Aqua Power Systems Inc (OTCBB:APSI) Plunges to a New 52-week Low

About a week ago, a landing page appeared in which a man who has been paid $30 thousand for his optimism tells you that Aqua Power Systems Inc (OTCBB:APSI) is “the single best stock” you can invest in at the moment. He also tells you that if you act now, you can double, triple, or even quadruple your money and he suggest that you should “grab shares with both hands”.

Once you take a look at the volumes, you’ll see that there are people who have listened to the advice of a man who doesn’t deem it necessary to identify himself. Surprisingly or not, these people are probably not ecstatic at the moment. Instead of pushing the price in the right direction, the pump actually punched APSI to the ground.

Red sessions have been predominant since the beginning of the promotion and the drop seems to be getting steeper. Yesterday, for example, APSI lost nearly a third of its value and after logging a 52-week low of $0.40 per share, it stopped at $0.46 (almost 40% below the pre-pump value). Some of you might be confused, not just because of the fact that the pump is not working, but because of a few other factors.

Indeed, the latest 10-Q is quite underwhelming (putting it mildly), but it covers the period ended June 30 which means that the figures in it don’t include the results of the brand new subsidiary which is working on the clever electricity generation technology. The subsidiary in question informed us recently that it has recorded nearly $200 thousand in revenues during its most recent fiscal year and it said that with new products in the pipeline, it stands a good chance of increasing its sales significantly.

As you might have guessed already, there’s a new management team as well. APSI is now headed by a person called Tadashi Ishikawa and one of the first things he did after taking the helm was to cancel some of his common shares in an attempt to make the share structure more appealing to investors. More specifically, he retired 105,863,935 shares which means that APSI‘s current O/S count sits at 59,066,942. Mr. Ishikawa then talked about the patents that the company owns, about the potential of selling the products online, and about the future distribution channels.

All in all, at first glance at least, you’ll see absolutely nothing that could be pushing the price down. And yet, APSI is plummeting which means that we have to take a closer look. The shares structure is not a bad place to start.

As we mentioned already, there should be exactly 59,066,942 shares issued and outstanding at the moment. After returning a large portion of his holdings to the treasury, Mr. Ishikawa was left with 32,942,624 shares which means that there should be 26,124,318 shares floating around retail investors like you. Who holds these shares?

We’ve no way of knowing for sure. What we do know is that in 2012, APSI was called NC Solar Inc and that it was trying to go public. We know that as a part of going public, some shareholders agreed to sell 1,451,318 shares at a price of $0.15 apiece or a grand total of $217,703. Last but not least, we know that after the 18 for 1 forward split from last year, the 1,451,318 shares offered to the public were transformed into… yes, you guessed it, 26,124,318 shares of common stock.

Drawing your own conclusions should be pretty high on your agenda right now.