BBDA PUMP & DUMP ALERT!!!!Bebida Beverage Company (BBDA)
There was one thing in the email that caught my eye…
“Massively Potentious Forward-Looking Events”
It was one of the reasons we were told to buy this stock. Now, put the fact that this guy can’t spell aside, and let me ask you a simple question… “What the hell does that mean?”
It’s like a 5th grader broke open the dictionary and tried to use every big word he could find.
Anyway, this pumper – Actual Gains – (Really, that’s their name… I can’t make this stuff up.) is pushing BBDA hard.
And I can see why… they tell everyone in their disclaimer they just bought the stock… and they might sell it at any time. So they hope you and I buy and drive the stock higher… then they can sell. Are they really going to do that? I don’t know, but you can decide for yourself.
What’s amazing is the pumper is willing to put real cash behind this company… so there must be something good. RIGHT!?!
Not so fast…
I did a little digging. The company hasn’t ever filed anything with the SEC (no surprise there)… so I’m relegated to using the little information I can find on the internet.
And what I found looked great. I actually found a set of interim financial statements… and it looks like they have real numbers.
Unfortunately, these financials are like the cute girl you first see at the bar. A quick glance says she’s hot… but the closer you get and the longer you look, the older and uglier she becomes. Even after a few drinks!
It’s the same thing with these financials.
What tipped me off?
They look like they were put together by a first year accounting student. For example, there are some glaring basic mistakes… like calling the revenue line “Gross Income”. If you’re going to prepare financials, remember… Revenue is at the top of the Profit & Loss statement…. Income is at the bottom.
What else was wrong?
Well, they list their Revenue (mislabeled) at the top… then they list Cost of Sales. So far so good. But the next line item throws me for a loop. They list Gross Margin, which is right, but they do the basic math wrong.
Gross Margin is Revenue LESS Cost of Sales.
Whoever prepared these financial statements added them together. It’s a simple mistake and one that anyone with a basic accounting background would catch within 12 seconds of looking at the numbers.
But here’s where it gets really bad…
Because of this simple mistake, every following number on the Profit & Loss statement, the Cash Flow statement, and the Balance Sheet is WRONG!
How can you buy the stock of a company when management can’t get Accounting 101 right?
This is a “Pump” and I’m not waiting around for the “Dump”! BUYERS BEWARE! BBDA IS A HUGE SELLING PRESS SHARES MACHING SCAM! Thoughts? Tia.
