Dragni Dragnev

Baristas Coffee Co (OTCMKTS:BCCI) Turbulent After Up-listing To OTCQB

by Dragni Dragnev February 16, 2015

Baristas Coffee Co (OTCMKTS:BCCI, BCCI message board) had a good run after the announcement that it received high praise by an online coffee promotion platform around the beginning of February. Later, the ticker literally exploded up the charts when it became clear that the company had up-listed to the OTCQB, but unfortunately, what goes up on hype must come down. And BCCI did eventually crash – only to rise again in the last two sessions, this time pushed up by PR.

A seasoned investors knows to be wary of ticker movement that is not based on the company in question's performance. Although it may be argued that being voted "Best Coffee Company in the USA" by iBikinicoffee.com is an achievement in and of itself, it doesn't really warrant a BCCI share price increase from $0.03 to $0.05. The very same goes for the QB up-listing.

Still, at the end of the day, neither the award by an online promotional platform or the fact that the company is now reporting with the SEC has all that much of an immediate impact on BCCI's financial standing. And said financial standing, as described in the company's latest balance sheets, is unimpressive to say the least:

  • cash - $17 thousand
  • current assets - $55 thousand
  • current liabilities - $1.3 million
  • quarterly revenues - $296 thousand
  • quarterly net loss - $173 thousand

To sum all this up – BCCI is currently volatile from all the media exposure it has drawn recently, and that allows the ticker to explode up the charts. Unfortunately, the company's fundamentals are not all that impressive, which bodes ill for its market cap once the hype that is currently pushing it up dissipates.

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