Obscene Jeans, Inc. (OTC:OBJE) Continues to Stun
It’s rare to meet a penny stock company that’s so in-your-face even starting with its name, Obscene Jeans, Inc. (OTC:OBJE). Formerly a self-described fashion power house, OBJE again tries to be in fashion, this time by writing apps. We cannot understand why OBJE cares so much to compete in flooded markets, as previously it tried to create the world’s most in-demand pair of jeans, in a market where jeans are ubiquitous. Needless to say, the previous venture failed, and led to a change of business.
OBJE is back on record volumes, probably triggered by a press release, and in for another round of shameless self-promotion. Let’s see if it is any better now that it has decided on an electronic product. Last time we checked, the financial reserves of OBJE were modest. Now, it has:
- $3731 cash
- $3731 total assets
- $512 thousand total liabilities
- $172 thousand net loss
- no revenues since inception
It turns out the Obscene Jeans were just a fantasy, and not a single pair was sold. Now, OBJE promises to make a killing with an app for which it has sent an application to be featured on the Apple store. Note that this does not mean it would be featured- it’s just an application. The company touts its access to a billion-dollars market, although so far there has not been any access.
It’s strange that OBJE jumped 86% to $1.23 without any new promotional efforts, but it seems the buying momentum has carried for a while. Despite the jump, this price is still extremely low. OBJE is trading with only 7 million shares outstanding, after decreasing shares at a 40 for 1 reverse split.
Priced relatively high, OBJE is ripe for a reversal, although with its habit of shameless self-promotion, it might keep the hype for a while. It might even be fun reading the self-styled news article, hyping the qualities of the amazing jeans that never materialized.
Just as amazing are the promises for the new game Phantasmic, which was submitted to Apple store, and may see an Android mobile operating system release. OBJE claims it may repeat the success of Zynga, Inc., the online gaming leader, by offering a game even more engaging. Unfortunately, the developer’s website reveals a somehow derivative and uninspired virtual world, a far cry from Zynga’s sizzling sensations.
Whether this would happen is a shot in the dark, but given the high promises and past history of failed business models, we may conclude that OBJE demands a very good risk-assessment, and could potentially cost your whole investment.