Borislav Tonev

Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) Heats Up Again

by Borislav Tonev March 1, 2016

Back in May 2013, the members of Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB, KBLB message board)'s management team issued a press release in which they talked about commercial scale production. Have these words had any effect on the company's financial situation?

In a word, no. The latest 10-Q covers the third quarter of last year and the figures in it look like this:

  • current assets: $221 thousand
  • current liabilities: $2.1 million
  • NO revenues
  • quarterly net loss: $349 thousand

Right now, almost three years after the PR mentioned in our first paragraph, the members of the management team are once again talking about commercial scale production. But will they finally manage to get the clever fibers out on the market?

Apparently, investors reckon that they will. The PR came out a few hours before the start of the session and it caused quite a stir. Mere minutes after the opening bell, the stock spiked and it reached a high of almost $0.05 per share. It did stumble and it came down almost as quickly as it went up, but it still managed to close the session at $0.0275 (about 20% in the green) which coupled with the increased volume shows that the market is genuinely excited about the stock.

The press release certainly sounds encouraging, but people might be ignoring the fact that a few things will need to be completed before production can actually begin. The fibers will be produced by a subsidiary in Vietnam. The subsidiary in question will need to be established first, it will need to lease a production facility, it will need to hire local staff, it will need to train the local staff, and it will need to cross breed some silkworms. That is a lengthy to-do list and the people at KBLB's helm reckon that they'll need “several months” to tick it off.

Several months” could be an extremely long period of time in Pennyland, especially when there's a significant amount of discounted shares flying around. Fortunately for the shareholders, KBLB has managed to stay away from the toxic financing providers, and it has funded its operations by selling shares instead. It's been selling those shares at a 20% discount to the market price, however, which means that if the ticker surges on, the profit opportunity for certain people could be too big to miss.

Comments 0

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