High Performance (OTCMKTS:TBEV) Rears Its Head
High Performance (OTCMKTS:TBEV) finally managed to recover some ground yesterday, once more exiting triple zero land.
The ticker had suffered a catastrophic crash that cost it almost a full month’s worth of market cap gains. Long before it started crashing, it was clear for all who have done any due diligence on TBEV that it was becoming hideously overbought for what it was.
And what it was appeared to be just another mediocre OTC Makrets pinksheets company that over-promises and under-delivers on a regular basis. The numbers in its latest financial report certainly classify it as a classic example of OTC Markets mediocrity:
- Total assets – $308 thousand in cash
- Current liabilities – $4.1 million
- No sales
- Quarterly net loss – $283 thousand
These numbers are certainly horrifying, but unfortunately they are not even the biggest red flag that crops up when due diligence on TBEV is done.
The fact that TBEV had to resort to performing a 1 for 10 reverse split at the end of Feburary, 2015 speaks volumes about the company in and of itself. However, that’s not even scratching the surface.
About $2.18 million of the company’s current liabilities as of the filing of its report consisted of convertible notes payable. Of course, things being what they are, large amounts of those notes have already been turned to shares by the time of the writing of this article. Which explains how TBEV‘s number of shares outstanding grew from 212 million to 2.2 BILLION between February and June 2015.
The fact that fully half of the company’s debt ended up being transformed into stock at prices of just $0.0005 is another point worth considering.
Yet in spite of all the red flags, it seems investors are willing to risk jumping on the TBEV hype train. Will that train take them back to the top or will it derail? Only time will tell, but the prospects don’t look good.
