Split-adjusted shares of what's now Purple Beverage Co. have risen 49,000% in five months to a recent $2.95 and a $152 million market cap. That's 105 times the latest book value.
Purple Beverage was previously called Red Carpet Entertainment before a recent reverse merger. Purple Bev boss Theodore Farnsworth reportedly acknowledges shares are "ahead of ourselves." Forbes notes shares of XStream Beverage Network lost 99.9% over a six-year period under Farnsworth.
On Friday Purple Beverage (PPBV) (PPBV.OB) closed at $2.85 a share. Yahoo Finance reports Purple Bev's market cap is $157.49 million. How about the $8.00 a share 52-week high? Does that mean PPBV was a $1 billion company??? PPBV has no warning labels on PinkSheets.com, but short interest is up 280% to 352,000 shares as of March 14, since the end of February. Still that's only about 1% of 31.7 million shares outstanding according to PinkSheets.com. Also, based on 31.7 million s/o and Friday's $2.85 a share close, that's a market cap of around $90 million and not $157 million as Yahoo Finance reports (and the $152 million reported by Forbes).