Georgi Kamburov

Premier Brands, Inc. (OTCMKTS:BRND) Announce New Marijuana Brand, The Stock Refuses to Move

by Georgi Kamburov May 28, 2014
3BRNDchart.pngIt appears that the hype around the marijuana industry is officially dead. Yesterday Premier Brands, Inc. (OTCMKTS:BRND, BRND message board) revealed a whole new line of medical marijuana products that are supposed to hit the shelves at some point during the summer but their stock couldn't care less and it closed at $0.001, the exact same price it had at the end of the previous session. 

The lack of price movement doesn't mean that the announcement didn't attract the attention of the market. On the contrary, during yesterday's trading the absolute record number of 392 million shares got exchanged. Just for the record, on Friday the traded volume was less than 8 million shares. 

The rather disappointing performance shouldn't come as a surprise when you take a more detailed look at the company. Even without the recent investor alert issued by the Securities and Exchange Commission in which they warn investors about the various dangers surrounding the marijuana pennystock companies BRND would still be among the riskiest choices. 

Their past history and more specifically last year's fiasco that was the launch of Dennis Rodman's "Bad Boy Vodka" is still fresh in the memory of many traders. We followed the whole disaster as it progressed and you can read our articles from back then. Still, many may say that this was nearly a year ago and it has no connection with the current business of the company. Well, that may be so but what exactly is the current business of BRND?

They talk about releasing medical marijuana products but we have no idea if the company has enough funds to do so. BRND have been marked with the Pink Limited Information sign on their OTCMarkets profile which usually means that the company has failed to submit its latest financial report. In the case of BRND though things are much more serious. They have not filed a single report since the quarterly covering the period ending May 31, 2013! This means that investors have to rely on information that will soon be exactly a year old. Not to mention that the numbers in the report are far from encouraging: 

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

We may not have a way to acquire a more up-to-date data but at least we can safely say that the dilution that has been taking place in the past year has been massive. As of August 5, 2013 BRND had 183 million outstanding shares while as we already said yesterday's volume was close to 400 million. 

2TRTCchart.pngUntil BRND finally decide to reveal what the current state of the company is it may be for the best to stay away from their stock.

In the first session after the long weekend some of the marijuana companies managed to log in considerable gains. Terra Tech Corp. (OTCMKTS:TRTC) surged by more than 32% and at the end of the day found themselves at $0.47. At the same time Triton Distribution Systems Inc shot up by close to 40% reaching $0.032 on their first day of trading under the new name and ticker Green Cures Inc. (OTCMKTS:GRCU).

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