Soul and Vibe Interactive Inc (OTCBB:SOUL) Rushes Up The Chart
The stock of Soul and Vibe Interactive Inc (OTCBB:SOUL) is not having a great year so far. In fact, one could say that the chart performance of the company has been nothing short of disastrous. Starting from early March for seven months the ticker crashed lower and lower falling into the triple zero territories on August 24.
On the very next day, August 25, SOUL implemented a 1-for-40 reverse split that bumped their share price up significantly. Well, less than two months later the stock had once more wiped a significant portion of its value and on October 13 logged a low of $0.0039 and a close at $0.006. Not an encouraging sight but things might finally be turning for the better. For the past six sessions SOUL has been rapidly reclaiming some of the ground they lost making huge jumps up the chart. Yesterday they added another 60% to their value and returned to $0.032 per share. Investors are also starting to return to the stock with the daily volume for the session reaching over 4.3 million shares compared to the monthly average of 401 thousand shares.
Investors might want to not get too excited though as the impressive uptrend doesn’t seem to be supported by anything. The latest PR issued by SOUL came on October 13 and on that day the company registered a loss of 40%. There are no new official filings either. Not to mention that the financial state of the company doesn’t inspire much confidence – as of June 30 SOUL had:
• $48,332 cash
• $85,472 total current assets
• $1.6 million total current liabilities
• $1,541 quarterly revenues
• $734 thousand net loss
That is right, for the second quarter of the year Soul and Vibe were able to generate a little over $1,500 in revenues. At the same time the cost of sales for the period stood at nearly $30 thousand so for the period SOUL incurred a gross loss of over $28 thousand. The limited cash reserves could also mean that the company will have to find new outside sources of funds. In the past SOUL has quite often raised capital through the sale of convertible notes and it remains to be seen if they will continue to do so.
Actually, we don’t know if the company has issued any fresh shares recently. As of August 11 SOUL had 136 million outstanding shares but the reverse split performed 13 days later should have left them with around 3.4 million. A Schedule 13G filed on September 28 stated that BLACK FOREST CAPITAL, LLC owned 562 thousand shares representing 10% of the then outstanding shares. This means that as of September 28 SOUL had O/S of 5.62 million shares. Earlier, however, we said that yesterday more than 4.3 million shares got traded signaling that by now the outstanding shares may have grown even more.
Soul and Vibe Interactive are trying to move forward with their business and at the end of September they launched their SirVival game on the App Store and Google Play. Earlier this month the company also launched its interactive storybook “Johnny Tractor and Friends: County Fair” on the the Google Play and Amazon marketplaces. Will this be enough to offset the numerous red flags? Ultimately, it is up to you to decide.
