Pulse Beverage Corp. (OTCMKTS:PLSB) Travels Back in Time

The stock of Pulse Beverage Corp. (OTCMKTS:PLSB) dropped by another 8% yesterday, after closing red the previous four sessions. The price of PLSB stock has gone back near its January levels, before another round of pumps sent it to new highs.

The company has been releasing a lot of optimistic press announcements that managed to keep the price up for some time. Around mid-May when PLSB‘s quarterly report came out, the prices faltered, briefly recovered, then careened down the chart. For months on end investors only got the chance to read an incessant stream of PR related to the company growing its network of distributors.

Here is what the company published in its quarterly filing for the period ended March 2013:

• $3.8 million in cash
• $903 thousand in current liabilities
• $788 thousand in quarterly revenue
• $1 million in quarterly net loss

What may immediately grab one’s attention is the sudden increase of cash the company has, compared to the end of 2012. As of last December PLSB had just $744 thousand in cash. The fivefold increase can be traced to what is listed as “proceeds from the sale of common stock”. PLSB had 36 million outstanding shares of common stock as of mid-November 2012. Those shares have grown to 51 million, equaling dilution of about 30% in roughly three months’ time.

There’s still little information on the launch of the company’s flagship Pulse beverage, with press releases coming out only related to the trademarked Cabana lemonade. The latest quarterly filing briefly mentions that the company started introducing the Pulse drink into its distribution system this April. The expected term to reach 1 million cases of annualized sales has now been pushed into 2014. The same 1 million case deadline was originally set by the company for March 2013, then it was pushed to June 2013, and then to its current target in 2014.

Other stocks that fell in yesterday’s session include Fuse Science, Inc. (OTCMKTS:DROP) who dipped 15% on heavy share volume. Creative Edge Nutrition, Inc. (OTCMKTS:FITX) took a nosedive after a period of relative calm, crashing 43% yesterday.

Whether PLSB will be able to contain the red streak it got into remains to be seen. The company now has a sizable amount of cash on hand, gathered from selling stock. The next quarter may be the make or break period for PLSB, who will really need to put the money to good use if they intend to make it before disillusioned and diluted investors give up and abandon ship.