COASTAL INTGRTD SVCS (OTCMKTS:COLV) Resurfaces Above Its Pre-pump Price
After posting another impressive performance and surging over 37% up the chart during yesterday’s trading the stock of Coastal Intgrdt Svcs (OTCMKTS:COLV) managed to recover all of its losses from the start of the week. Not only that but the ticker actually finished yesterday’s session at $0.1045 which is slightly above the price of $0.10 commanded by the stock before StockTips launched their paid pump on Monday.
Despite the impressive recovery from the last two sessions it may still not be enough. All those who believed StockTips and as a result rushed towards the stock right after the opening bell on Monday when COLV reached a high of $0.14 may still not be able to recoup their losses. Not to mention that for the past two days StockTips have not been supporting their pick with the last email alert coming in the morning on June 2.
With a disclosed budget of $4.5 million, or at least that is the sum expected to be received as a production budget by the paying party, Laluna Services, Inc., the pump could continue for a while, especially since the stock has now moved back to its initial price.
The problem is that the red flags run far deeper than the paid promotion. Despite the potential of their Simply Lids so far COLV have not been able to achieve any meaningful results. In fact, the latest financial report showed exactly how dire COLV’s financial state really is. The company finished the first three months of the year with:
• $794 cash and total assets !!!
• $256 thousand total current liabilities
• ZERO revenue
• $19 thousand net loss
Back in April COLV did issue two encouraging PRs announcing the signing of a non-disclosure agreement with Havi Global Solutions. Havi apparently requested Simply Lids to quote pricing for the supply 2.5 billion lids annually. Since then however the company has been silent and not a single press release has been published.
In order to move forward with its business COLV will need to acquire a significant amount of funds which may force them to once again take on convertible debt. Last year the company had to issue more than 52 million shares priced at $0.001 as a conversion of notes. With the increased interest towards the stock created by the paid pump the owners of these shares could dump them on the open market and walk away with massive profits.
In addition to the extremely serious red flags investors should also take into account that prior to the start of the StockTips pump COLV were extremely thinly traded and oftentimes registered sessions with exactly ZERO traded shares.
