Montalvo Spirits Inc f/k/a Advanced Cloud Systems Inc (OTCBB:TQLA)’s Business Plan
Montalvo Spirits Inc f/k/a Advanced Cloud Systems Inc (OTCBB:TQLA) is one of the freshest tickers in the OTC Markets at the moment, but it seems they are having a hard time lifting themselves above the $1 mark.
TQLA did good in yesterday’s trade session and it managed to make a small jump of 5% from their previous close of $0.875 finishing at $0.92 at yesterday’s close. They registered a record volume of over 637 thousand shares that switched hands, which is the highest the company has had in its brief history of trading in the OTC Markets.
Today, however things are making a turn for the worse after their seemingly positive start. TQLA‘s stock opened a bit higher from yesterday’s close of $0.92 at $0.924, reached a high of $0.925 and then started to slide down. Right now they are exactly at $0.90, or 2.17% down from yesterday.
Unlike Far East Energy Corp (OTCMKTS:FEEC) which we covered earlier today, TQLA‘s stock isn’t relying solely on the company’s resources and press releases in the game of drawing investor attention. The insiders are using another method, which we tend to dislike. Of course, we are speaking about the paid promoters and their pump emails filled mainly with “imagination”.
The promotional campaign started yesterday morning, right before market open, but emails touting TQLA‘s stock kept coming in even after market close. That, however, seems to be insufficient as their stock started going down today, probably because of insiders who are trying to dump as much stock as they are able to, agreeing to sell at lower prices.
We can undoubtedly expect dumping in big proportions in the paid promotions for TQLA. Insiders at the moment own a lot of stock and with the current average volume of 190 thousand shares we reckon that it will take them a while until they dump as much as they would like. This in term means that this could be just the beginning of the paid promotion for TQLA as we know the insiders have between 7.6 and 28 million shares that can potentially be dumped in the streets.
Let’s take a quick moment to see how they are doing on the financial side of things as seen from their report covering the quarterly period ended December 31, 2012.
- cash: $1.7 thousand
- total assets: $420 thousand (mainly in inventories)
- current liabilities: $351 thousand
- total liabilities: $675 thousand
- revenue: $9 thousand
- net loss: $1.2 million
It’s not quite rosy, especially when you take a look at the $1.2 million in net loss. In the report there is also data about the nine months that ended on December 31, 2012 and we can see that they managed to have a net loss of $1.4 for the whole period while $1.2 million from that amount were generated in just 3 months. This is due to the fact that they don’t have any money and they have made stock compensations amounting to above $1.1 million
All in all TQLA is a risky investment choice, so be sure to do your due diligence before you decide if you are going to invest in them.
Another company who suffered from the high volume of traded stock yesterday that we covered earlier is Yappn Corp. (OTCBB:YPPN) as they dropped 11% in yesterday’s trade session closing at $0.28 with total volume of over 5 million shares that switched hands.
