Georgi Kamburov

Alkame Holdings, Inc. (OTCBB:ALKM) Destroyed By Pump For The Second Time

by Georgi Kamburov June 12, 2014
ALKMchart.pngAt the start of May a landing page touting the stock of Alkame Holdings, Inc. (OTCBB:ALKM, ALKM message board) was created. Looking at the disclaimer at the bottom of the page revealed that as much as $1.5 million had been set aside as a budget for the promotion. The market reacted almost immediately to the artificial hype and traded volumes along with share price started growing. ALKM broke through the $1 mark but what followed was a total disaster.

On May 13 the stock was devastated after the record number 1.1 million shares got dumped on the market. ALKM slashed 42% of their value and dropped down to 55 cents per share. In the next sessions the slide continued and the company fell even further sliding below $0.45. 

Well, apparently the people behind the promotion had more shares to sell and that is why this week the stock received a re-pump. On June 8 we started receiving email alerts from all sorts of pump newsletters touting ALKM. The amount of touts only increased in the following days culminating in more than 20 emails just for yesterday. This time around the biggest disclosed compensation was $200 000 received by Penny Stock Crew and Stock Publisher, affiliates of Odd Marketing. 

Unfortunately ALKM did a repeat of its horrid performance from May and yesterday plummeted downwards by 22% closing the session at $0.38. This time around though even more shares got dumped - in the six and a half hours of trading 1.5 million shares were sold on the market. The horrible crash didn't worry the pumpers though and late in the evening yesterday they issued a round of emails proclaiming that the stock is surely going to bounce.

Although such a possibility is certainly there we have our doubts about the ability of the company to move in the right direction. ALKM are offering their own kind of alkaline bottled water but for now their operations have been far from successful. Taking just one glance at the latest quarterly report reveals that the company is actually in a dire financial state:
  • $100 thousand cash
  • $730 thousand total current assets
  • $688 thousand total current liabilities
  • $29 thousand revenues
  • $302 thousand net loss
It is important to note that in order to register those $29 thousand in sales the company incurred $31 thousand in expenses, or in other words, the company lost $2000 by selling their products. At the same time even after yesterday's massive crash ALKM still commands a market cap of $26 million. 

ALKMlogo.pngOn June 9 the management of the company decided to do their part in the promotion and issued a rather amusing press article. In it they offered a one-year suppy of their alkaline water to the NBA star LeBron James. During the first game of the NBA finals LeBron James suffered from muscle cramps that according to ALKM's PR could have been prevented if he had used their product. On the day of this announcement ALKM lost 6% of their price.

With so many red flags around them any investment in the company is extremely risky. Before you attempt any trades it is paramount to do your own due diligence in order to avoid suffering any unnecessary losses.

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