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Broke Out Inc (OTCMKTS:BRKO) Is Elite's New Pick

Broke Out Inc (OTCMKTS:BRKO) Is Elite's New Pick
Written by
Alex Carlson
Published on
March 7, 2016
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InsidrFinancial

Fresh off the disaster that was Cloudweb Inc (OTCMKTS:CLOW), Elite Penny Stock Group is back looking for more victims with Broke Out Inc (OTCMKTS:BRKO). We wrote about the end of the Cloudweb promotion last month and how Elite was looking for bagholders. With shares around $.07, it's easy to see how the deal turned out for investors.For those that are not familiar with Elite, they are the most powerful newsletter group on the OTC markets. Their websites include finestpennystocks.com, smartstockchoices.com, smartstockwinners.com, BestAmericanStocks.com, and many others. What made Elite so powerful is that they have a massive database of names and followers. They even have other newsletters following their picks and then trying to pass off Elite picks as their own. Elite will blast their list several times a day trying to get as many buyers into their stocks as possible.Prior to CLOW, Elite promoted AgriEuro Corp (OTCMKTS:EURI) and America Resources Exploration (OTCMKTS:AREN). Both started at pennies and then exploded. EURI ran as high as $2.09 and AREN hit $1.30. However, both came crashing down after Elite stopped promoting both names and they got hit with the dreaded skull and crossbones from OTC markets, which CLOW had been hit with immediately after the promotion began. This is something I'm sure Elite is hoping BRKO avoids getting, at least until after their done dumping their stock.Broke Out Inc describes itself as a German-based developer, publisher and marketer of mobile apps. The company offers apps to a cross section of users of smartphones and tablet devices who download and make purchases through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, among others. It owns over 30 paid and free apps at the moment with a focus on Europe and the USA. Some of their apps include Walk N Text, Lost droid, GPS Spoofer, Call Guard, Emergency Panic Button, Hide Caller ID, Spotty, Philips Hue NFC, Police Crime Watch, Whip It and Private Messenger among others. Some of the company's apps are free and supported by Google's Admob advertising services while other apps are Paid apps and can be purchased directly from Google or Apple's store.The latest press release said that the company acquired the Test for reaction app that runs on Android mobile devices. Test for reaction has almost 200,000 downloads and approximately 10,000 active users and is adding new users daily at a steady pace. The app has nearly 4,000 reviews on the Play Store most of which are highly positive. The app has a very simple concept which is to click on the screen as soon as the color turns green. The idea is to improve reflexes and reaction time by playing it over and over. The app is highly addictive as users continuously try to improve their score and compete with friends.In looking at the financials, it's not a pretty picture. Total revenue reported for the year ended December 31, 2015 was $131,515. Most of the company's revenues are attributable to third-party e-commerce sites and some at small retail shops in the UK. As of December 31, 2015, BRKO had total current assets of $3,762, consisting of cash and current liabilities of $12,458. These facts make it pretty hard to justify its current $79 million market cap at $2.50 per share.Elite's last three deals all ended trading for pennies. The money to be made on this deal above $2 will come from the short side and not from the long side. The key for investors in this one is understanding timing. Right now the pump is ongoing and you don't want to be left holding the bag when the dump comes. Proceed with caution and don’t be left holding the bag! We will be updating Insider Financial as soon as we know more. For continuing coverage on BRKO and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in BRKO and have not been compensated for this article.

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