Alkame Holdings, Inc. (OTCPK:ALKM) is a name that I believe is currently the target of a penny stock promotion scheme. It is my view that the stock's intrinsic value is somewhere near $0, and it is with conviction that I recommend that any investors currently in the name sell the entirety of their stakes immediately. I also believe that Alkame Holdings, Inc. is a stock definitely worth shorting. My track record of identifying and publicly exposing such highly overvalued equities is excellent.
Little Revenue. Debts. No Business. Bright Future?
As is usually the case with these types of hyped-up scams, it takes only one quick glance at the balance sheet to realize that the $104m market capitalization that this equity commands is beyond ludicrous. With $29,191 in revenues in the last quarter, this company is far from deserving a $34m valuation. It's my suspicion that the purpose of this company is not to succeed but to sell stock. The recent volume is due to an overtly bullish email campaign repumping Alkame Holdings, Inc.
Picture of ALKM Chart
You can see that trading in Alkame Holdings, Inc. started seeing really big increased volume on Apr 30, 2014. This is exactly when this landing page of Alkame Holdings, Inc. went up with a 1,500,000 budget. Coincidence with the time of the landing page and increased volume in Alkame Holdings, Inc.? Absolutely not. Now Alkame Holdings, Inc. is getting repromoted heavily once again. Will you fall for it again?
Now let's look at some of the disclaimers.
$200k Compensation to Penny Stock Crew
$15k compensation to Penny Stock Circle
$5k compensation to WhisperonWallSt
$20k Compensation to StockImpossible
$27k compensation to RDI
$10k Compensation to AwesomeStocks
$10k Compensation to Sms Penny Picks
Reasoning for Stock Promotion
Look no further than these stock promoters' disclaimers to know why the reason for so many promotional emails.
"Penny Stock Crew has been compensated $200,000.00 for the 1 day profile of Alkame Holdings Inc from Capital Financial Media. which services include the issuance of this release and the other opinions that we release concerning of Alkame Holdings Inc Crew has not investigated the background of Capital Financial Media the hiring party. Anyone viewing this newsletter should assume the hiring party or affiliates of the hiring party own shares of Alkame Holdings Inc of which they plan to liquidate, further understanding that the liquidation of those shares may or may not negatively impact the share price. Penny Stock Crew has received this amount as a production budget for advertising efforts and will retain amounts over and above the cost of production, copywriting services, mailing and other distribution expenses as a fee for our services. As such, our opinion is neither unbiased nor independent, and you should consider that when evaluating our statements regarding of Alkame Holdings Inc"
Key phrase "Anyone viewing this newsletter should assume the hiring party or affiliates of the hiring party own shares of Alkame Holdings Inc of which they plan to liquidate, further understanding that the liquidation of those shares may or may not negatively impact the share price."
After going through the filings, you come to the conclusion that there are 60,000,000 free trading shares in insiders' hands. Alkame Holdings, Inc. was promoted in May, let's take a look at how it fared.
It went from $1.08 to a low of $.39 in three trading days! What a dump. I would not be surprised to see another dump like that happen again. The main reason behind all the recent promotion is that the insiders of those free trading shares were unable to unload all their shares into the last promotion so they are paying promoters again to create a market to sell into. You have been warned!
Using Lebron's Cramps to kick start more stock promotion?
Alkame Holdings, Inc. is really using Lebron's cramps in game 1 of the NBA finals to fuel some publicity by offering Lebron a one-year supply. Amazing how the email stock promoters are running with that in all their overly bullish email campaigns. Danny Green another player who's playing in the NBA finals even posted a picture on Instagram/Facebook of him with Alkame water with the caption "Staying Hydrated." My guess is Danny Green has never really heard of a pump and dump. Go here for an interesting read on it.
If you own shares of this company, get out now. Do not hope that you can hang on to sell them to a greater fool. These shares are worthless. I have showed you that the reason for the promotional spam indicates that the individuals behind this stock scam are trying desperately to unload their worthless shares onto the unsuspecting public and book a huge profit before the inevitable collapse. If you are a more sophisticated investor and can get a borrow on these shares, then I believe that shorting this name will be highly lucrative for you. This has been one of the most hit email campaign from low tier promoters I have seen since Definitive Rest Mattress Company, which I wrote a report on also. This will end horribly just like the promotion on Alkame Holdings, Inc. did in May. You have been warned.
Disclosure: The author is short ALKM. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.