HIGH PERFORMANCE (OTCMKTS:TBEV) stock declined more than 33% on Wednesday, as it started to lose its strong momentum. The stock price remained volatile throughout the trading session, moving nervously between $0.0020 and $0.0015, finally to close at $0.00120. Also, the decline was supported by massive share volume of 194.22 million compared to monthly average share volume of 46.13 million. This sharp drop in stock price is the result of dissipation of hype surrounding the stock.

The buzz

In the first week of this month, the stock price of High Performance managed to move from $0.0003 to all the way to Tuesday’s close of nearly $0.002 per share. This is the highest close of TBEV in past five months. The reason behind all this excitement is the press release issued on August 6 which stated that the company is set to commence the production of its brand new sports drink. Along with the promising PR, the social media and message boards are flooded with positive posts related to the company’s performance.

The performance

Investors should not blindly invest in High Performance stock just on the basis of promising PR. They should take some time to read the financial numbers of last quarter. As per the last report, the company reported cash of $308,010 and current liabilities of over $4 million. The operating loss in the quarter was $283,485 and revenue came at $0. Also, as per the report the new sports beverages were expected to launch in the market before beginning of July, which clearly didn’t materialized.

The debt

All these problems appear small considering in front of the major problem of toxic debt. At the end of April, the company reported $2.3 million in outstanding convertible debt. A large part of the convertible debt can be converted into shares for as low as $0.0001 per share.