Montalvo Spirits, Inc. (OTCBB:TQLA): Andrew Carpenter Campaign Loses Effect
Yet another time, Montalvo Spirits, Inc. (OTCBB:TQLA) is repeating a pattern of ups and downs. On Tuesday, the ticker slid down 7% to stand at 93 cents, on volumes of $818,000. This happened just a day after a new press release, showing that for TQLA, new information sparks a buying spree, but the ticker is not secure enough to shoot far above $1, not without a continuing promotion. 
TQLA is currently past its promotional days, which were quite brief. In the future, a pumper may take up the stock, but so far the company mostly relies on press releases detailing its increasing market distribution. But one of its shadier promotions is more worrying- an official-looking analysis by Andrew Carpenter. This pumper has a long history of dubious stock selections, and his name caused jitters among investors when commenting on TQLA.
The name of this pumper does not match well with the otherwise promising image of the company. The promotion apparently started on May 20th, and its effect may have fizzled out already, but this is a big red flag for TQLA. The budget for this mention was $380,000, much higher than the $12,500 for a few emailed promotions.
This turns TQLA into a more ominous pick, not unlike Lot 78, Inc. (OTCMKTS:LOTED), an overhyped fashion company that played up each distribution success. But LOTED was more responsive, jumping 20 times before crashing down. Luckily, TQLA is a bit calmer, for now. LOTED had a bit of luck lately, adding 15% on medium-volume buying to stand at 51 cents.
The recent lows for the stock were around 75 cents, so the mailers had only a limited effect. Another previous pick of Andrew Carpenter, Coyote Resources, Inc. (OTCMKTS:COYR) was held up to $2.50, only to slide quickly to lows of 5 cents.
The pumpers hardly mention the outdated reports of TQLA, which belong to the previous company used as a vehicle for access to the OTC markets. TQLA‘s latest reports reveal:
- $1,700 cash
- $421,454 total assets
- $351,254 total current liabilities
Given that the ticker may behave as a pump and dump operation, the numbers are not so relevant. Still, it would be curious to see how this artisanal and high-end tequila maker manages its more recent quarters.
In the case of TQLA, anything is possible, and it is best to stay away unless you do your own due diligence and can afford to absorb the losses.
