Baltia Airlines, Inc. (OTCMKTS:BLTA) Works its PR Magic
It looks like the most natural thing for the stock of a brand-new airline to take off. Now, Baltia Airlines, Inc. (OTCMKTS:BLTA) will also have to remain airborne. Still, the newcomer saw extremely active trading in February, which brought the stock price upward by nearly 350% in the last few days. On Monday, BLTA added a net of 3.45% on the day after buying and selling collided in the session, reaching $0.033, on buying volumes above $578,000.
The last ten days came with relentless buying for BLTA, though its latest promotional campaign is a bit old, with the last emails landing at the end of January. BLTA padded the publicity with its own PR, stating that it would be training cabin crew soon, as well as launching a new website. But the fact remains that despite the long history, BLTA is a one-plane company that is yet to serve routes. And the pilots are still in training- but this does not stop the OTC markets from reacting, betting on future performance. All the while, BLTA still awaits the authorities to grant its license.
The twist is that BLTA has a base in the Willow Run Airport in Ypsilanti, and that airport has not been serviced by flights in decades, being replaced by the Detroit Metropolitan Wayne Country Airport. But BLTA has the ambition of being the only airline that connects New York directly with St. Petersburg.
The plans of this startup look ambitious, though at the current stock price, a lot may happen before any plans materialize. BLTA happily admits that it is still raising capital for its efforts, and it seems the raising went a bit far, inflating the outstanding shares to upward of 3.17 billion. Let’s see if the other financials match the market cap of above $104 million. BLTA has on board:
- $54,591 cash
- $2.2 million total assets
- $558,891 current liabilities
- $93 million net loss since inception
It is easily seen that BLTA would be burdened by the lengthy and expensive development process. The other problem is the large number of shares that would not allow enough scarcity to boost the stock price. Other similar companies with relatively solid business models are stuck in extremely low prices precisely because of a similar share structure.
Bioelectronics Corp. (OTCMKTS:BIEL) is one such company that made something of a run in the past days, but still remains at $0.006. Still, in the short term, BIEL made a tenfold jump in its share price- but the past history shows that its dramatic runs fizzle out quite soon.
Bebida Beverage, Inc. (OTCMKTS:BBDA) shows a similar graph, as the company has a long history of developing its product range of soft drinks, but its stock price only has temporary gains, reverting to its usual low position. BBDA managed to climb from $0.0008 to $0.003.
If you like the current liveliness of BLTA, keep in mind that this is a unique run for the company, and there are no guarantees on how long it would continue.