Borislav Tonev

Sports Endurance Inc (OTCMKTS:SENZ) is Acting Weird

by Borislav Tonev February 26, 2016

It was announced a few weeks ago that Sports Endurance Inc (OTCMKTS:SENZ, SENZ message board) has a new CEO. His name is David Lelong and shortly after he took the helm, he acquired 40.5 million shares or about 52% of the company for a grand total of $55 thousand. That's what you call a great deal.

At yesterday's close of $0.58 per share Mr. Lelong's stake in SENZ has a market value of about $23.5 million. Let's see if his net worth is about to increase even further.

The truth is, SENZ got to where it is right now in a very strange way. The ticker did generate about $308 thousand in dollar volume during yesterday's session, but there's none of that social media buzz and message board hype that we normally associate with this sort of activity. The company hasn't issued any press releases for quite a while and its latest 10-Q is not exactly confidence inspiring.

Actually, “not exactly confidence inspiring” probably isn't the best way to give you an idea of how bad SENZ's financial situation is. The best way to do that is to give you the figures:

  • NO current assets or revenues
  • current liabilities: $21 thousand
  • quarterly net loss: $19 thousand

If you're still thinking that SENZ might actually deserve its $45 million market cap, you should probably have a quick look at the company's history.

The ticker first appeared on the OTC in 2010 and mere months later, it fell victim to a rather ugly pump campaign. The people who ran the promotion purportedly got $1 million out of it, but soon enough the FBI and the IRS got wind of the scheme and it was all very ugly in the end, both for the promoters, and for retail investors.

Of course, that was a long time ago, but the company's more recent activities also tell an interesting story. On November 3, when SENZ's market price stood at $0.25 per share, the company sold to a third party a total of 14.5 million shares at a price of $0.001 a pop. In addition to this, last year, BK Consulting, the former majority shareholder, received about 20 million shares as a conversion of debt at a price of $0.002 per share.

Something is definitely going on. Whatever it is, you as an investor might not be in the best position once it's all over. Treading very carefully is essential.

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