Borislav Tonev

Totally Hemp Crazy (OTCMKTS:THCZ) Stumbles Again

by Borislav Tonev September 29, 2015

As you probably know, Totally Hemp Crazy (OTCMKTS:THCZ, THCZ message board)'s shareholder meeting took place on September 26. Many people were eagerly awaiting the event and with it approaching, they were getting more and more hyped up. The effects on the stock were pretty visible last week when after three consecutive green days, the ticker reached a close of over $0.10 per share for the first time in over a month.

People were really excited and if yesterday's press release is anything to go by, their enthusiasm has been transferred over to the members of THCZ's management team. The company officers outlined the topics that have been discussed during the meeting, thanked all the people who attended the event, and said that they can't wait to show everybody what THCZ is really capable of.

Curiously enough, however, instead of giving the ticker another boost, yesterday's press release actually dragged it down. THCZ lost nearly 17% of its market cap and it dropped below the psychological $0.10 barrier once again. Early trading today doesn't suggest that it's about to recover quickly. About ten minutes into the session, it's sitting at $0.086 per share (about 3% in the red).

Of course, there's still a long way to go until the closing bell, so everything is possible. There's no getting away from the fact, however, that performance-wise, THCZ isn't really the most appealing stock out there. The $0.30 per share highs reached in April, for example, are now nothing more than a distant memory and this is despite the latest financial report which looks like this:

  • cash: $96 thousand
  • current assets: $1 million
  • current liabilities: $1.5 million
  • quarterly revenues: $730 thousand
  • quarterly net loss: $39 thousand

By OTC standards, the figures don't look too bad, but when you consider the fact that THCZ's products hit the shelves mere months before the statement came out, they appear even more impressive. The recent news tells us that the sales are absolutely booming which should make the future reports even more interesting.

As we established already, however, investors are a bit weary. We'll now try to figure out why.

The truth is, many people have been a bit skeptical about THCZ since the very beginning. There have been numerous articles and posts about the people heading the company and about their past. The skeptics say that they are simply trying to protect inexperienced investors from losing money, but the management team reckons that this is a deliberate attack on the company. Apparently, this dispute will need to be resolved in court.

Whatever the agenda of the so-called “bashers”, the negativity has definitely played a role in THCZ's downfall from the last few months. It might not be the only thing pushing the price down, though.

The saga around the audited financials and the up-listing to the OTCQB tier is also putting doubts in investors' minds. As we mentioned yesterday, the company missed a couple of deadlines and it's still using the alternative reporting standard which, put simply, doesn't cut the mustard.

We can see from the reports, for example, that more that 98% of the current liabilities consist of convertible notes, but we can't see what the conversion terms are. And when your money is on the line, those are extremely important.

Comments 1

1. Guest
September 29, 2015, 08:02PM

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