Could Montalvo Spirits, Inc. (OTCMKTS:TQLA) Rise To Its Previous Prices?
Montalvo Spirits, Inc. (OTCMKTS:TQLA) is a freshly traded company that deals in the business of fine quality spirits, as suggested by its name. They are having a marketing campaign, which unfortunately for some of the more serious investors isn’t only targeted at promoting their products, but also their stock, a practice that we think is probably not one of the best.
After a long period of low volumes of trades for TQLA in which their stock had inconsistent movements it seems like they have found the solution and insiders are finally starting to dump their shares. From the beginning of this month the stock of TQLA is trading well below their average volume of 387 thousand, with only a few days in which the traded shares were above 100 thousand.
The promotional campaign for TQLA was initiated yesterday morning when the first email flew in our inbox. The promotional campaign is an expensive one so we reckon that it will go on for quite a while. Some of the numbers that companies have received as compensation go as big as $380 thousand and some are lower at about $12.5 thousand. Other promoters claim that they have purchased 30 thousand shares that they intend to sell at any time after the distribution of their emails.
This of course means that there is surely some dumping involved which is evident in yesterday’s trade session in which TQLA‘s stock was traded in a massive amount of 1.5 million shares, while in the same time jumping 11% up. The dumping was carried out in the last hours of the trading session in which TQLA‘s stock went from $0.741 to $0.825 and it helped generate a trade value of $1.25 million for the whole day.
Apart from the promising press releases that came out about marketing agreements and sponsorship initiatives there were also some other news. Finally after they notified about their inability to timely file their annual financial report it is a fact and we are able to share the numbers of prime interest that are contained in it.
- cash: $23 thousand
- total assets: $385 thousand
- current liabilities: $394 thousand
- total liabilities: $714 thousand
- annual revenue: $28 thousand
- net loss: $1.6 million
It all seems in the norm for an OTC company, but when you notice that they managed to lift their revenues with only around $3 thousand from December 31 to March 31, going from $25 thousand to $28 thousand, while in the same time increasing their losses with more than $200 thousand it starts to look disturbing. Furthermore, with the recent pump campaign they are making their stock even riskier, so be sure to do your due diligence and weigh out all the risks before you decide to invest in them.
Some of the other companies that are undergoing the pump treatment at the moment are Resource Venture (OTCMKTS:REVI) and Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII), who are being traded at $0.0100 and $0.680 respectively.
