Montalvo Spirits, Inc. (OTCBB:TQLA) At $1 Again on PR Activity
While the promotional emails for Montalvo Spirits, Inc. (OTCMKTS:TQLA) are a bit behind, the company has hit investors with a new press release, this time hiring a high-end marketing company. This is just one of the series of press releases for TQLA mentioning the great potential to spread the range of high-end tequila to a wider market. 
TQLA announced it had an agreement with Elite Agave Marketing, LLC, to gain access and sales in the state of Florida. The company also participated in the Ultimate Spirits Challenge 2013, reaching the finalists’ rank. The whole summer may be quite promising for TQLA, especially if every little step to success is sent away to investors through well-visited business sites. 
Still, the graph shows that TQLA is a relatively conservative ticker, playing on this and that side of the $1 level. On Monday, TQLA added a small 3.63% to a price of exactly a dollar, on volumes a bit below $1 million. So far, TQLA looks stable enough, and its climb at the start of trading was not too hot- from 75 cents to a dollar, over two months. During that time, TQLA has shown a tendency to correct, but ended up with the higher price. Given that the pumps for TQLA were small-scale, with a budget of $12,500 for a few emails, there is little danger of disproportionate inflation.
Financially, it is still unclear where the distribution will take the alcohol company- the results are from the previous OTC entity, one that dealt with cloud computing:
- $1,700 cash
- $421,454 total assets
- $351,254 total current liabilities
An alcoholic beverage company could make money, although we are yet to see how burdened with debt TQLA is, and if it holds any convertible instruments that could cause stock dilution and insider selling.
An example opposite of TQLA is what happens to a company when the pump is much bigger than the underlying business. In the case of Lot 78, Inc. (OTCMKTS:LOTED) the stock jumped more than 20 times, before crashing by 75%. Another active ticker around the dollar level at this moment is Northumberland Resources, Inc. (OTCMKTS:NHUR), a gas and oil explorer, which corrected from nearly $1.80.
In any case, it is best to do your own research and stay away from promoted tickers unless you are able to afford behavior that is not immediately predictable from the company’s underlying business.
