Borislav Tonev

Vitamin Blue Inc (OTC:VTMB) Are Having a Blast

by Borislav Tonev March 18, 2013
3VTMB.pngVitamin Blue Inc (OTC:VTMB, VTMB message board) are one of the most heavily promoted companies in the last couple of months and it truly amazes us how stubborn the people paying for the pumps are. They have not given up just yet, though and we still continue to receive emails of all shapes and sizes telling us about the next piece of exciting news that came out of VTMB's headquarters. So, what is it today?

Well, it's the next in a long line of press-releases telling us how bright the future for VTMB is. In it they tell us that they us they will become a world renowned brand in the future and that within a matter of just five years, their revenues will jump up to $50 million. Really?

VTMB were incorporated back in 1999 they have been publicly traded for a relatively short period of time but we still have some financial reports to read through and we find that during the time between 2009 and 2012, their revenues weren't exactly impressive. We also see that they have been constantly working at a loss. Take a look through the recap of the most important figures in their latest 10-Q covering the third quarter of 2012 and you will see what we mean:

  • cash: $347
  • current assets: $57 thousand
  • current liabilities: $626 thousand
  • quarterly revenue: $38 thousand
  • quarterly net loss: $76 thousand

VTMB and the pumpers touting them are not bothered, though. They all say that there's nothing to worry about and that the next press-release will make shareholders feel a lot better about themselves. Sure enough, the PR's do try to sound as convincing as possible. The latest one, for example, states that they have experienced a 500% increase in the registered sales since their products first appeared on Amazon and eBay. This all sounds extremely good, but what effect will it have on the next financial statement? Will their products be sold at a profit? Does the 500% increase mean that instead of one roof rack, they sold five?

These are all questions that remain unanswered and we reckon that instead of trying to artificially increase the credibility of their company, VTMB should get to work informing their shareholders about these developments and they should be using some concrete numbers instead of forward-looking statements.

We're pretty sure that the shareholders would also like to know what happened to the much-talked-about share buyback program that VTMB recently announced. Not more than a couple of weeks ago they said that they are going to buy some of their common shares back in an attempt to raise the value of their shareholders' investments. We wrote about it back then and we were wondering if the $347 in the bank will be enough to make some significant impact. We're still wondering.

That's the biggest problem that we can see with VTMB at the moment. They can't stop pumping out optimistic announcements and the emails are still flooding the inboxes, but the truth is that we can't find anything that will, in any way, make the people who trusted them feel any better. And some people lost quite a lot of money around VTMB in the recent weeks. To get an understanding of how badly things have really gone, you should consider the fact that when the first email hit the inboxes in in January 6, VTMB's shares were traded at $0.14. As of the time of writing this article, they are now officially in the sub-penny ONCS.pngfield.

Which, coincidentally is what happens to promoted penny stocks more often than not. OncoSec Medical Inc (PINK:ONCS) are a classic case in point. They got pumped by Hot Shot Stocks, who are also part of today's promotion on VTMB. The emails were flying around in November, but as soon as they stopped, the stock drew a line that is quite similar to the one seen on VTMB's chart.

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