Coates International Ltd (OTCMKTS:COTE) Going Up Once Again

[[tagnumber 0]][[tagnumber 1]]The performance of the stock of Coates International Ltd (OTCMKTS:COTE) has been quite interesting lately. After sliding through most of the first half of the year we saw the ticker explode onto the scene with a massive 482% gain on June 2 after the company announced an update for four of their firm orders that should total more than $50 million from the UAE.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]After passing the one cent per share mark, however, we saw the ticker quickly turn to a slide and go into double–zero land once again. This isn’t surprising, however. After all, despite the highly positive news we couldn’t ignore the fact that [[tagnumber 6]]COTE[[tagnumber 7]] is in a pretty dark place right now. Here is what the company had at the end of the first quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $72 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $190 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $7.1 million[[tagnumber 13]] [[tagnumber 12]]revenues: $5 thousand[[tagnumber 13]] [[tagnumber 12]]net loss: $2.8 million[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]And looking at these numbers we reach the really big red flags. In order to fulfill the massive orders from the UAE the company will need to crank up production which is hard when you’ve got $72 thousand in the bank.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This is where toxic funding comes in play. [[tagnumber 6]]COTE[[tagnumber 7]] has been issuing and is still issuing large amounts of common stock at discounts ranging from 30% to 40%. In The end of last month the company announced that Southridge Partners II LP wants to buy $20 million of COTE stock over the course of three years.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]In our previous article we estimated that if [[tagnumber 6]]COTE[[tagnumber 7]] manages to remain at similar levels to the one it has now the amount of shares that will see the light of day in just the first year will be upwards of 1.3 BILLION, which will mean that the company will have to increase its authorized share count.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Still, that doesn’t stop the ticker from climbing up the charts and going even higher. The ticker added 28.77% in Tuesday’s session for no apparent reason and after a press release from yesterday we saw the ticker go up by another 38.30% for a close at $0.0065 while the 28 million traded shares generated $172 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]It seems, however, that the upward run might come to a halt sooner than expected as we see [[tagnumber 6]]COTE[[tagnumber 7]] is 15.38% down as of the writing of this article and might very well slide further by the end of the day.[[tagnumber 2]]