Is New Generation Consumer Group Inc. (OTCMKTS:NGCG)’s Jump Over?
New Generation Consumer Group Inc. (OTCMKTS:NGCG) managed to climb from $0.0078 all the way up to over $0.043 over the course of the last two weeks, but yesterday saw it drop 18%. Does that mean that its momentum is spent now?
Frankly, it’s hard to see why investors were so impressed with the company to begin with. Its financials could be called meager at the very best:
- cash – $95 thousand
- total assets – $512 thousand
- total liabilities – $205 thousand
- annual sales – $913 thousand
- annual net income – $153 thousand
True enough, the company seems to be making a profit, although admittedly the number isn’t exactly astronomical. However, since that’s just about the only positive thing you can say about NGCG, it’s not really surprising that the ticker is currently headed down.
Its share structure is simply horrendous – as far as it can be ascertained, since its 1 for 1,000 reverse split back in Oct. 2014, NGCG has diluted its stock a staggering 30149%. Yes, that’s more than THIRTY THOUSAND PERCENT DILUTION in a matter of months.
And let’s not forget that the company has been on the receiving end of a paid pump by non other than the notorious StockMister in the not so distant past.
With this in mind, is it really any wonder that NGCG is currently falling as hard as it is? And would it really be all that much of a surprise if its dramatic price movements continue until it the company’s market cap has reached a reasonable amount?
