Dewmar International BMC, Inc. (OTCMKTS:DEWM) Ends The Week With A Loss
After surging upwards for two straight weeks the stock of Dewmar International BMC, Inc. (OTCMKTS:DEWM) has reached some rather unstable heights. On Friday it dropped for a third session in a row after wiping another 16% of its value and closing at $0.0173. The traded volume for the session was not among the biggest posted by the company and in fact the 264 million shares were lower than the average for DEWM.
All of this may seem alluring but caution should be exercised. DEWM managed to finally get rid of its toxic funders but not before they had converted close to 1.27 billion shares. However the increase of the authorized shares to $4.5 billion and the latest financials reported by the company suggest that further dilution is definitely not out of the question.
Next month the annual report for 2013 should be filed but until that happens we can rely only on the report for the period ending September 30. Back then DEWM had:
- $12 thousand cash
- $107 thousand total assets
- $1.1 million total liabilities
- $51 thousand revenues
- $340 thousand net loss
For the nine months covered by the report revenues had fallen by close to 50% down to $232 000 from $405 000 for the previous year. It appears that the CEO of the company couldn’t have been further from the truth when he projected that 2013 will bring the “largest annual revenues to date”.
That is why it is imperative for traders to do their own due diligence and realize that the majority of pennystocks that operate in the marijuana industry rely on overly optimistic statements about their future in order to fuel the hype around their stocks.
On Friday Hemp, Inc (OTCMKTS:HEMP) continued to lose positions and slid down by close to 10% ending the day at $0.132. Growlife, Inc. (OTCBB:PHOT) also closed in the red albeit by just 1.3% at $0.365 per share.