Is PEOPLES WAY COM/SH (OTCMKTS:PLWY) a “Short Bomb” as Advertised?

Is PEOPLES WAY COM/SH (OTCMKTS:PLWY) a “Short Bomb” as Advertised?

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The latest explosion higher on the OTC comes in the form of a 700% rip in shares of PEOPLES WAY COM/SH (OTCMKTS:PLWY). The reason for the move appears to be some dramatic hype surrounding the company’s move into the high-growth CBD market. As we have come to understand, the CBD space is expected to grow at an accelerating rate, ballooning to as much as $20 billion in total sales over the next 36 months.

As part and parcel of this very hyped idea, we are seeing one company after another “reinvent” itself as “the new and special CBD play”. And PLWY appears to be the latest example. It is certainly a successful ploy thus far, with shares launching higher. We also would note some detailed information disseminated on the stock about lofty short interest levels currently in play. As we have discussed in many prior pieces, short interest in a micro-cap is a clear bull item given the scramble for locating shares to cover that can commence once the squeeze is on. It’s a bit like the old stories from 19th century market lore about cornered stocks. The theme for PLWY is built of short interest and a pivot into the CBD space.

PEOPLES WAY COM/SH (OTCMKTS:PLWY) promulgates itself as a company that develops and sells wellness products. It offers weight management, pain relief, skincare, and bio-identical hormone replacement products, as well as supplements.

The company provides Pro-HM, a solution for hormonal imbalances in women; Pro-MC, a hormonal product for men; ProTec, an antioxidant supplement for protection against free radicals that destroy cells; and ProTrim, a dietary supplement. It also offers Oil of Mink that prevent fine lines and wrinkles in men and women; and Pro-GCM Plus and Pro-GCM, which are joint protection products. The company also sells its products online.

Peoplesway.com Inc. was founded in 1980 and is headquartered in Charlotte, North Carolina.

According to its recent buzz, the company is moving into the CBD marketplace, but this appears to be a very coordinated campaign of awareness, so it must be taken with some healthy skepticism.

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As noted above, PLWY just announced that it is apparently moving into the CBD space. However, we would note that the company does not appear to have put out a traditional press release announcing this move. We found it on InvestorsHub. It only costs a couple hundred bucks to put out a press release. It’s surprising that we couldn’t find one on any of the 10 financial media sites we follow for OTC company press releases.

In any case, that doesn’t seem to have stopped the momo mojo in the stock. Traders will note 630% tacked on to share pricing for the company in the past month.

In addition, the listing has benefitted from a jump in recent trading volume to the tune of nearly 870% above its longer-run average levels.

Now commanding a market cap of $8.24M, PLWY has virtually no cash on the books, which compares with about $1.4M in total current liabilities. One should also note that debt has been growing over recent quarters. PLWY is pulling in trailing 12-month revenues of $698K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -64.5%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $PLWY stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $PLWY, either long or short, and we have not been compensated for this article.

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