Alkame Holdings, Inc. (OTCMKTS:ALKM) Falls Deeper
Back in May the stock of Alkame Holdings, Inc. (OTCMKTS:ALKM) became the target of $1.5 million pump campaign. The outfit that carried the promotion was Wall Street Giants and the artificial hype they created pushed the stock to a high of $1.08. Soon after that though the stock crashed so hard that it dropped from around a dollar to a little more than 50 cents in a single day. In June and July it continued to wipe more and more of its value on lesser and lesser daily volumes.
With the effects of that pump still influencing the stock it was rather surprising that in September ALKM received another multy-million promotion. This time they were picked by StockTips who disclosed that a total production budget of $4.6 million had been set aside for the campaign. The huge sum of money and the daily email alerts were able to attract the attention of the market and soon ALKM hit 50 cents per share. Unfortunately, all those who believed the baseless claims of the pumper were left scrambling to cover their losses when the stock once more plunged for the bottom. The emails stopped and suddenly the stock was left to move on its own.
Out of the last 8 sessions only 1 has ended in the green. The negative trend has not only been rather strong but it is picking up even more speed – yesterday ALKM crashed by 15% and closed at $0.076, just a nudge above the intraday low of $0.75.
As we have said on numerous occasion, if it weren’t for the pumps the company would place among the more stable ventures in the world of pennystocks. They have continuously expanded the distribution of their alkaline water and it could lead to an improved balance sheet. The latest quarterly report covered the period ending June 30 and it contained the following results:
• $42 thousand cash
• $683 thousand total current assets
• $836 thousand total current liabilities
• $69 thousand revenues
• $303 thousand net loss
In August ALKM improved their cash position by entering into a securities purchase agreement with KBM Worldwide, Inc. for $68 thousand. The problem is that after 180 days KBM could convert that amount into common shares at a significant discount to the market price.
At the end of October the company acquired High Country Shrimp Company for 100 thousand common shares but the deal failed to impact the performance of the stock. ALKM should submit its next quarterly report by tomorrow and if it shows more promising numbers it could help them regain some of the lost value. Still, the negative effects of two major pumps in such a short amount of time should not be underestimated. Do your own due diligence before committing to any trades involving the stock.
