Dragni Dragnev

Pocket Games Inc. (OTCMKTS:PKGM) Crashes After Filing

by Dragni Dragnev February 18, 2016

Pocket Games Inc. (OTCMKTS:PKGM, PKGM message board) ended up in double zero land once more once the market had time to react to the filing of its latest financial report.

A lot of investor hopes and dreams for PKGM rode on that 10-K. Unfortunately, the hopes and enthusiasm that weren't worn down by the waiting for the report itself were crushed by the horrifying picture of OTC Markets mediocrity that it presented for everyone to see.

Here's an excerpt of said report:

  • cash - $24 thousand
  • total assets - $56 thousand
  • current liabilities - $1.8 million
  • annual revenues - $17 thousand
  • annual net loss - $2.4 million

PKGM's achievements have never been impressive – quite the contrary, however this time the company seems to have failed to exceed even the dismal expectations set before it. Still, what's worse is the fact that this is not even PKGM's biggest shortcoming.

No, the biggest red flag that PKGM's reports have to offer are related to its share structure history. A quick check reveals that the company's shares outstanding have grown from 16 million to 61 million during the fiscal 2015 alone.

But, when you think about it, how can that number not balloon? After all, PKGM is in the habit of issuing convertible notes that can be turned into shares at discounts of up to 40%. It still has about a $120 thousand worth of debt.

Long story short – PKGM's latest report is so disappointing that it's really no wonder that the ticker is crashing as horribly as it currently is. Let the buyer beware.

Comments 1

1. Guest
February 22, 2016, 10:31AM

Quotes Lousy speculative article. If OTC companies don't sell shares to keep business running, who does? AAPL?

Type the characters that you see in the box (5 characters).