A Change in Business Brings Sollensys Corp. (OTC:SOLS) Back to Action
Only two weeks ago Sollensys Corp. (OTC:SOLS) crashed when more than 1 million shares were sold. Since then, the ticker has seen improved activity, as even without a promotion the stock was bought of around its new 50-cent levels. But the dramatic selling after a period of almost no activity show that SOLS may need a closer look. 
Sollensys claims to be in the business of touch screen panels, holding unspecified patents, and its promise is that it may benefit from the higher adoption of smartphones and tablets. Yet the market, already well-filled by giant producers, may not welcome SOLS, which is lacking in financial strengths:
- $460 cash
- $149,744 current liabilities
- Zero revenues
- $62,288 net loss
The most recent news is that SOLS has completed the acquisition of Sollensys Corporation, a Korean-based entity. It is possible that the OTC-listed company is a vehicle for the Korean screen manufacturer, and with this in mid we must await and see if the upcoming touch screens will produce value and achieve marketing success.
Indeed, Sollensys is the key to the SOLS change in business. Until August last year, the entity was trading as Health Directory, Inc. (OTC:HLTD), and this may explain the bad financial situation and the company acting as a vehicle for a Korean company to trade in the USA. The new launch as SOLS created activity in 2012, spiking the stock to $1 in a few days. The current upward movement with 22% in a day, plus the company’s promises of soon-to-come production may keep investors interested a while more.
A problem for shareholders may be the issue of 200 million new shares to acquire Sollensys, which is the only possible way due to the lack of other assets. With 500 million shares outstanding and daily volumes hardly exceeding 1 million, SOLS may be facing potential selling that could heavily affect the price even in a single day. The Sollensys team holds 40% of the company’s shares.
In any case, real production and marketing will certainly lag stock movements, so it is best to curb your enthusuasm for SOLS and estimate well how much risk you could absorb before risking big daily losses as SOLS has logged in the past.
