How High Can One World Holdings Inc (OTCMKTS:OWOO) Rise?
One World Holdings Inc (OTCMKTS:OWOO) exploded 19.72% up the charts on Friday, after publishing yet another encouraging press release – but how long will it keep its upward momentum?
There can be little doubt that the impressive jump we witnessed was caused by the announcement that OWOO has “partnered with High Tide Consulting” in order to expand the retail distribution of the company’s Prettie Girls line of products. The announcement certainly inspired investors, but now that the initial splash has passed, said investors would better be on their toes. Why?
Because hype on optimistic press releases seems to be the only thing that the company has going for it – and it usually doesn’t last long. OWOO‘s financials certainly couldn’t keep it afloat, when said hype fails:
- NO CASH!!!
- current assets – $608 thousand
- current liabilities – $25 MILLION
- quarterly revenue – $833 thousand
- quarterly net loss – $8 MILLION
Further, OWOO‘s meager performance is not the only thing that threatens to bring the ticker down. Just one glance the report we mentioned determines that OWOO is positively overburdened with toxic convertible debt. During the first two quarters of 2015 alone, the company issued $853 thousand worth of debentures convertible into common stock at horrific discounts.
And there’s no way to refute the fact that noteholders cashing in on said debt have brought OWOO supporters and believers a ton of grief. Suffice it to say that as of November 2014 the company had less than 50 million shares outstanding. August 2015 saw the number of issued and outstanding nearly hit 370 million. Most of said stock was issued at an average rate of $0.004 per share, and between and in August a further 29 million shares were issued at $0.001 a pop.
And while all of this was going on, the company had been promoted at least 40 times in recent months – and an alarming 35 times between November 10, 2014 and April 2015, and an additional 5 times since then.
So, to sum things up – OWOO seems to be rising on hype alone, its financials look mediocre, it has a ton of highly toxic convertibles AND it has been the target of paid pumps in recent months. Investors would do well to keep these facts in mind when dealing with OWOO stock, as it may well be in for a serious correction sooner than its supporters would like.