How Long Will Coates International Ltd (OTCMKTS:COTE)’s Climb Last?
Coates International Ltd (OTCMKTS:COTE) managed to turn its slide into a climb on July 24, when its latest vague and optimistic announcement hit the web, and has not had a red session since – but how long will that last?
There is no easy answer to that question, seeing as it is something of a wonder how the ticker hasn’t crashed yet. True, the press release did manage to create some hype and the announcements of COTE‘s business ventures related to the Chinese government sure did attract investor attention, but as we all know, hype jumps rarely last. Why this one managed to endure as long as it has, in spite of all the factors pulling the ticker down is something of a mystery.
And said factors are as many as they are varied. For one, COTE has issued misleading and/or downright wrong press releases on multiple occasions in the past, which makes the the very claims that pushed the ticker upward in the first place suspicious.
Further, no real evidence to support COTE‘s claims to greatness are anywhere to be found. Case in point – the company’s financials were positively horrendous last time it filed a quarterly report:
- Cash – $72 thousand
- Total Current Assets – $190 thousand
- Total Current Liabilities – $7.1 MILLION
- Total Revenues- $5 THOUSAND
- Net Loss – $2.8 million
True, COTE probably finds itself in a better position, now that it has negotiated receiving about $6 million worth of funding annually – but there’s no way to know whether or not that is the case until the company’s next quarterly report hits the web.
Until then, we’re left with filings such as the 8-K announcing the COTE‘s latest toxic funding deals, such as the Vis Vires Group, Inc. note, that has a conversion price of “61% multiplied by the average of the three lowest closing bid prices during the ten trading-day period ending one trading day prior to the date of conversion”.
Unfortunately, such provisions seem to be the norm with COTE – and that fact alone should be enough to make investors wary.
