Is Kimberly Parry Organics Corp (OTCMKTS:KPOC)’s Climb Over?

For the past three sessions the stock of Kimberly Parry Organics Corp (OTCMKTS:KPOC) has been sitting flat at $0.77 per share. Yesterday the company registered its biggest daily volume since the start of the month but that didn’t help it to close even an inch higher. Is this as far as the ticker can go?

Well, the fact that the momentum behind KPOC seems to be weakening is not the surprising part. It is the fact that the company was actually able to move from 35 cent at the start of August to its current highs that should leave investors bewildered. There is absolutely nothing around KPOC that could justify the company’s current market cap of over $88 million.

It should become crystal clear just how unrealistic such valuations truly are if you open the latest financial report filed by KPOC. It covers the quarter ended February 28 and contains the following numbers:

• ZERO cash
• $252 thousand total current assets
• $2.9 million current liabilities
• $39 thousand quarterly revenues
• $95 thousand quarterly net loss

And if you are wondering exactly why are we using information that is nearly 7 months old the that is because the annual report covering the company’s fiscal year ended May 31 is still missing. The report was supposed to filed by the end of August but KPOC failed to do so. Instead they got a 15-day extension by submitting a notification of late filing stating that the delay was due to “accounting records not ready”. September 15 came, however, and passed by without any trace of the report. As a result KPOC‘s OTCMarkets profile page now carries the OTC Pink No Information sign.

When should investors expect the annual report ? Nobody knows. As we have been warning you for some time now the company has been having serious troubles with its filings. The annual report for the fiscal year ended May 31, 2014, was finally completed in January, this year, five months after the required deadline.

The lack of any current information, the 1-for-8000 reverse split performed last year, and the 152 million shares valued at $0.0001 that were issued as a reduction of a note payable just a couple of months after the split should all be taken into account before committing to any trades involving the ticker.