You know how suburban teens can look like real gangsters and not get immediately arrested? Sipping on some prescription cough syrup mixed with a soda is one way to do it.
Pumpers are having a go at Las Vegas headquartered Dewmar International BMC, Inc. (OTC:DEWM) – a company branding and distributing its so-called leading product – Lean Slow Motion Potion.[BANNER]
Investigative readers may already know that “lean” and “purple drank” are slang terms used to describe a beverage containing prescription cough syrup with codeine and promethazine – both medical-grade sedatives. The Potion is even branded in three colors – pink, yellow and purple, which happen to be the color varieties of cough syrup.
The drink has its own website which reeks of “gangsta” sentiment and invites users to “po it up”. It may look like the slogan ties in with the Potion name but it is also an encouragement to get high on cough syrup, used in rap songs. Traders are free to decide to what extent they want to be associated with this sort of product and message.
For those really determined to like DEWM, a look at financials may make them change their mind. The company’s current liabilities far outstrip its current assets. Even though DEWM announced that it renewed a distribution contract for a third year in a row in July, their latest 10-Q shows a net loss of $94 thousand and their year-over-year revenue is shrinking.
Related party transactions also make for an interesting read. DEWM distributes through a company that is wholly owned by CEO Marco Moran. In addition, investor money is also being spent on purchases of used vehicles from DEWM CEO-owned companies and on cash advances made to a company owned by Mr. Moran’s wife. That may not come as such a big surprise, knowing that Mr. Moran is talented enough to be the CEO, CFO, President and Director of DEWM.
Pumpers Penny Stocks SMS Publisher, one of the parties paid to tout DEWM, have a history of dredging failing companies. Perhaps the best example of this is their previous attempt with GWBU, the result of which can be seen on the chart.
While teenagers in the suburbs may find the whole sentiment of “leaning” attractive, investors would do well to weigh their options before they put money into a company that is sending some very ambiguous messages to its consumer base. Especially one that is marketing its product by associating it with the recreational drug habits of rap artists.
