Borislav Tonev

International Spirit (OTCMKTS:ISBG) Finds a Bottom

by Borislav Tonev February 29, 2016

About a year ago, International Spirit (OTCMKTS:ISBG, ISBG message board) entered the alcohol beverage sector and it rather boldly announced that it will “establish itself as one of the fastest growing alcohol brand developers in the industry”. Has it worked?

Well, the stock performance doesn't suggest that ISBG's claims are founded. The ticker has plummeted from over $0.02 per share back in April of last year all the way to the lower end of the triple-zero range, and although it managed to bounce back to $0.0007 on Friday, it did it after hitting a brand new 52-week low of $0.0004.

The Q3 of 2015 results don't look like they belong to an industry leader, either. Instead, they look like this:

  • cash: $335 thousand
  • current assets: $730 thousand
  • current liabilities: $414 thousand
  • NO revenue
  • quarterly net loss: $425 thousand

ISBG's reporting habits on the whole aren't in line with the “a serious contender in the alcohol business” thesis. The report for the first quarter of last year, for example, came out after the one for the second quarter and the figures you see above got published almost two months after they were due. More importantly, the reports aren't particularly informative.

We can understand, for example, that the company's O/S count has grown from around 390 million in March 2015 to nearly 405 million six months later, and the management team were kind enough to tell us that by December, it had ballooned to almost 617 million. What they didn't tell us, however, is who received the newly printed shares and why.

PR-wise, things are not looking terribly well, either. There was a series of announcements about sponsorship contracts and endorsement deals last year, but over the last two months, the silence has been deafening. Despite this, some people are still willing to give the ticker a chance.

Last week ended with a daily volume of almost 135 million shares (about ten times the thirty-day average) and the message boards are now buzzing with activity. Some people reckon that a technical bounce is in play while others are spreading all sorts of rumors about.

Whatever the reason for the unexpected surge of volume, you have seen already that ISBG hasn't really achieved much over the last twelve months or so. Bearing this in mind and acting accordingly is absolutely essential.

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