Profit Status Unleashes a Second Promo Round For Kraig Biocraft Laboratories Inc (PINK:KBLB)
Twelve days ago, we got a hefty promotional email from Profit Status LLC touting the stock of Kraig Biocraft Laboratories Inc (PINK:KBLB). While the former got paid $100 thousand for making the effort, today KBLB is quoted at $0.074, or right where it belonged prior to the pump. The evident lack of progress has now triggered a new round of emails in favour of the stock worth $80 thousand. This time, the company is hailed as ‘the only game in town’ when it comes to its novel spider silk technology. To what extent do you take all that ranting and raving for what it is?
If we take a look at KBLB‘s most recent press releases and video presentations (trust us, there are plenty of them), we can’t help but feel genuinely impressed with the course of action undertaken by CEO Kim Thompson & Co. On a second glance, however, the picture is not as rosy as the touting emails paint it. Here are the main points of concern.
First, the company has been around for seven years now and it still has not made a single dime of revenue. By contrast, losses have been mounting at a steady pace and have so far cracked the $8 million mark on aggregate. How many more years will shareholders have to wait before the cash drought is over? We do not know but maybe Mr. Thompson does.
Second, KBLB‘s articles of incorporation stipulate that the company’s authorized stock is by no means limited to a particular number. As a result, there are no hurdles managers have to get over whenever they decide to issue new stock, which in turn means that current shareholders could potentially fall victims to heavy dilution whenever the company’s management deems it necessary. Unless KBLB solves its huge shortage of cash soon, taking dilutive actions will most probably become the managers’ second nature.
To sum it up, KBLB got a promotional injection on Feb. 14 to no avail, then got another one yesterday, which is likely to fail in boosting the price of KBLB shares again. The company simply does not seem to be in a good financial shape, which is why any attempts to artificially inflate KBLB‘s market value are more or less doomed to failure. For the record, Profit Status LLC was also responsible for Pioneer Exploration Inc (PINK:PIEX) in mid-January. We all know what happened with PIEX‘s market price in the aftermath.
