HARVEY WESTBURY CORP (OTCMKTS:HVYW) Stock Rises on Pump
There has been a lot of touting of Harvey Westbury Corp. (OTCMKTS:HVYW) lately and it has produced the wanted results. After being as low as $0.0051 on April 22 HVYW opened at $0.0083 today, but is beginning to fall under the high volume.
The upward movement on April 26 was a sign for insiders to launch a pump campaign. On the April 26 trade session the stock started at $0.0060 compared to $0.0050 the previous day and ended at $0.0070.
It looks like this was the awaited sign for the pump campaign that started yesterday. Today the results are at hand. The volume of 8 million shares traded so far speaks for itself. And it’s saying that the ones that paid for the pump effort are dumping like crazy.
Let’s take a look at the financial state of the company to see what actually all these investors are buying apart from today. Keep in mind also that HVYW is not a regular SEC filer and is reporting under the Alternative Reporting Standard in OTC Markets. The numbers of prime interest from their last annual report covering the period ended December 31, 2012 are listed below.
cash: $2.6 thousand
current liabilities: $1.7 million
revenue: $118 thousand
operating expenses: $251 thousand
net loss: $273 thousand
Well, at least you can see they are making some sales. The disturbing thing, however, is the manner in which HVYW manage their money. In particular the fact that out of the $251 thousand operating expenses $120 thousand were for the salaries of the company President and the CEO who each received $60 thousand in compensation. This is disturbing because Mr Eugene Chiaramonte, Jr. And Mr. Eugene Chiaramonte III received an amount of compensation that is bigger than the company revenue.
The other thing that smells fishy are their press releases. In the latest one from this morning they are speaking of the early success of their video marketing campaign. Now let’s see some of the facts about that ad campaign they are speaking of in the press release.
They are trying to tell us that they have an ad that has had great success in just one month after they put out the video through AdWords. The fact is that the video is from 2005, has music like a 1980’s commercial and has around 2800 views on YouTube.
We can’t imagine how this home made ad that literally has no idea behind it will lead to a boom in sales. We are saying “home made” because we can’t imagine anyone paying a director for this kind of ad.
With all that in mind we can conclude that HVYW is a company that is yet to prove itself as being profitable. Before buying their stock make sure to do your due diligence and decide for yourself if you want to put in your hard earned money for the salaries of the company’s directors.
