Hangover Joe’s Holding Corp (OTCMKTS:HJOE) has been crashing consistently in recent days. The stock had registered its last increase on the news of its Git-R-Done energy shot. Mostly the lack of news from the company, since then, is to blame for the stock’s consistent crash. However, there are some deep seated reasons as well, behind the company losing its investors.
HJOE, at the end of May, had issued a press release stating that the company received an order and upfront payment from a company known as Cure Korea. The stated company seems to be purely fictional, since there is no website or an official logo for Cure Korea. Even HJOE’s PR included very little details about the company. Another major problem highlighted in the PR was the association of a twitter account “the hangover shot” with the company. The account has been known fire threats at a renowned penny stock analyst, Janice Shell. Even though most of these posts have been removed there are some that use obscene names for Ms. Shell.
Ms. Shell’s investigations have previously led to the SEC suspending the activities of some of the OTC firms. Investors are therefore rightfully moving away from the crashing stock, since they feel that there is definitely something wrong. Apart from the moral issues, HJOE does not boast a very healthy balance sheet. There is very little cash in hand for the company, an ever increasing short-term debt and very minimal revenues to date.
As is mostly the case with OTC companies, the poor balance is leading towards severe dilution and the company has 6-times the amount of outstanding shares, than it had 7-months ago. Additionally, the company has not been consistent in filing its financial reports and the last filing was made for the period ending September 2014. Investors find it hard to keep up with company finances, resulting in further declines.
Hangover Joe’s Holding Corp (OTCMKTS:HJOE) lost 19.44% of its share value, after trading 47.56 million shares in the current trading session. The stock has a market cap of $960,126.