New Generation Consumer Group Inc. (OTCMKTS:NGCG) Steps Back Again
New Generation Consumer Group Inc. (OTCMKTS:NGCG) had a nice little surge on Friday, but evidently the weekend broke its momentum.
Interestingly enough, the bounce did not coincide with the unveiling of the design of NGCG‘s Hemp Infused beverages and shots, which was supposed to be the main event for the week, but occurred a whole day later.
The fact that the investors were not particularly impressed upon hearing that NGCG “preparing for their pre-production phase” is not really surprising. What is intriguing is that the ticker managed to bounce on Friday at all, given all the perils threatening investor value.
To elaborate – the company’s financials may not look too bad, but there is more to that than it seems at a glance. A bit of digging reveals that on Oct. 2014 NGCG went through with a 1 for 1,000 reverse split.
At that point in time, NGCG ended up with 1.6 million shares outstanding. So far – so good.
However, about a month later, when Dec. 31, 2014 rolled along, that number had already grown to a staggering 56 MILLION.
NGCG‘s OTC Markets profile lists the company as having more than 484 MILLION SHARES outstanding as of February 4.
Investors are advised to punch those dilution numbers into a calculator and see if the results are to their liking. And while doing so, said investors should probably keep in mind that MGCG has a history of paid pumps by none other than the infamous StockMister, and that by all accounts, there are still a ton more discounted shares that could flood the market at any given point in time.
With this in mind – let the buyer beware.