AvWorks Aviation Corp. (OTCMKTS:SPLI) Surges to New 52-week High
The stock of AvWorks Aviation Corp. (OTCMKTS:SPLI) continued to gather momentum and since the start of March has climbed from around 6 cents to more than 20.Yesterday it posted another amazing session that saw the company add another 41% to its value and close the day at $0.33, which was also the intraday high.
If you have not read anything about the recent developments around the company don’t let their name fool you, it is a remnant from their previous business that not only failed to go as well as planned but at the end of September left the company in a dire financial state:
- -$462 cash (that is right, SPLI reported negative cash)
- $ 4.5 thousand total current assets
- $282 thousand total current liabilities
- Zero revenues
- $21 thousand net loss
With results such as these it shouldn’t be a surprise that the company decided to look for other business opportunities and on January 22 merged with Vapor Group, Inc, a Florida corporation. With this they entered into the booming e-cig industry and the market reacted immediately. On the day of the announcement SPLI jumped by 444% while traded volume amounted to 31 million shares, nearly 15 times higher than the previous session.
Since then the company is moving at breakneck speed announcing the acquisition of an online reseller of e-cigarette products and accessories while last Wednesday they revealed a new herb vaporization product has been developed and should be launched soon. Another positive news for most shareholders was the decision to cancel the 30-for-1 reverse split which was part of the initial merger agreement.
The annual report for the company should be filed by the end of the month but it will still be covering the previous business. Investors will have to wait for the report covering the first quarter of 2014 in order to see what the current results are. Until then it is for the best to carefully consider all the risks and do you own due diligence before committing to any trades. In early trading today SPLI plunged downwards and at the moment is 11% in the red at $0.295.
Another pennystock involved in the e-cig industry is American Heritage International Inc (OTCBB:AHII). They are also forming an impressive chart pattern climbing form 60 cents to $1.48 in close to four months but recently the stock has been boosted by a multy-million paid pump. A landing page was created, pump newsletters hired and as of yesterday even a hard mailer has been put into circulation. The SEC has suspended quite a few big-budget promotions in the past months so anyone trading with the stock of AHII should be extremely careful.
