Boreal Water Collect Is Going Down Hard
Do not kill me for posting this, I am long on BRWC. I just got it as an alert:
Boreal Water Collect (OTCMKTS:BRWC, BRWC message board) managed to fully double its market value last Thursday, after announcing that it is looking for strategic partnerships to increase investor value.
Evidently investors were impressed with the list of “current and past customers” - and indeed, it is an admirably long one.
However, it was clear from the get-go that the gains made possible thanks to the announcements were not to be retained – simply because the numbers in BRWC's latest financial report in no way supported said growth:
Cash - $125 thousand
Total current assets - $542 thousand
Total current liabilities - $2.3 million
Sales - $531 million
Net loss - $301 thousand
Said numbers paint a grim picture indeed – especially the “Depreciation and amortization” losses that total a staggering $98 thousand, and the "Stock based compensations" that have cost the company $42 thousand.
However, that's not the worst part of the report – not by a long shot:
As of November 3, 2014, there were 343,715,490 shares of the Registrant's Common Stock, $0.001 par value per share outstanding.
As of May 6, 2015, there were 2,021,625,349 shares of the Registrant's Common Stock, $0.001 par value per share outstanding.
Suffice it to say that the BRWC, who seems to be so preoccupied with investor value now has heaped nearly 500% worth of toxic dilution on its investors between Nov. 3, 2014 and May 6, 2015. And the fact that on March 27, 2015, the company's authorized common share count was upped all the way to 5 billion should be enough of a signal to investors that more dilution may be coming their way.
Further, it also bears noting that BRWC has a history of paid pumps, the timing of some of which coincide suspiciously with a lot of shares hitting the market.
Under normal circumstances, any one of these horrifying facts is enough to topple a ticker form its perch. The fact that they are all present makes BRWC a very likely epicenter of a horrible disaster for investors – and judging by its charts, said disaster may well have already begun.
