Hangover Joe’s Holding Corporation (OTCMKTS:HJOE)’s Descent Turns Ugly

Hangover Joe’s Holding Corporation (OTCMKTS:HJOE) lost another 10% of its market value yesterday, on an even more meager dollar volume than it registered on Friday – and judging by today’s red opening, the session to follow may end up even leaving it even worse for wear.

The fact that just 45 million shares changed hands in yesterday’s session is symptomatic of HJOE‘s current position. Evidently, the company’s shareholder base isn’t as loyal as MicroCapDaily makes it out to be, because the ticker is already headed down, hard.

But that is understandable. As time passes, hype dissipates and more and more investors come to their senses and realize that HJOE has quite a few red flags pulling it down.

As MicroCapDaily put it at the end of its otherwise optimistic report “HJOE has little cash on hand and minimal revenues to date as well as significant rising short term debt”. Suffice it to say that this would be an excellent way to start describing HJOE‘s current situation, but is hardly sufficient in and of itself. Why?

First off, it fails to mention the fact that HJOE has been negligent in its obligation to inform investors and the SEC of its current financial status. Put simply – it is late in filing its 10-Q for the first quarter of 2015, which has earned it the “Limited Information” label that currently marks its OTC Markets profile.

And it’s not like said report is not important – it was to show investors what the company had achieved in the three months that followed its unimpressive 10-Q:

  • Cash – $48 thousand
  • Current Liabilities – $2.8 million
  • Quarterly Revenues – $48 thousand
  • Quarterly net Loss – $592 thousand

But perhaps even more importantly, the new 10-Q was supposed to throw some much needed light on HJOE‘s share structure. Suffice it to say that HJOE‘s common stock has ballooned form 208 million as of Oct. 06, 2014 to approximately 1.7 billion less than two months ago. The report was supposed to inform investors as to how much more dilution has poisoned investor value in the meantime.

In summary, HJOE seems to have lost its volatility, which was probably the only thing the company had going for it.

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