Dewmar International BMC, Inc. (OTCMKTS:DEWM) Ends The Week With A Loss

3DEWMchart.pngAfter surging upwards for two straight weeks the stock of Dewmar International BMC, Inc. (OTCMKTS:DEWM) has reached some rather unstable heights. On Friday it dropped for a third session in a row after wiping another 16% of its value and closing at $0.0173. The traded volume for the session was not among the biggest posted by the company and in fact the 264 million shares were lower than the average for DEWM

Despite the current pessimistic chart pattern DEWM is keeping its recent gains when compared with just three weeks ago when the company was sitting deep into the triple zero price levels. The explosive run that brought them to a new 52-week high of $0.034 was sparked by their decision to join the marijuana industry. 
Since the initial announcement DEWM has been able to keep investors interested by releasing several PR updates about their new marijuana operations. They signed a consultant and co-branding agreement with one of the more established marijuana pennystocks – Hemp, Inc. (OTCMKTS:HEMP). 
Just two days later DEWM managed to enter into a one year exclusive licensing agreement with Chill Drinks, LLC for the distribution of the hemp-based iced tea C+SWISS. With their main product – the LEAN relaxation drink already placed in several Walmart stores optimism among investors soared higher than ever.

All of this may seem alluring but caution should be exercised. DEWM managed to finally get rid of its toxic funders but not before they had converted close to 1.27 billion shares. However the increase of the authorized shares to $4.5 billion and the latest financials reported by the company suggest that further dilution is definitely not out of the question.

Next month the annual report for 2013 should be filed but until that happens we can rely only on the report for the period ending September 30. Back then DEWM had: 

  • $12 thousand cash
  • $107 thousand total assets
  • $1.1 million total liabilities
  • $51 thousand revenues
  • $340 thousand net loss

For the nine months covered by the report revenues had fallen by close to 50% down to $232 000 from $405 000 for the previous year. It appears that the CEO of the company couldn’t have been further from the truth when he projected that 2013 will bring the “largest annual revenues to date”. 

3HEMPchart.pngThat is why it is imperative for traders to do their own due diligence and realize that the majority of pennystocks that operate in the marijuana industry rely on overly optimistic statements about their future in order to fuel the hype around their stocks.

On Friday Hemp, Inc (OTCMKTS:HEMP) continued to lose positions and slid down by close to 10% ending the day at $0.132. Growlife, Inc. (OTCBB:PHOT) also closed in the red albeit by just 1.3% at $0.365 per share.

You may also like...