Punch Media, Inc. (OTC:PNCH) Takes Another Dip
The brief rebounce of Punch Media, Inc. (OTC:PNCH) led to just another dip, as the stock sank more than 38% to $0.0052. The stock was trading around 1 cent, uncertain about the future of its cable TV venture. Lacking a paid promotion, PNCH remains less visible and has not managed a significant spike on investor interest. 
The next year for PNCH should be one of expansion, and increased expenses, just like the great increase in 2012. But with a double-zero stock, any business development would be drowned in sharp, short-term movements. Still, the latest 10-K filing shows that PNCH is preparing to spread a web service and TV programming with the following resources: 
- $1,121 cash
- $2.8 million total assets
- $788,661 current liabilities
- $195,082 annual revenues
- $6.2 million annual net loss
The net loss is mostly due to increased expenses related to TV programming. To build its web business model, the company plans to find further financing of $1.2 million. If everything goes to plan, IC Places, a web venue for restaurant and urban living tips, should offer customer service in the second quarter of 2013.
The company has not been mentioned so far in a paid promotion, although its low price, combined with longer-term potential, could invite paid pumpers. Currently, promoters are busy with other small caps with a web idea in mind, such as Warrior Girl, Inc. (OTC:WRGL) and IceWeb, Inc. (OTC:IWEB). These companies hold enough promise and generate enough forward-looking messages to keep investors interested. Still, they are prone to fluctuations and should be approached with the risk of deep losses in mind.
In a lengthy brochure, PNCH explains other web activities such as advertising campaigns and consultations for indexing with search engines. While there is little wrong with such activities, they tend to be ubiquitous in the past few years. Also the statement that PNCH is the only TV producer “dedicated to promoting and producing products to a mixed racial demographic” rings a bit strange. In any case, PNCH is more likely to behave like an underpriced bid, rather than a company with a promising long-term outlook, so be sure to know you can afford to lose the investment you make, and don’t fall for too much PR hype or paid promotional campaigns.
