Harmonic Energy, Inc. (PINK:ASUV) Drops Hard
In yesterday’s trading Harmonic Energy, Inc. (PINK:ASUV) dropped another 30%, to lose a total of nearly 50% in two consecutive trading sessions and close at $0.84 per share. What is the story behind the company, though?
Harmonic Energy, Inc. is an enterprise claiming to recycle old tires and use them for producing energy. Before we get to the more interesting stuff from ASUV‘s past, here is a quick look at their financial situation, as per their latest filed report – their 10-K for their fiscal year ended July 2012:
- $56 thousand in cash
- $214 thousand in current liabilities
- ZERO revenues for all of 2011 and 2012
- $241 thousand net loss for 2012
These numbers are both unpleasant to look at and outdated but it’s all the official information investors have at the moment. In late October, the company touted its name being features in an ‘independent’ research report, which gave them a price target of $5.26. This of course helped the price move up a notch but the truth is, the press release touted a report which was neither current, nor independent.
The item in question is a so-called research paper on ASUV compiled by Cohen Independent Research, which was issued during the summer. However, closer inspection will reveal that the report was also paid, and the cash came from none other than ASUV itself. The company paid $11.5 thousand to basically advertise itself in a report it then claimed to be independent and recycled as PR material in late October.
This summer the same Cohen Independent issued a report on Empereal Americas, Inc. (PINK:TEXX), formerly known as AAA Public Adjusting Group, Inc. – an enterprise which is now down to $0.02 per share, 90+% down from the highs at the time of the report of about $0.25. This might give investors some idea of the credibility of Mr. Cohen’s papers. ASUV stock itself was pumped before and the outcome of that is marked on the chart at the top.
ASUV hopped up even higher in price when they released a video on their youtube channel on Dec. 3, which shows a factory and equipment. Of course, the video never shows anything that can prove this is their own plant, except for a still image of the ASUV logo as the video opens and closes. Obviously the confidence boost the video may have given investors is now gone, as the stock crashed hard twice in a row. At its current price, ASUV is an enterprise with a $52.9 million market cap, a figure backed up by little more than unimpressive assets and zero ability to generate revenue in 2011 and 2012.
Topping everything off is the extra bit of information disclosed in a recent 8-K filing, revealing that the company also sees it fit to pay CEO and President Jamie Mann $60 thousand per year for services rendered through his consultancy firm.
Investors are advised to do their own research and check all their information sources as paid advertising is often disguised as valid and independent research.
