention from investors. This caused KBLB to fall more gradually in the past year, and to invite promoters again when it reached a price valley at 4 cents.

Genetically modifying larger organisms, such as silk worms, to produce greater amounts of spider silk is a legitimate field of research with several applications in the medical industry. However, in the case of KBLB, marketing and application is a far shot, and the stock increases so far were either the direct effects of a pump or the lingering speculative bets afterwards.

The promise of the last emails for KBLB hinges on creating a commercial product: according to the pumpers, this would shoot the stock into the stratosphere. But until the company actually does this, it is best to estimate how much losses you can afford by betting on its stock, especially during an active promotion.

The pumper, Profit Status LLC has a limited history of past promotions, starting in 2013. Its first pump, Pioneer Exploration, Inc. (OTC:PIEX) is behaving predictably, going up 12 times, but sliding from 25 to 8 cents in just a week.