New Report Gives Jammin Java Corp (OTCMKTS:JAMN) A Boost

Back in June 2011 there was an absolutely huge promotional campaign for Jammin Java Corp (OTCMKTS:JAMN). A number of newsletters were involved and the price hit its all time high of around $6.50 per share. Then, for some reason the emails stopped. Shortly after that, a new 10-Q was filed and it wasn’t what people wanted to see. It was so horrendous in fact, that the ticker took a massive plunge destroying a huge amount of investments as well as the hopes and dreams of many traders. That was two years ago, but what about now?

Well, things are quite a lot different today. For one, JAMN are not featured in any sort of promotions and they have managed to stay away from the pumpers for quite some time. Another difference is that the people who run the company seem to be different. Shortly after the catastrophic fall from June 2011, JAMN‘s CEO, Mr. Shane Whittle (a known stock promoter) resigned from his position. Yet, right now, two years later, we are seeing a lot of movement around the ticker once again and during the last two weeks they have managed to gain around 97%. So why is that?

Well, we can see that the PR department has been pretty busy recently and there’s been a steady stream of optimistic announcements coming from JAMN‘s HQ. As we wrote in last week’s article, however, the short-term performance of the stock was about to be decided by the figures in the quarterly report covering the period before April 30. Unlike the 2011 affair, investors seem to be happy with what they see right now and, truth be told, there is a reason for their optimism. Here are the most important figures as found in the 10-Q:

• cash: $63 thousand
• current assets: $1 million
• current liabilities: $774 thousand
• quarterly revenue: $817 thousand
• quarterly net loss: $418 thousand

The report came out after hours on Friday and the effect was definitely felt yesterday when the ticker started the session strong closing it at $0.61 or around 20% above last week’s value meaning that, along with Italk Inc (OTCBB:TALK) and Biozoom Inc (OTCBB:BIZM), JAMN recorded one of the highest gains in terms of percentage and dollar volume.

Investor confidence is supposed to be further boosted by SmallCapVoice’s (SCV) interview with JAMN‘s CEO, Mr. Brent Toevs that went online about an hour before yesterday’s trading session. Of course, SCV were compensated for the interview, but having listened through it carefully, we must say that it’s rather different from what we’re used to hearing in paid coverages of small cap companies.

The highlight of the conversation is, of course, the new 10-Q. Mr. Toevs talks at length about the numbers found in it and he never fails to mention that they do look far better than the ones from previous periods which, of course, is true. He also says that sales of the current quarter have been even more impressive and he mentions a few things about their plans for future development and new products.

We’ve listened through quite a lot of similar interviews and we must point out that these things are all pretty much standard when it comes to such coverages. What surprised us somewhat is the fact that the host also asked Mr. Toevs about the insider transactions that we see in the form 4’s among JAMN‘s SEC filings. The CEO responded that all the shares that were sold by insiders come from the stock-based compensation and, naturally enough, he promised all of us that the people running the company strongly believe in it and its stock.

Then SCV asked Mr. Toevs about the financing that they’ve been receiving from Ironridge Global IV, Ltd, and the host even asked him if it’s not potentially dilutive. Mr. Toevs, explained that the funding is not going to crush the shareholders’ investments and he talked at length about how hard it is to find financing nowadays. While it is true that finding money for your start-up venture is probably not the easiest thing in the world, JAMN did issue 12 million common shares to Ironridge within a matter of two months. If JAMN are not able to start making actual profits really soon, this stock could put pressure on the price, and if Ironridge decide to get rid of it, the consequences could be even worse.

Of course, we can’t be sure if that will happen or not, but if it does, it will be a huge blow for JAMN‘s credibility (which is still rattled by the promotional fiasco of 2011). We reckon that this is something worth keeping in mind before making your investment decision.