Olie Inc (OTCBB:OLIE) Skyrockets on Exciting News
The beginning of Olie Inc (OTCBB:OLIE)’s week has been absolutely astonishing. On Monday, the ticker managed to jump by no less than 266% while generating a dollar volume of $154 thousand. As impressive as it is, this run was absolutely nothing compared to the one made yesterday. More than 180 million shares changed hands in just six and a half hours while the price jumped by a staggering 536% meaning that it currently stands at $0.014.
A staggering performance from a ticker that seemed to be forgotten until just a couple of days ago. But what’s the reason for the mighty jump?
The trigger’s certainly nowhere to be found in the company’s latest financial statement. In fact, the balance sheet is horrible enough to scare away even some of the more adventurous investors. Here’s how things stood as of June 30:
- total assets: $127
- total liabilities: $410 thousand
- no revenue since inception
- quarterly net loss: $310 thousand
The fact that the Q3 results are still not out isn’t really helping either, but if it isn’t the SEC filings, then what is causing the massive interest and the incredible run up the charts?
It’s OLIE‘s PR department who have been working overtime recently. The company has made a total of thirteen announcements in a month and a half and, having read through them, we can see that there are certainly some things to get investors excited.
A new three-step corporate plan was put together in November, some non-dilutive convertible preferred shares were authorized, OLIE received investments from other penny stocks like For The Earth Corp (OTCMKTS:FTEG), Hi Score Corp. (OTCMKTS:HSCO) and Telecor Inc (OTCMKTS:TLNUF), an online magazine dedicated to nanocap companies was bought, and they even acquired a business entity that owns some US treasury strips.
The latest press release hit the wire a couple of hours before yesterday’s opening bell and it concerns the aforementioned treasury strips. According to it, OLIE have secured $20 million worth of mid term notes coming from these instruments which, in the company’s words, should raise the stockholders’ value significantly.
Clearly, there’s no shortage of optimism and on the face of it at least, things are looking good. If the pumpers were here, they would probably say: “it’s a no-brainer”. But are things really so simple?
Unfortunately, they aren’t. If you take a look at our previous article which was written seven months ago, you’ll see that back then the talk of the day was the acquisition of a company called EnCanSol which was supposed to bring in a really interesting piece of technology related to the production of batteries. People were just as optimistic as they are now, but apparently, nothing came out of the plan which raises some questions around the current enthusiasm.
It’s also clear from our April coverage that OLIE was the target of a $35 thousand pump, the results of which are now apparent – the share price was demolished. Seven months ago, the ticker was hovering around $1.25 per share while on November 29 it slipped into the triple zero levels. This sort of stock performance certainly warrants some extra caution.
The same goes, by the way, for the company CEO, Mr. Robert Gardner. He was once a Director of Viridis Energy Inc. (OTCMKTS:VDRSF) and it’s clear from this link that the rest of the management team weren’t too happy with him. He is also listed as the CEO of Laredo Resources Corp (OTCMKTS:LRDR) – a company that was the target of a paid pump not that long ago. Needless to say, the results of the promotion are quite catastrophic.
On a side note, the SEC filings from the last couple of months tell us that Mr. Gardner received 2 billion common OLIE shares in exchange for retiring $20 thousand worth of debt. Doing a lot of due diligence and considering all the risks carefully is absolutely essential before putting any money on the line.
