Three Small Cap Stocks Acting Like the Titanic: FBEC, ICBU & DMHI

Small cap stocks Frontier Beverage Company Inc (OTCMKTS: FBEC), IMD Companies Inc (OTCMKTS: ICBU) and Dmh International Incorporated (OTCBB: DMHI) were all mimicking the Titanic last Friday by sinking 41.18%, 32.5% and 28.16%, respectively, last Friday. Moreover, all three of these stocks have been the subject of paid promotions or investor relation campaigns. With the promotions in mind, is it to late to dump these small cap stocks or will this week present a buying opportunity? Here is a closer look:

Frontier Beverage Company Inc (OTCMKTS: FBEC) Announces Changes and Proposed Plans

Small cap Frontier Beverage Company is a diversified holding company with the following subsidiaries: 22 Social Club Productions, Blue 22 Entertainment and App Quest LLC. On Friday, Frontier Beverage Company sank 41.18% to $0.005 for a market cap of $93,905 plus FBEC is down 77.5% since last March and down 99.2% over the past five years according to Google Finance.

What's the Catch With Frontier Beverage Company? According to various disclosures, transactions of $5k and $22.5k have or will occur to mention Frontier Beverage Company in various investment newsletters. Last Wednesday, Frontier Beverage Company announced new changes and proposed plans for 2014. The changes or plans included plans to expand into the Dance/Electronic, Rock and Country genres (which will include revenue streams such as live event and festival productions, artist signings as well as film and music production and distribution); exploring funding a majority of projects though direct event investment with the goal of movement to the AMEX exchange; and a cost cutting move involving the ceasing of operations for APPQUEST and the Beverage Division as the company will seek an outsourcing strategy rather than an in-house strategy in order to focus more on the growth of the core business Media & Entertainment. In addition, Frontier Beverage Company has come to an agreement with Gallant Acquisitions Corp to sell 30% or 72,000,000 of 22 Social Club Productions common stock for the return of 100 million shares of Frontier Beverage Company common stock that will reduce the issued and outstanding of the common shares of the company. Otherwise, Frontier Beverage Company announced back in December that it had signed a Joint Venture Agreement with Starzz Live for the formation of a Live Event Production Company for the production of live events in the Southern United States with the new entity to launch this month. A quick look at Frontier Beverage Company's financials reveals no revenues; net losses of $27k (most recent reported quarter), $21k and $33k and net income of $38k for the past four quarters; and no cash to cover $520k in current liabilities at the end of September. So perhaps investors should wait for more up to date financials to appear.

IMD Companies Inc (OTCMKTS: ICBU) Aims for a High on Marijuana

Small cap IMD Companies Inc is involved in the medical diagnostics and health and fitness industries plus the company has announced it intends to become a player in the Medical Marijuana sector. On Friday, IMD Companies Inc sank 32.5% to $0.0270 for a market cap of $1.66 million plus ICBU is up 35% over the past year and up 575% over the past five years according to Google Finance.

What's the Catch With IMD Companies Inc? According to various disclosures, a transaction or transactions of $15k has or will occur to IMD Companies Inc in various investment newsletters plus one promoter expects to be compensated to perform investor relations services for ICBU at some time in the future. Last Thursday, IMD Companies Inc announced it had formed a partnership with Anything Technologies Media Inc, (OTCMKTS: EXMT) by acquiring a 51% interest in R-Quest Hydroponics, Inc, the developer of the environmental master controller for medical and recreational marijuana hydroponic gardens. IMD Companies Inc paid 100 million common restricted shares to Anything Technologies Media Inc who will continue to manufacture the EMC-5000 system as part of the partnership. The press release noted:

"This is the first of many acquisitions and partnerships that the Company plans to make in the fast-growing medical, recreational marijuana sector. IMD is currently in negotiations with several other partnership and acquisition candidates in the supply and service industry for the marijuana sector. The company plans on making several announcements within the next 30 days as agreements are finalized."

A quick look at Google Finance for IMD Companies Inc's financials reveals revenues of $0.13M (most recent reported quarter), $0.10M, $0.11M and $0.11M for the past four reported quarters and net losses of $0.24M (most recent reported quarter), $0.06M, $0.04M and $0.10M. At the end of June, IMD Companies Inc had no cash to cover $0.11M in current liabilities and long term debt of $1.01M. So no marijuana highs yet for the company or for investors.

Dmh International Incorporated (OTCBB: DMHI) Prepares for an Acquisition

Small cap Dmh International Incorporated through its subsidiary, Touch Medical Solutions, is a medical software and device company specializing in PACS (Picture Archiving and Communications Systems), EHR (Electronic Hospital records), EMR (Electronic Medical Records), PHR (Personal Health Records), Medical Transcription, and Paperless Medical Office Solutions. On Friday, Dmh International Incorporated sank 28.16% to $0.0199 for a market cap of $4.23 million plus DMHI is down 60.2% over the past year or so according to Google Finance.

What's the Catch With Dmh International Incorporated? According to various disclosures, a transaction or transactions of $15k has or will occur to mention Dmh International Incorporated in various investment newsletters. Last Thursday, Dmh International Incorporated announced the launch of their FDA approved Touch PACS software for sale in Q1 of 2014 in anticipation of the completion of their announced merger with the Virtual Physician's Network (VPN) - a mobile healthcare business applications company offering the first fully integrated virtual event and professional networking platform combined with proprietary practice building tools for surgeons, healthcare professionals and medical vendors. In addition and on Wednesday, Dmh International Incorporated announced the expansion of its Advisory Board in anticipation of the merger while the last update about the merger came on December 12 when it was noted:

"Virtual Physician's Network's products are a great addition to our medical imaging and medical records software. They bring entirely new applications and markets to the company as well as seasoned management, software designers and sales support that has been lacking at DMH International."

A quick look at Dmh International Incorporated's financials reveals no revenues; net losses of $184k (most recent reported quarter), $380k, $146k and $152k for the past four reported quarters; and had $3k in cash to cover $928k in accounts payable at the end of September. Given Dmh International Incorporated's ongoing acquisition and financials, investors should wait for more financials to appear.