Kimberley Parry Organics Corp (OTCMKTS:KPOC) Drops Down
For over two and a half months the stock of Kimberley Parry Organics Corp (OTCMKTS:KPOC) has been moving up the chart climbing from around 40 cents per share to a high of $0.94. Yesterday, however, despite making a new announcement early in the morning the ticker suffered a sizable correction closing at $0.86 for a loss of 8.5%. It seems that investors weren’t exactly impressed by the fact that KPOC recently engaged Jeneration PR, a public relations and social media marketing firm.
Not to mention that yesterday KPOC also submitted their quarterly report for the period ended August 31. The report was supposed to be completed by October 15 but now that we finally have it let’s see what the company has managed to achieve:
• $37,549 cash
• $314,615 total current assets
• $1.57 million total current liabilities
• $116,323 revenues
• $60,804 net loss
Compared to what the company had at the end of May the balance sheet definitely shows some improvements. From ZERO cash now KPOC have $38 thousand while in just a quarter they have generated nearly half of the revenues for the entire previous fiscal year. It is quite obvious however that KPOC are still incurring losses and that their financials simply cannot justify the market cap of the company that even after yesterday’s loss stands at more than $98 million.
Investors have a lot more to worry about though. According to the report at the end of August there were several outstanding convertible notes the terms of which were not disclosed. Earlier this year, on March 31, KPOC did issue 10,820,000 million shares to repay a note in the amount of $10,820 plus accrued interest. Although this means that each share was priced at $0.001 the report states that the shares were recorded at $0.05. Even at that price though the people who received these shares could reap millions in profits if they unleash them on the open market at the current price of the stock.
KPOC are still trading at unrealistic prices and if the stock starts correcting the drop could be extremely painful. If you are determined to trade the ticker take into account the various risks before committing to anything.