Surf’s Up for Vitamin Blue Inc (OTC:VTMB) and Jet-Life Penny Stocks

When we received Jet-Life Penny Stocks’ email and saw the name of Vitamin Blue Inc (OTC:VTMB), we thought that they are one of the medical companies offering products that are supposed to make us feel and look good and, health-conscious folk that we are here at HotStocked, we were thrilled to look into it. We found out, however, that VTMB are actually in the business of manufacturing and selling clothing and accessories for surfing. Although it might not be our favorite sport, we do understand that there are thousands of dudes and dudesses out there that might need some fresh and cool products. The question is: are VTMB good enough to please the rather pretentious surfing community?

We headed directly to their website to see what we could find and, we were quite disappointed when we saw that the Shop section contains a total of 16 products in barely three categories. That’s not very much by any standards, especially when you have in mind that VTMB have been on the market since 2000, or so they claim. By comparison, established names in the industry like Quicksilver have more than 200 items in the boardshorts section alone. But let’s not be too harsh on VTMB – after all, they are just a small company with a rather misleading name. It was time to look at the financial statement.

Things are not too encouraging there, either. In their favor, we have to note that they have been registering some sales over the last months, however, that alone is far from enough. The figures speak for themselves:

• cash: $347
• total assets: $57 thousand, (most of them in prepaid expenses)
• current liabilities: $626 thousand
• revenue for the last nine months: $99 thousand
• net loss for the same period: $182 thousand

To put things into perspective, the gross profit from the VTMB‘s sales for period between December 2011 and September 2012, without taking into consideration the operating expenses, is $42 thousand. At the same time the annual salary of the company’s Chief Executive Officer is $50 thousand. This means that money is not only short, but it’s virtually non-existent.

Of course, like so many other small-cap companies, VTMB are trying to dig themselves out by borrowing money and, after all, the financing has to come from somewhere. The thing is, most of their loans are convertible, which means that over the past few months, more than 20 million shares were issued to cover for debts and services. That’s quite a lot of dilution for the shareholders with much more yet to come considering the favorable conditions of some warrants and notes and the lack of money.

When paid promotions are at play, things are always risky. When the promoter has a bad history – even more so. Back in December, Jet-Life Penny Stocks promoted Gold Dynamics Corp. (OTC:GLDN) and they said that the gains could reach 1000%, however, now, about a month later, GLDN‘s price has dropped significantly and there’s little to suggest that they will be on the upward trend any time soon.

We’re sure that the people at Vitamin Blue really do want to achieve something. The problem is that they are still laying the foundations and the odds of them failing are far greater than those of success. One thing is for sure – Jet-Life Penny Stocks’ promotions aren’t going to help them.