Pump Has Reverse Effect for Be Active Holdings, Inc. (OTC:JALA)
After two amazingly good days, Be Active Holdings, Inc. (OTC:JALA) fell on a record selling volume and the promoters had a lot of rationalizing to do. After buying up underpriced JALA for two days, doubling the price to 20 cents, profit taking coincided with a single unpaid promotional mail, following the web-based pump of previous days. March 12th turned around the fates of JALA, and the stock shed a third of its value as nearly 10 million shares were dropped. 
It seems the new ticker, JALA, is the vehicle for Be Active Brands, a range of frozen yogurts already on the market or in the making. However, the entity that files with the OTC market shows very little reserves, and for now does not reflect the success of the company that merged with the public small cap at the beginning of 2013:
- $131 cash a/o September 2012
- $1 million in current liabilities a/o September 2012
- $36 thousand GROSS loss for January-September 2012
- $658 thousand net loss for January-September 2012
Whatever the business of the underlying entity, its effect on stock price in the longer term will be negligible, compared to the effect of pumpers. Although the numbers for Be Active Brands are higher, they also show strange numbers, such as the below-cost selling in 2011 and 2012. This may be explained by payments for slotting fees in supermarkets, although the final result of this investment is way beyond the scope of the next few hot days of a pumped stock.
The promoters sweetened their offer by stating that the company would be coming up with breaking news in the next few days. Whatever the news are, and whatever they promise, it will be just the mention of JALA that will bring more eyeballs to this investment offer, along with some credibility from the frozen deserts business. Unfortunately, JALA in its previous form, SuperLight, Inc. (OTC:SUPU) could not gain either business or investor interest with its plan to sell disposable diapers in Israel and Eastern Europe.
The Be Active brands may also be facing consumer criticism, as it turns out the healthy claims are overrated and the products contain as much processed substances and additives as most junk deserts. The range of frozen yogurts seems only a little better, still packed with sugar, processed starches and corn syrup, the opposite of a health food.
The minor mention by Penny Stock Chaser where excuses are made is just a part of the JALA campaign, one funded with a total of $2.2 million, and it includes a mention in its own domain. The promoters own around 5 million JALA shares, have something of a skin in the game, and may sell any time. Putting the credibility of a frozen yogurt business alongside an aggressive and expensive promotional campaign, it is up to your judgment to decide whether you would trust the hype.
