Pumpers Dust Off Cafe Serendipity Holdings (OTCMKTS:CAFS)

When we last wrote about Cafe Serendipity Holdings (OTCMKTS:CAFS), the company was still called Force Fuels Inc and it was still traded under the FOFU ticker symbol. The people at the helm were talking about not one, but two franchise agreements, about numerous stores that were supposed to be opened before the end of the year and about a brand new agreement with mCig Inc (OTCMKTS:MCIG). Where does the company stand right now, seven and a half months later?

Well, there’s a new website, and a quick check will reveal that CAFS is no longer using slightly altered versions of pictures available on other websites (which was the case back in January). Right now, CAFS has its own 3D renderings.

Unfortunately, 3D renderings is just about the only thing CAFS has. The deal with MCIG was called off mere months after it was signed and although they said nothing about terminating the previously announced franchise agreements, there’s nothing to suggest that they have managed to make any money out of them (which they promised would be possible).

The latest financial report covers the period ended April 30 and it looks like this:

  • current assets: $86,520 in cash
  • current liabilities: $3,360,553
  • NO revenues
  • quarterly net loss: $1,061,223

Predictably, the stock performance has been just as appalling as the financial results. The hype around the deal with MCIG pushed the ticker to a high of over $0.08 per share at the end of January, but investors quickly realized that the stock won’t be able to sustain these levels.

A slow and steady slide began which culminated in a 52-week low of just over half a penny on July 17. Then, sporting its new ticker symbol, CAFS managed to claw back some of the lost ground, but just as people started to think that there’s light at the end of the tunnel, the management team dropped the bombshell. On August 12, they announced that the stock is about to go through a 1 for 10 reverse split.

All in all, being a CAFS shareholder has proven to be a rather painful experience. Yet, despite this, there are still people who would like to get a taste of it. Yesterday, those people mopped up about 2 million shares and they pushed the ticker 11% up to a close of $0.10 per share. Why did they do that?

Because some pumpers told them that they should. David Cohen who will apparently receive $12 thousand and Damn Good Penny Picks who will pocket $15 thousand sent out some emails which were enough to draw plenty of attention to the ticker.

As always, it’s up to you to decide whether you should trust the pumpers or not. We reckon, however, that before you reach your decision, you should probably have a look at the promoters’ track records. You might also consider the $275 thousand worth of debt that CAFS picked up between January and April. As you might have guessed already, all of it is convertible and the discount to the market price is 50%.

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