Abby Inc (OTCMKTS:ABBY) Rising On a Big Promotional Campaign
Abby Inc (OTCMKTS:ABBY) is a shady company that began its business in December, 2000 with the idea of becoming an oil exploration company. As it happens with most OTC companies that didn’t happen and most recently they have their minds set on entering the obstacle race course industry, a thing that will most probably never happen.
The company started trading its stock around September 2012 and the picture hasn’t been looking good. Even though they virtually have no business their PR team has recently came out and it is trying to tout ABBY‘s stock. The usual paid promotional newsletters aren’t staying behind and we are witnessing one of the biggest pump campaigns that hit the OTC Markets recently.
At first, they tried to pump ABBY‘s stock in July, but nothing happened and things quieted down with the last emails being sent on July 19. On August 15, however, the pumpers renewed their effort and started sending email after email with compensations that were ranging from $4 thousand to $15 thousand.
In Friday the people who were holding significant amounts of ABBY stock congradulated themselves with a 25% gain in price on a volume 20 times their average. In the end of the day a total of 3.1 million shares had switched hands in term generating the highest trade value in the company’s history, which was estimated at $230 thousand.
What do ABBY have in their bank to support such interest, however. Our opinion is that with the $7.5 million market cap of the company’s stock is overrated, but you can take a look at the numbers of prime interest from their quarterly report covering the period ended May 31, 2013 and decide for yourself.
- cash: $0
- total current assets: $0
- total current liabilities: $30 thousand
- revenue: $0
- net loss: $1,7 thousand
Doesn’t look pretty, does it? When you top that with the fact that the CEO of the company, Amanda Flores is the same Amanda Flores, who is also at the helm of ATG Inc. a company that is listed as the third party paying some of the promoter outlets for the promotion of ABBY it all starts to look grim. Not to mention the fact that the company has no website and no logo whatsoever.
With all that in mind we can say that ABBY is probably one of the riskiest stocks to invest in at this moment and we have a big doubt that they will ever be something more than a shell, used to enrich insiders. If you are thinking of playing ball with the people who are calling the shots be sure to do a lot of due diligence and be prepared to take a huge risk.
On the other hand there are more solid companies that are either doing a lot for the development of their business or are better at this game than ABBY. One of the freshest additions to this rare OTC Markets breed is Montalvo Spirits, Inc. (OTCMKTS:TQLA), who unfortunately haven’t been doing good in the charts lately. They closed Friday’s session with a fourth red candle for the week at $0.433.
On the other hand the lack of definitive news from Affymax, Inc. (OTCMKTS:AFFY) and the investigation of their voluntarily recalled drug OMONTYS aren’t doing much for the stock that has been hovering around the $1.50 mark for quite a while now.
