Agora Holdings Inc (OTCMKTS:AGHI) Enters the Spotlight Again

Many people have tried to pump Agora Holdings Inc (OTCMKTS:AGHI) over the last few months. First, in July and August, some investors were complaining about unwanted emails popping up in their inboxes. Later, in September, Damn Good Penny Picks and Penny Stock Prophet pocketed a total of $47,500 and they too tried to tout the ticker through emails, though it must be said that their alerts didn’t end up in the Spam folder. Currently, Shawn Roberts from The Profit Letter is in charge of the pump and he is managing a budget of a whopping $200,000. In exchange for this hefty amount, he has set up a colorful landing page which says that one day AGHI could reach more than $4 per share. That seems unlikely for the time being.

It would appear that no matter how generous the third parties are, AGHI simply refuses to jump. There are green sessions every now and then, but they are often characterized by negligible volumes and suspiciously small trade counts. At the same time, days of more active trading like yesterday are accompanied by disappointing drops. AGHI lost a hair under 18% and it closed Tuesday’s session at $0.32 per share.

The less-than-impressive performance isn’t really a shock. Once you take a look at the pumpers’ track record, for example, you’ll see just how badly their picks have performed over the years. Mr. Roberts and The Profit Letter, for example, tried to tout Monarch America Inc (OTCMKTS:BTFL) and Tanaris Power Hldgs Inc (OTCMKTS:TPHX) earlier this year, but he failed rather spectacularly at giving these tickers any sort of sustainable boost.

Some of the claims he has written in the promotional materials for AGHI sound extremely far-fetched which doesn’t help convince investors, either. Especially the ones who have done their due diligence.

Mr. Roberts is telling his readers that AGHI‘s business is so intriguing that it might soon unleash what he calls “the biggest bidding war we’ve ever seen”. The participants in the potential “war” according to him would be Netflix and Hulu, but we’re somehow struggling to see two of the biggest players in the content streaming business battling it out over a website that contains a collection of embedded YouTube videos.

And if they do, by chance, decide to acquire AGHI, they won’t get much in terms of assets and revenues. Here’s what Agora recorded at the end of the second quarter:

  • cash: $3,356
  • current assets: $8,761
  • current liabilities: $189,389
  • quarterly revenues: $12,354
  • quarterly net loss: $120,619

Not that it matters, but the revenues are a whopping 34% down on a year-over-year basis.

So, for the time being at least, AGHI doesn’t seem to be high on the list of Netflix’s acquisition targets. Even if you think that this might change in the future, you shouldn’t forget that at the end of the second quarter, there was about $233 thousand worth of principal amount that was convertible into stock at a fixed rate of $0.002 per share.

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