Aqua Power Systems Inc. (OTCBB:APSI) Gets Smashed
After yet more months of inactivity, Aqua Power Systems Inc. (OTCBB:APSI) was once more pushed into a corner by a burst of selling at the very end of yesterday’s session.
Little has changed about this particular company since we last covered it. One look at its latest financial report is enough to confirm that the company is still as unimpressive as ever:
- Cash – $51 thousand
- Total Current Assets – $626 thousand
- Total Liabilities – $222 thousand
- Revenue – $354 NUMBER NOT IN THOUSANDS
- Net Loss – $175 thousand
Sure, APSI has managed to procure some assets and its cash on hand has technically increased – but its mediocrity is still staggering. However, it is unlikely that said mediocrity suddenly shocked investors into awareness and caused yesterday’s crash. The company even published an optimistic press release at that time, in order to reassure investors. So what did drag it down the charts?
Well, as with most movements of dubious OTC Markets tickers, it is difficult to say for certain, but “dumping of toxic convertibles on the market” would probably be a good guess here. After all, the company’s report mentions details of APSI having a total of 24 different convertible notes outstanding notes at the time of its filing. The aggregate of debt on said notes exceeded $700 THOUSAND – and all the notes had conversion provisions to turn into stock at $0.20 per share.
Need we say more about APSI? Its stock is close to illiquid at most times, its financial standing looks far from firm, and the threat of toxic dilution ever looms over it. Investors should take all these facts into account and act accordingly.
