Is This The Peak of Oriens Travel & Hotel Management Corp (OTCMKTS:OTHM)’s Pump
The lack of recent coverage for Oriens Travel & Hotel Management Corp (OTCMKTS:OTHM) has a reason. The reason is simple. There is nothing much happening to their stock recently if you count Friday out. Things seem to be changing, as their stock was one of the hottest in Friday, making a big jump in price and selling in extreme volumes.
The stock of OTHM is one of those, whose price just can’t stay headed in one direction and is making huge moves from day to day in both directions. It is being traded in volumes of millions of shares, but with its price in the double zeros the traded shares rarely make any decent trade value.
Friday’s trade session begs to differ, however. After a long promotional campaign OTHM‘s stock finally jumped up, probably, because the company itself aided the promotional effort with an optimistic press release stating that they are looking at lucrative merger/acquisition options valued at as much as $30 million.
This is probably the reason for their stock’s mind-blowing jump of 242% in price from Friday, which happened on heavy trading with more than 10 times their average of 24 million traded shares. The massive trading began from market open and continued through the day making the total amount of shares that switched hands come at a whopping 276 million generating a trade value of $570 thousand.
The price jumped from $0.0009 to $0.0024 on the highest volume that the company’s stock has had in at least 3 years, but what exactly does OTHM have to back up its market value of $536 thousand. OTHM are reporting according to the Alternative Reporting Standard in the OTC Markets and below we have listed the numbers of prime interest from their report for this year’s Q1.
- cash: $3.6 thousand
- total assets: $4 million
- current liabilities: $2.9 million
- total liabilities: $3.4 million
- net loss: $67 thousand
With those assets you can start thinking that OTHM are a pretty solid company, but you will be wrong. A little over $2 million are in accounts receivable that are there in quite a while from different sorts of companies and websites including Pegasus Gaming Corp (OTCMKTS:PGGG) in which they claim to have invested $1 million (also listed as current assets) in that is currently scrubbing the floor of the charts with a price of $0.0001 from February 29 this year.
If the stock was able to go any lower it would probably have, but in case you think that we are gloating at their failure, just think about what investment decisions OTHM‘s management are making and think if their company’s shares are worth your money. Another bad sign emerges when you look at the people touting OTHM‘s stock. The last two emails were sent by Penny Stock Gainers, yes, the same guys that sent the 2 emails on June 23 and June 24 touting the stock of Trulan Resources Inc (OTCMKTS:TRLR). You can see the result of the pomp for yourself in the chart to the right.
Be sure to do your due diligence and weigh out all of the risks before making an investment decision for the risky stock of OTHM.
