Agora Holdings Inc (OTCMKTS:AGHI) Surges On PR
After a whole month of underwhelming chart performance and meager daily volumes yesterday the stock of AgoraHoldings Inc (OTCMKTS:AGHI) showed that it is still capable of making explosive moves. In just a single session the ticker added exactly 25% to its value closing at $0.21 per share. With investors shifting more than 850 thousand shares the volume for the day was nearly 6 times bigger than the monthly average.
The reason for the sudden change in sentiment was the press release that was published by AGHI early in the morning yesterday. Having in mind that for nearly a month the company kept complete silence yesterday’s update on the progress of its FRAME social media management software and the ongoing accounting audit definitely got investors excited. Will the hype be enough to support the current price levels of the stock, though?
After all, as a result of the significant jump up the chart the market cap of the company now stands at more than $25 million, which is nothing short of ridiculous. The underlying financials of the company cannot justify this market cap in any way – opening the annual report for 2015, although it contains unaudited financials, shows that AGHI had:
• ZERO cash
• $9,902 total assets
• $306 thousand total current liabilities
• $22,630 gross revenue
• $417 thousand net loss
While the balance sheet is sufficiently depressing as it is taking a more in-depth look makes things even worse. Compared to 2014 the reported revenue is actually down by 35% while the net loss has increased from $82 thousand to more than $400 thousand. At least AGHI were able to renegotiate the terms of some of their convertible notes and as a result the conversion price was changed from $0.002 per share to $0.30 per share.
When considering whether to put any money into the stock of the company or not you should also take into consideration the fact that in February and March the ticker was targeted by a widespread paid pump. Not to mention that despite having atrocious financials AGHI themselves decided to pay Quality Stocks $25 thousand for 150 days of “advertising, branding, marketing, investor relations and social media services”.
