AvWorks Aviation Corp. (OTCMKTS:SPLI) Falls Deeper Down
The aftermath of the suspension of a prominent player on the marijuana market left AvWorks Aviation Corp. (OTCMKTS:SPLI) battered and bruised by the end of last week. Interestingly enough, the company continued its descent to the bottom of the charts, even though the panic that gripped the market seems to have dissipated.
Growlife Inc. (OTCBB:PHOT)’s downfall threw the entire marijuana sector into chaos. The contraction that gripped the market spared no marijuana stock – the wholesale crash affected every company that had anything to do with marijuana. However, while companies like HEMP, INC.(OTCMKTS:HEMP) have already stepped on the road to recovery, SPLI seems to be headed further down the charts – for no obvious reason.
Given the circumstances, the ticker’s fall is perplexing indeed – it’s not like SPLI hasn’t gotten any media coverage pushing it upwards. An announcement from Mr. Dror Svorai, SPLI CEO, declared that SPLI‘s newest, cutting-edge ‘combination’ vaporizer “just amazed people in the business”. The SPLI product was boasted to feature a bluetooth-type high capacity battery, new glass tank and the capability to use e-liquids, dry herbs, or wax with equal ease.
It is true that, Mr. Svorai’s dubious reputation does not do SPLI‘s credibility any favors, but even so, it is odd that yesterday’s optimistic and wordy press release yielded no uplift whatsoever. On the contrary – the company lost 33.15% of its market value, to the bafflement of its supporters.
Perhaps traders finally realized that a market cap of $50 million may not befit a company with an annual revenue of $2 million. It is possible that investors took to heart the worrying statements and numbers in the company’s newly published 10-K for 2013, despite the fact that the filing means very little after SPLI‘s merger into Vapor Group Inc. Another everpresent possibility is that it is the marijuana market’s fickle nature that is currently playing tricks on SPLI stock.
In any case, investors may want to be extra careful when committing to SPLI stock. Even now, scant minutes after the market’s opening, SPLI stock is traded nearly 10% down.
