Georgi Kamburov

Premier Brands, Inc. f/k/a Tracksoft Systems Inc (OTCMKTS:BRND) Runs Higher on Marijuana Hype

by Georgi Kamburov April 24, 2014
8BRNDchart.pngSince the sudden suspension of the stock of Growlife, Inc. (OTCBB:PHOT) two weeks ago the craze around the marijuana industry has been on its lowest with many of the companies suffering multiple days of harsh corrections. Despite the recent negative performance though it appears that the word marijuana is still as powerful and thanks to it Premier Brands (OTCMKTS:BRND, BRND message board) have been able to once again attract the attention of the market. 

On Monday the company announced that they will be expanding their services towards the marijuana industry. This was enough to launch their stock upwards by exactly 100% to a close at $0.002. The positive trend is going strong for now and yesterday BRND climbed another 15% reaching $0.0038 per share. Although they are still deep into the double-zero price ranges you must ask yourself the question - is BRND capable of keeping its gains? Well, we have our doubts. 

First of all if you having being following the pennystock world for the past year you might remember BRND's fiasco that took place last summer. Back then they were constantly talking about the launch of Dennis Rodman's "Bad Boy Vodka". Despite the slew of extremely enthusiastic promises the company failed to show any concrete results causing severe losses for all those who believed them. At the height of the vodka hype BRND saw daily volumes of more than 170 million traded shares while their reported outstanding shares at the time were 52 million.

Now, a year later the situation is exactly the same. BRND bears the pink limited information symbol on their OTCMarkets profile and investors are once again forced to rely only on speculations about the current state of the company. The last report filed by BRND covers the quarter ending May 31, 2013 and it shows the quite a depressing picture: 

• cash: $4 thousand
• current assets: $72 thousand
• current liabilities: $10.5 million
• quarterly revenue: $98 thousand
• net loss: $6.5 million

The report also revealed the quite important fact that as of August 2013 the number of outstanding shares had reached 183 million. Although we have no official information about the issuance of shares since then it is safe to say that the outstanding shares have at least doubled when during Monday's trading investors were able to shift 372 million shares. With no way to 37PMCMchart.pngknow how severe the dilution has been and the fact that BRND have been constantly relying on convertible notes any trade with the stock should be attempted only after careful consideration. 

Another marijuana pennystock that is currently moving at the same price ranges is Primco Management, Inc. (OTCBB:PMCM). Although they crashed by 15% and dropped to $0.0032 at least they have real operations within the industry thanks to the acquisition of the Suzie Q dispensary. Tranzbyte Corp. (OTCMKTS:ERBB) also slashed 15% of their value and are currently sitting at $0.0429.

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