Stock Mister Tries to Resuscitate AEGEA Inc (OTCBB:AEGA)
We last wrote about AEGEA Inc (OTCBB:AEGA) three months ago and if you take a look at our article, you’ll see that back then, the ticker was put under the pressure of a $750 thousand stock promotion. Despite the big budget, AEGA managed to register nothing more than a few days of heavy volume after which, it suddenly dropped off the radar.
Yesterday, it spiked again, registering a record-breaking 5.7 million shares in trading volume and a healthy 15.9% increase in value. Naturally, we had to see what’s been going on over the last three months.
In terms of operations, things around AEGA seem to be moving at a break-neck speed. Between October 14 (the date of our latest article) and November 25, the company issued no less than five press releases. Apparently, the special foreign investor program has been going along nicely, they signed a vacant land agreement with an unnamed third party according to which they can acquire around 2,200 acres of land in Florida, and, at the end of November, they proudly announced that the company is ahead of schedule (apparently, it took the entertainment experts at The Walt Disney Company (NYSE:DIS) ten years to complete their first theme park whereas AEGA will be ready with their project in less than four).
Considering the copious amounts of optimism coming from the press releases, AEGA‘s stock performance was pretty horrific. In October the share price was hovering around $2.50 while in December it slipped below $0.05 (that’s around 98.4% in losses for the numerologists among you). A catastrophic performance, no doubt, but is it all that surprising?
Well, the company did publish the 10-Q covering the third quarter of 2013 on November 14 and it showed that AEGA‘s financial situation as of September 30 was even more devastating than the chart movement. Here’s a summary of the most important figures:
- total assets: $19,490
- total liabilities: $568 thousand
- no revenue since inception
- quarterly net loss: $656 thousand
You don’t need to be an expert to know that $20 thousand isn’t really enough to build a mega resort destination. They are also not too keen on giving us an estimate on the amount of money coming from the foreign investor program, but once thing’s for sure – they’ll need a lot of it.
As part of the vacant land contract, AEGA will need to pay a total of $13,350,000. The latest payment amounts to $12,350,000 and is due in a couple of months.
On the whole, a typical pump scenario – lots of optimism, no real figures to back it up, and, consequently, catastrophic losses for the people who fell for the hype.
More worryingly, Stock Mister (who received $50 thousand) and SixFigureStockPicks (who pocketed $10 thousand) are now trying to resurrect the promotion. A couple of emails landed in our inbox yesterday and, probably because of them, AEGA managed to rack up a significant volume. As you can see, however, there’s very little to prevent another drop. Which, by the way, is what happened to Fresh Healthy Vending International Inc (OTCBB:VEND) (another heavily promoted OTC Stock) yesterday. VEND managed to incinerate around 13% of its value while shifting more than $4.6 million worth of shares.
Be sure to do a lot of due diligence before putting any money on the line. AEGA already showed us that it’s prone to wiping out vast amounts of money in short periods of time and, right now, there’s very little to stop it from disappointing investors once again.
