American Transn Holdings (OTCMKTS:ATHI) Blasts Off!

American Transn Holdings (OTCMKTS:ATHI) exploded 216.67% up the charts yesterday and a whopping 500% up the day before that, but everything about the company screams BUYER BEWARE. Why?

Where to start… One glance at ATHI‘s latest financial report, outdated as it is, paints a pretty grizzly picture:

• Cash & current assets – $44 thousand
• Total assets – $251 thousand
• Total current liabilities – $272 thousand
• NO REVENUES EVER
• Net Loss – $12.5 thousand

With financials such as these, it is no wonder that the ticker was stick in triple zero obscurity for months upon months. And it’s not like the red flags end there – no, not by a long shot.

One look at the company’s share structure history yields a grim realization:

• As of June 30, 2014 ATHI had 1 MILLION shares issued and outstanding
• As of December 31, 2014, ATHI had 71 MILLION shares issued and outstanding
• As of March 31, 2015 ATHI had 315.3 MILLION shares issued and outstanding

Not only have the company’s shareholders been overburdened with dilution, but there’s no real way to tell how many shares the company currently has outstanding, since as we mentioned earlier, its financials are quite outdated.

What CAN be gleaned from them is the very probable possibility that those 244 million (or 330 million, if you believe the company’s OTC Markets profile) shares outstanding that have been issued as a result of conversion of debt on what the company calls Note 1. The amount of debt ATHI owes on that promissory note has decreased by $68650 quarter over quarter, and although we can’t be sure where all of that dilution came, since the reports are vague and obscure almost to the point of being useless, the veracity of that theory seems more than a bit likely.

In light of that, investors should note well the fact that, as far as due diligence can tall, the last time ATHI reported it had at least $161 thousand payable. If even a tiny fraction of those notes are converted into stock and dumped on the market, the ticker will be in for quite a plunge.

Suffice it to say that the red flags are as many and as varied as they can get – and that’s even if we neglect to cover the inexplicable interest that investors have suddenly taken into ATHI, in spite of the apparent lack of developments surrounding the company.

All in all – ATHI is a very risky play, and investors should be extremely vigilant if they decide to try and make money out of it.