Montalvo Spirits, Inc. (OTCBB:TQLA) Extends the Slide, Down 7%
Despite the good future promises, Montalvo Spirits, Inc. (OTCBB:TQLA) seems incapable of recovering, sliding down a further 7% to 83 cents. The ticker could not stand comfortably above a dollar, and the effect of the various paid promotions is fizzling out. The Andrew Carpenter analysis and the low-compensation emails from other pumpers could only do so much for TQLA, hardly taking it to a great height. 
The ticker has been on a losing streak in the past few days, with the $1 level a big attractor. TQLA showed rapid movement in response to promotional emails, but with the lack of prompts volumes drop almost immediately, dragging down the price.
The tequila company has not come up with new press releases, and at this stage the company has little to say, except that it expands to more shelf space and more representation in specialized tasting events. We still don’t know how the alcohol sales have affected the company’s bottom line. The previous OTC company tried to make it through cloud computing, achieving the following financial results:
- $1,700 cash
- $421,454 total assets
- $351,254 total current liabilities
The weakening of the promotional effect is a serious challenge for most penny stocks. TQLA in the last few days recalls the movements of another recently popular ticker, Lot 78, Inc. (OTCMKTS:LOTED). This stock boomed from a dollar to a pre-split height of $23,50, before making a 4-for-1 share exchange. Now, LOTED slid more than 29% to $0.36, virtually returning to its pre-promotional levels. LOTED also relied on a mix of paper mailers and press releases for widespread marketing activities. Still, those news don’t guarantee strong sales, and LOTED quickly fizzled out, with modest financial results.
TQLA has yet to prove its much-hyped products will sell well. In the meantime, the company may attract some valley buying, as it gets closer to the pre-promotional price. But at that price, TQLA has many competitors among penny stock picks, some of them stronger climbers in the most active part of a promotion. Petrosonic Energy, Inc. (OTCMKTS:PSON) may be one of the tickers around 80 cents offering the potential for returns.
The trading week nearing a close, TQLA will have to show how it survives another weekend. Already nearly a third down from its heights, the company could take up either direction. The Andrew Carpenter involvement now is more of a red flag and a liability, rather than a bullish factor. It is best to estimate your own acceptable losses before taking up TQLA.
