ATWEC TECHS INC (PINK:ATWT) are Hot Shot Stocks’ Top Runner
Since we have to deal with so many companies that apparently rely on nothing more than grandiose headlines and paid promotions to get somewhere, we tend to forget that there are small businesses out there that are really trying to make a difference. The thing is that more often than not, they don’t quite live up to their founders’ expectations. This seems to be the case with ATWEC TECHS INC (PINK:ATWT).
We did receive an email about ATWT stating that, the stock is ready to explode and bring as much as 200% profit. We would be happy if this happens, but we somehow have a hard time seeing it. The two questions are: “Why would we be happy to see them rise up from the bottom?” and “Why do we doubt that they will?”.
The answer to the first one is quite simple: they have dedicated time and effort to a noble cause. What they do is devise all sorts of systems that are designed to make our children’s trip to school or kindergarten just a little bit safer. They have a device that produces a sharp sound when a bus or a van is backing up, in order to prevent accidental backovers. And they also have a device that makes careless school bus drivers check if there aren’t any children left in the bus at the end of the day.
The answer to the second question is a bit more complex. Unlike other companies that are only good at making bright claims for the future, ATWT have actually been operating for some time now. They have a factory and they are also registering some sales. The thing is, we’re not sure if they will be enough. For one, at the beginning of 2012, ATWT‘s CEO stated that he expects to have $2.5 million in sales by the end of the year. The financial report that covers the first three quarters of 2012 says that the total revenue generated from sales was $124 thousand. We don’t know what has happened since September 30, but we doubt that they even got near to the benchmark. Even if they did, there is still the question of the operating expenses. For example, for the first nine months of 2012, they registered a net loss of $12,899, which is hardly encouraging.
Looking at the rest of the statement, you might be fooled into thinking that they are rather well-off, but if you look closely, you will see that their assets consist mainly of goodwill and intellectual property. We have broken down the numbers for you:
- cash: $1,020
- goodwill: $2.5 million
- intellectual property: $1.5 million
- total assets: $4.2 million
- total liabilities: $1.99 million
It’s no wonder that with so little money in the bank they are forced to work in an office such as the one that you see in the picture on the right. Having all that in mind it’s difficult to see why would Hot Shot Stocks (HSS) would want to promote ATWT‘s shares.
That’s not much of a criterion, however. We have seen HSS do similar things with other companies in the past, and the result have always failed to impress. We received some advertisements for Safecode Drug Technologies Corp (OTC:SAFC), for example, back in November. The chart shows that the difference in the price since then is a whopping 82%.
At the best of times we would say that it would be wise if you wait for ATWT‘s yearly report before making a move. The fact that someone is paying to have ATWT pumped is disturbing us.
