November 28, 2016: The combination of a share retirement and the announcement of a plan to enter the marijuana industry have sent shares of Noho, Inc. (DRNK) on a climb from the doldrums of $.0001 to the lessor doldrums of $.0008. The climb, while perhaps remarkable in percentage increase over the last week, is negligible when considering the pounding shareholders have taken over the last few years.
|DRNK - 3 Year Chart|
DRNK's financials are rather suspect. The most recent financials, filed on November 17, 2016, report revenues of $4,000,000 all credited to distributorship revenue that we suspect is phony. Our suspicions of hocus pocus are supported by a report of zero cash on hand in spite of the fact that the revenue windfall supposedly led to a net income of $3.6 million. Even with the $2 million listed as receivable, shouldn't there be some cash in the bank or at least some sort of similarly valued tangible asset?
Notably absent from the revenue report is any sales of its Hangover Shot, a formerly popular scheme for selling stock. Perhaps the most notable hangover cure scheme is that of Hangover Joe (HJOE) a now delisted issuer that screwed over those members of the public that did not heed our warnings. While DRNK reported about $610K in sales during the previous year, no sales have been booked for the recently reported year in spite of plenty of inventory on the company's books. That should raise any astute investor's antennae.
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DRNK may have a bit more upside, but make no mistake; this is a scam and even if the company manages to pretend to find a way into the marijuana industry, the main focus is to make insiders money. The retirement of shares is merely a shell game, as the currently listed liabilities of almost $800K will lead to the regeneration of certificates representing billions of new shares. And then there is the looming probability that current buyers will be reverse split out of there positions. It's probably safest to consider this game played out, at least until then.