Kraig Biocraft Laboratories, Inc. (OTC:KBLB) Shoots Up Ahead of Annual Meeting

The expectations for the upcoming stockholder meeting may be boosting Kraig Biocraft Laboratories, Inc. (OTC:KBLB), as the ticker added 25% to reach 13 cents. The chart marked a rising trend on four days of buying,aiming to double the price in a month, boosted by a series of press releases. KBLB was last promoted in an email on March 8th, but the PR messages helped preserve and improve the positions. KBLB0403.png

The run for KBLB may be soured a bit by the lack of updated financial results, as on April 1st the company presented a notice of late filing with the SEC. The company’s business is heavy in development costs and KBLB has little real revenues, so its fundamental data show red flags:PIEX0403.png

  • $136,347 cash
  • $161,043 total assets
  • $1.091 million total liabilities
  • Zero revenues
  • $292,515 net loss

Currently KBLB is still in the laboratory stages of its product creation, aiming to produce a commercially viable material containing genetically modified spider silk. The company announced it already produced its first thread from genetically spliced silk worms that produce a hybrid thread, trademarked as Monster Silk. While this is intriguing science, the stock movements may be way ahead of the real business achievements, especially if aided by online noise and a recent emailed promotion.

The KBLB promise was touted in a campaign worth $80,000, which in the past weeks lifted volumes and prices disproportionately, lifting the ticker above 10 cents for the first time in more than a year. If the current trend keeps, the stock may revisit its 26-cents absolute highs. We will also wait and see if other pumpers will take up this proposal, aside from the specially dedicated Newsletter that landed our database.

Before the Newsletter, KBLB was mentioned by Profit Status, another private entity with a short list of emails in our database. The only other pick for this promoter is Pioneer Exploration, Inc. (OTC:PIEX). After the promotion fizzled out, the stock shed more than 70% of its value and went on to trade on miniature volumes, achieving choppy daily price changes. While the slope for KBLB may be more gradual, it is good to be aware of potential corrections and disproportionate movements when a company relies too much on paid hype and glowing press releases.

You may also like...