Baltia Air Lines, Inc. (OTCMKTS:BLTA) Climbs To Unstable Prices
For 4 years now Baltia Air Lines, Inc. (OTCMKTS:BLTA) have been trying to become America’s Newest Airline and it seems that they are finally getting close to it. On October 10 the company moved on to the final Phase III of their FAA Air Carrier Certification. On November 18 their Boeing 747 managed to pass the FAA aircraft conformity requirement while on the very next day came the announcement that the company has completed successfully the Tabletop Exercise, one of the Phase III tests.
The multitude of positive news finally managed to influence the stock of the company and for the past three sessions it has been going nowhere but up. On Friday the stock closed at $0.02 for a gain of 9.5%. Interest in the stock remained significant with 16.2 million shares changing hands, amount bigger than the average for BLTA by more than 3 times. Despite the positive outcome though the stock’s performance was rather hesitant. In the early hours it surged to a high of $0.025 just to fall back down equally as fast. Currently commanding a market cap of over $93 million Baltia might be reaching some quite unstable prices.
Especially if investors decide to take a look at the recently filed quarterly report. It covered the period ending September 30 and showed that back then BLTA had:
• $29 556 cash and total current assets!!!
• $2.7 million total current liabilities
• ZERO revenues
• $5.4 million net loss
Even though the total assets amount to more than $2.6 million they are still not enough to offset the total liabilities of $4.2 million. Investors are hoping that BLTA will pass its certification successfully and this will enable them to finally start generating revenues. If this is truly the case the balance sheet might see some improvement but unfortunately the poor financials are far from the biggest red flag around the company.
No, investors have to also worry about the massive dilution of the common stock. In just a year – between September 2013 and September, this year, BLTA issued approximately 1.7 billion shares bringing the number of outstanding shares to 4.9 billion. The quarterly report revealed that as of November 17 that number had already grown to 5.2 billion. More importantly around 1.45 billion of the issued shares saw the light of day at just $0.005 each.
With the help of some new positive PRs BLTA might be able to keep the momentum going for a while longer. Still, any trades involving the stock should be attempted only after doing your own due diligence. Take into account the heightened volatility and adjust your position accordingly.
In early trading today BLTA is sitting 3% in the green at $0.0225.
