Big Changes Are in Store for Cleantech Transit, Inc. (OTCMKTS:CLNO)
This month has been one of the best for the stock of Cleantech Transit, Inc. (OTCMKTS:CLNO). They have added more than 850% to their value in just three weeks with only two negative sessions. Yesterday CLNO continued moving upwards by another 6% and closed at $0.17. The company hasn’t been able to revisit such heights in the last two years.
It is no secret that CLNO‘s investors haven’t had much reasons to be optimistic about the company. They first began operations under the name Patterson Brooke Resources Inc. with the intention to acquire and develop mineral resources properties. Unfortunately as so many other pennystocks they failed to secure any suitable drilling targets and in 2010 changed both their name and business plan. They became Cleantech Transit and decided to create hybrid, electric and alternative fuel buses. Once again this remained nothing more than wishful thinking evidenced by their latest quarterly report:
- $586 total assets
- $175 thousand total current liabilities
- no revenues since inception
- $260 thousand net loss
The only thing they have left from the previous years of being in business is an accumulated deficit of $2.9 million.
Things, however, may finally turn for the better. Or at least CLNO‘s investors hope so due to the recent acquisition of Discovery Carbon Environmental Securities Corporation. Discovery are also a green tech company that through their products is helping companies offset or neutralize their CO2 emissions. How much will this deal improve the fundamentals of CLNO will become certain with the next financial report.
But some other facts are already causing concerns. As part of the deal CLNO will increase their authorized shares form 600 million to 5 billion, which is a rather drastic change. They will be required to implement a 1 for 5 forward stock split, which will be their third one after the 25-for-1 in 2008 and the 3-for-1 from 2010. Also for the third time the company will be changing their name, this time to EQCO2 in order to suit the current activities.
For now investors should be careful because the current price of CLNO‘s stock is heavily overpriced. On top of that pumpers have began latching themselves onto the stock. They are just trying to improve their image and haven’t received any compensation but that can change quite quickly in the pennystock market
Another company that moved disproportionately to its fundamentals was Biozoom, Inc. (OTCBB:BIZM). Yesterday they got suspended by SEC after a truly massive promotional campaign leaving a lot of investors desperately trying recover their losses. Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) also made a comeback thanks to the renewed promotion by Victory Mark.
