Aerius International, Inc. (PINK:AERS) Goes Insane Touted By Insane Stocks

If you have been trading with penny stocks for a while, you will definitely be aware of the highly dubious nature of paid promotions. While they all rarely work out, there are a number of distinct features all capable of making the stock take a cruel twist on the charts. The latest pump job on Aerius International, Inc. (PINK:AERS) is a clear example thereof.

Even though promotions only work out whenever they are backed by actual compensation, that is obviously no longer the case. Yesterday, the affiliates of Direct Global Media including Insane Stocks and Punter Stock Picks quickly spread the word on AERS by flooding investors’ mailboxes with emails touting the stock. As a result, AERS shares went up 140% by the end of the session, thus putting on a fairly good market performance in spite of the totally free nature of the campaign.

What about today, though? Does AERS seem strong enough to withstand the huge selling pressure that is about to unleash any minute? By all means, this is not very clear at the moment. On Feb. 8, the company issued a press release about a thorough reorganization of its management body. As it seems, what has been branded as a very high-potential smart phone prototype is now too dated, which is why a lot of updates are necessary to bring it up to par with the latest offerings on the market.

This is obviously a surprising turn of events. According to AERS‘s annual 2012 report (which, by the way, saw the light of day on Jan. 26, two weeks prior to the press release in question), that same product was deemed completed in terms of development. Now, it is said to undergo some redevelopment. How long and at what cost will this happen if it ever becomes a reality?

We question the future of the company merely because of its fragile financial state. AERS closed the 2012 fiscal year with $55 in the bank, $454 in revenue and a net loss of approx. $40 thousand. Not exactly impressive for a technological company whose ambition is to enter the lucrative smart phones industry.

Of course, AERS could potentially stand a chance of making a breakthrough if it succeeded in luring long-term investors into believing in the company’s business vision. While there is nothing wrong with the latter, AERS managers would be better off not wasting more time. Otherwise, the new prototype they will be developing in the months to come will quickly become dated again.