BreedIT (OTCMKTS:BRDT) Jumps on MMJ Hype
BreedIT (OTCMKTS:BRDT) started in 2010 and, up until a month ago, it went under the name ProGaming Platforms. Its stock was traded under the symbol PPTF and it’s fair to say that things weren’t going quite according to plan.
The ticker was punched to the ground by three paid promotions. The first one took place in April 2012 (shortly after a ten-for-one split) when the price was hovering around $0.28, the second one was carried out in February 2013 when it was at $0.06, and there was a third one three months later when it had already dropped to $0.02.
All in all, a disappointing performance, but, once you take a look at the results of the company’s business operations, you’ll see that it’s not really that much of a surprise. We saw them issue countless press releases about entering multi-million dollar markets throughout the years, but the 10-Q covering the third quarter of 2013 shows us that all the optimism was somewhat unfounded. Here’s a rundown of the most important figures as of September 30:
- cash: $9,136
- current assets: $20 thousand
- current liabilities: $125 thousand
- quarterly revenue: $1,462
- quarterly net loss: $28 thousand
Something had to be done if the company was to survive.
In October, the management team signed an agreement with an Israeli company called BreedIT who have apparently developed a software solution which should optimize the process of breeding for both farmers and researchers. BRDT (who were still known as ProGaming Platforms back then) acquired a controlling interest in the private entity and, two months later, the name was changed and the new ticker was acquired.
The management team also went through an overhaul and they raised some capital through the sale of restricted stock which means that BRDT is now effectively a whole new company. So, how is it doing?
In terms of stock performance, things are looking much better. There are currently no active promotions for the ticker and, although there are some signs of hesitation, it seems to be doing well. Yesterday, BRDT soared by nearly 50% and closed the session at $0.239 while logging a dollar volume of around $480 thousand.
Unfortunately, we should note that the surge seems to be fueled by hype and excitement rather than by actual results. When BRDT‘s new management team announced their business plan, they said that they want to pursue opportunities in various industries, including the medical marijuana sector.
As you probably know, the pot business is one of the hottest topics at the moment and the charts drawn by other cannabis stocks like Plandai Biotechnology Inc (OTCMKTS:PLPL) and Creative Edge Nutrition Inc (OTCMKTS:FITX) show that investors in Pennyland are particularly excited. In actual fact, however, few companies are able to show us conclusive proof that they will be making money out of the marijuana business.
Right now, BRDT doesn’t seem to be among them. The balance sheet should look a bit better after the sale of stock from a few weeks ago and their software solution is probably quite clever. At the end of the day, however, it’s the revenue generation that counts and currently, with no announcements about new contracts, we can’t be sure if a stream of proceeds is indeed coming their way. That’s why, considering the risks carefully and doing a lot of due diligence is absolutely essential.