AVT, Inc. (OTCMKTS:AVTC) On Its Way Down
AVT, Inc. (OTCMKTS:AVTC) is yet another company that jumped high on the Colorado marijuana hype – am amazing 333% in the span of just two sessions. The rapid growth was not to last, however – now they’re heading down, hard.
AVTC stock was almost dead on the market prior to Jan 7. Then the company suddenly exploded into life when it became clear that they can get in on the marijuana fever that has been shaking the market for the last three weeks.
But how does a company that specializes in the design and manufacture of vending and product dispensing systems relate to the weed rush? Well, about an hour before the Jan. 7 session, Medbox, Inc. (OTCMKTS:MDBX) announced that AVTC had been instrumental in the research and development for modifications and improvements to the existing vending platform. Vincent Mehdizadeh, COO of Medbox Inc. stressed that AVTC‘s work “would aid in the safety and security of the marijuana products”.
MDBX started crashing the next session, and AVTC followed the day after. AVTC lost 15.8%, then another 24.70% on the very next day. Neither hopeful commentary from the CEO, nor the news of a consulting agreement with StoryCorp Consulting, Inc. got share prices up and running again.
A plausible reason for the drop, aside from the ever possible random fluctuation of the hectic marijuana market, is the fact that the vending machine project is still in its initial stage, and its future is unclear. Creating and implementing the technology needed, as well as successfully marketing it is going to require some time and substantial investments.
As it is now, the company seems to be hanging on, but in no way flourishing. Its latest report is for the period ended Jun. 30, 2013 and although it shows improvements in their total current assets and accounts receivable, AVTC didn’t manage to turn a profit. The report itself is somewhat sloppy, which could also put off some potential investors.
Another company that shot up in the heat of the marijuana hype is Cannabis Science Inc, (OTCMKTS:CBIS), who also fell more than 20% on Friday.
