Premier Brands, Inc. f/k/a Tracksoft Systems Inc. (OTCMKTS:BRND) Hurtles Towards the Bottom
For the first months of the year all a company needed to do is utter the word “marijuana” in a press release and their stock would surge almost instantaneously. Now the rampant optimism has largely died out and reality seems to be settling in causing a general slump to the whole marijuana industry.
That is way it was quite surprising that the stock of Premier Brands, Inc. (OTCMKTS:BRND) shot upwards for three straight sessions in a row this week after the company announced expansion towards the marijuana sector on Monday. Starting from just $0.0014 BRND pushed as high as $0.0048 during Wednesday’s trading but such heights proved to be unsustainable and yesterday they suffered a devastating crash. BRND wiped more than 36% of their price and barely stopped at $0.0024 at the end of the day. Throughout the session around 173 million shares got dumped on the market.
At such extremely low price ranges the stock is capable of sudden swings in either direction and a new PR could be enough to cause a bounce despite the myriad of red flags around the company.
Let’s start with the fact that BRND have been quite negligent towards informing investors about their financial results. The fiscal year of the company ends at August 31 but in December the company submitted a notification of late filing that gave them a 15-day extension. More than four months later there is still no sign of the annual report leaving investors no choice but to rely on information nearly a year old. At the end of May 31, 2013 BRND had:
• cash: $4 thousand
• current assets: $72 thousand
• current liabilities: $10.5 million
• quarterly revenue: $98 thousand
• net loss: $6.5 million
• current assets: $72 thousand
• current liabilities: $10.5 million
• quarterly revenue: $98 thousand
• net loss: $6.5 million
Although such numbers are depressing enough even on their own the situation gets even worse. Back then the number of outstanding shares was 183 million but now they have more than likely doubled, and that’s the best case, when on Monday more than 347 million shares changed hands.
If you are new to the world of pennystocks you might want to look at last year’s disaster that was the launch of Dennis Rodman’s “Bad Boy Vodka”. Despite issuing numerous PRs about events featuring the new brand of vodka BRND couldn’t deliver on any of its promises and as a result their stock has lost nearly 90% of its value since then.
The company might be able to prolong its appeal as a new entrant into the marijuana industry but without significant progress in both their financial disclosures and actual operations they are an extremely risky bet. Yesterday also put an end to Medical Marijuana, Inc. (OTCMKTS:MJNA)’s tentative recovery. The stock plummeted down by more than 12% and returned to 20 cents per share on 8 million traded shares, nearly doubling the volumer from the previous session.
