Pulse Beverage Corp (PINK:PLSB) and HoleInOne Stocks Get a Healthy Workout

Over the last couple of years a number of people have appeared on TV telling us that the lifestyle that we have developed is way to unhealthy. They tell us that the food we eat and the beverages we drink make us look fat and ugly, and that we should instead start a diet consisting of mineral water and muesli (although some argue that mineral water is actually bad for you). Whether you believe all this or not is a different question, but people are increasingly more aware of their physical well-being, and nowadays, most successful products have labels from top to bottom saying that the thing you hold in your hand is 100% natural and that it will make you live 100 more years. Pulse Beverage Corp (PINK:PLSB) are well aware of that and they want to catch the wave.

Like so many other penny stock companies, PLSB have been in the mineral exploration business. They quickly realized that this was not going to make them extremely wealthy so they decided to ditch the gold and silver and concentrate instead on healthy non-carbonated drinks. They do deserve a pat on the back, because unlike most of their counterparts in the small cap market, who seem to be sitting idle for decades on end, PLSB have managed to develop, produce and sell a product in just over a year. Great, isn’t it? Well, things are not quite as rosy as it would first appear, at least not for now.

To kick things off, they have some relatively normal-looking financials. “Sure, they still have a long way to go, but they seem to be doing something about it”, that is what you will probably think when you check out their financials for the first time:

• cash: $235 thousand
• current assets: $1.49 million
• current liabilities: $970 thousand
• revenue for the first three quarters of 2012: $2 million

Scroll down a bit and your enthusiasm will quickly vanish. Yes, the revenue is quite respectable for a small company, but when you add all the expenses you will see that the net loss for the Q1, Q2 and Q3 of 2012 is also quite big – $2 million. We have yet to see them finish a quarter in the black.

Of course, PLSB recognize this and they say that this will all change. They say that they expect to sell over two million cases of their 100% natural lemonade over the coming year. Then again, they said that their other heavily promoted product called Pulse ® (a healthy soft drink) will be hitting the market shelves by the end of December, but it’s still not for sale. Another thing that raises a few eyebrows is the fact that on their website they say that they have invested $10 million into the development of the healthy beverages, but we don’t see any R&D expenses mentioned in their report.

Another red flag is the fact that in order to keep their financial statement looking as good as it does now, they have paid for quite a lot of services with shares, warrants and options instead of cash. This all means that at the moment there are quite a few people waiting in the wings with shares bought at around $0.50 a piece. If the pumpers’ predictions are correct, these people could be in for a lot of easy money.

Since we mentioned promoters, we just couldn’t restrain ourselves from taking a look through HoleInOne Stocks’ performance history. As you can probably imagine, it’s not full of success after success. They hyped Smack Sportswear (OTC:SMAK) back in December, and now, just a month later, SMAK is pretty much down for the count.