It was expected that the gains recorded by HIGH PERFORMANCE (OTCMKTS:TBEV) on Thursday may not last. In last trading session, the stock price of High Performance crashed more than 20% to close the trading session at $0.00190. The decline came at a share volume of 336.18 million compared to average monthly share volume of 106.51 million. It marks the largest dollar volume that TBEV stock has recorded in more than two months. Investors should note that TBEV performed extremely well in the month of August.
The buzz
There doesn’t appear any apparent reason for sharp crash, beyond company’s unimpressive financial performance and the fact that it seems absurdly oversold for what it is. As per the last financial report, High Performance reported total assets of $308,000 in cash, current liabilities of $4.1 million and net loss of $282,000. No revenue was recorded in the quarter. In addition, the company’s share structure is equally dismal warning the investors to conduct due diligence before investing into the stock.
High Performance’s $2.18 million of debt is formed of convertible notes. A significant part of these notes have been converted into company’s shares, following which TBEV’s outstanding shares has ballooned to 2.2 billion in June from 212 million in February. The market cap of company stands at 5.40 million.
The concerns
Investors should keep in mind that the share structure by no means supports investing in the stock. Also, it is not the first time the company has released such large numbers of shares. In fact, in an attempt to make its stock liquid so as to keep releasing discounted shares, HIGH PERFORMANCE (OTCMKTS:TBEV) was forced to opt for a 1 for 10 reverse split in February. The fact that almost 1 billion of the released shares were converted at rate of just $0.0005 per share just seems to intensify the problem.
