Advanced Battery Technologies, Inc. (OTCMKTS:ABAT) Surges Again
Advanced Battery Technologies, Inc. (OTCMKTS:ABAT) added 10% to its market value yesterday, for no apparent reason.
Looking at the company’s history, one can’t help but feel perplexed. ABAT seemed to have been doing great, and showed care for investors, straight up until the point when it got de-listed from the NASDAQ. Then it sort of lost interest in the market, and simply gave up. As it’s OTC Markets profile indicates, not a single financial report has been filed in over 3 years.
One could argue that it still kept investors informed, through statements posted on its own site, but the numbers that it gave were unverifiable. With no due diligence possible, most of its supporters have been buying blindly ever since. That is most probably why ABAT enthusiasts were so happy to learn that the company is finally planning on resuming its reports.
As can be seen on the charts, this news, as well as the announcement that it is planning to make a share buyback pushed the ticker to quite the high in the last couple of sessions.
Both news are excellent, of course, and one could understand why they drove stock prices up. Still, investors probably shouldn’t fall head over heels for ABAT, just because the company made a few promises. Why?
Every investor should be fully aware that knowledge is power, especially when it comes to the stock market. When the official filings are made, investors could research ABAT and commit to its stock knowing all the details, and thus have a measure of control over the fate of their investment. However, presently, they simply have no knowledge and no power over the situation.
And by the end of the day, what do investors know?
They know that ABAT is a Chinese company that used to be great, but has not reported in years. They know that its behavior is erratic, and until recently it showed almost no concern for investors. They know that it has promised to mend its ways, and could probably do so, but hasn’t shown anything for that promise to date.
All in all – investors currently have nothing solid to convince them to commit. Nothing but hype and hope. And we all know what happens to stocks that rise on hype alone.
