American Graphite Technologies Inc (OTCBB:AGIN) Still Going Down

American Graphite Technologies Inc (OTCBB:AGIN) is one of those companies in the OTC Markets that is in a decent financial state, but unfortunately there are other bad signs that may change a persons mind on investing in them.

It seems, however, that a lot of people are buying what AGIN are selling and this is visible even in yesterday’s short trade session. In the 3 hours of trading yesterday the price of AGIN‘s stock stepped even lower as it fell a further 7% down the charts going from $0.4225 at market open to $0.39 at the last trade. The majority of the trades were made in the first hour and that drove the price down to the day’s low of $0.375.

Even the pumpers didn’t manage to lift the stock as the only thing that the promotional campaign did was to raise investor awareness that crushed the stock as the dumping commenced. The volume of yesterday’s session wasn’t one of the biggest recently, but still the shares that switched hands were quite a lot considering that the trade session lasted only 3 hours. A total of 713 thousand shares were traded making the total trade value $278 thousand which is more than double their average of 418 thousand.

The light in the end of the tunnel is the fact that AGIN have pretty decent financials for an OTC company. For those of you who haven’t followed our articles about AGIN we will take a quick moment to show you what we mean with the numbers of prime interest from their latest quarterly report covering Q1 of 2013.

• cash: $131 thousand
• current assets: $230 thousand
• total liabilities: $5,129
• revenue: $0
• net loss: $193 thousand

As we mentioned before. The only thing that we consider good for this moment is the lack of liabilities, as the company is yet to generate any revenue. However, even with the rather good financials there are still disturbing things that don’t speak good for AGIN and which should be a red sign for every serious investor who thinks before buying a stock.

Probably the most disturbing thing about AGIN is the location listed in their filings as their office, which is 3651 Lindell Rd., Ste D#422, Las Vegas, NV. A quick Google search reveals it to be a virtual office address which is home to many penny stock companies. As we told you in one of our previous articles about AGIN, their CEO, CFO and President is Rick Walchuk who is also at the helm of New America Energy Corp (OTCBB:NECA) and Viosolar Inc (OTCMKTS:VIOSF). We are not surprised to find that the office of NECA is also located at the same address as AGIN‘s.

As we said before, both companies don’t have good financials, so you can guess where AGIN might be heading. Furthermore, we expect more pumps of AGIN judging by the long history of promotional campaigns that NECA has. Be sure to do your due diligence and weigh out the risks before deciding to invest in the risky stock of AGIN.