Olie Inc (OTCBB:OLIE) Slips, Promotions Begin
After the astonishing run from Monday and Tuesday, Olie Inc (OTCBB:OLIE) had a less fortunate session yesterday when around 30 % of the value got incinerated. More than 160 million shares changed hands resulting in a dollar volume of a mind bending $2.14 million. The ticker is back below the $0.01 per share mark and it’s clear that someone has to do something about it.
Sure enough, we have some news. A press release came out earlier today and we have to say that it’s quite different from the ones we’re used to seeing from small cap companies.
Apparently, OLIE are preparing a Letter of Intent regarding the acquisition of Hi Score Corp. (OTCMKTS:HSCO). That’s right, if everything goes according to plan, OLIE will actually buy themselves a publicly traded enterprise. As Mr. Gardner, the company CEO says, these sort of deals rarely happen in the micro cap world, but he also says that once it gets completed, it will have a massively positive effect on the shareholders.
It’s still anyone’s guess if it will actually happen, though. As the press release says, the two companies are in the final stages of the completion of the Letter of Intent. Even if they sign it, things could still go wrong.
But let’s assume that everything does go according to plan and HSCO actually becomes apart of OLIE‘s portfolio. How much will OLIE‘s shareholders benefit from the whole thing?
Mr. Gardner talks about some complicated financial instruments and about $5 million in mid-term notes while HSCO‘s CEO, William White describes the huge steps that he has taken an attempt to improve Hi Score’s balance sheet. At the end of the day, however, all we have to work with is HSCO‘s latest financial statement and we have to say that it looks terrible. As of September 30, OLIE‘s future subsidiary had around $6 thousand in the bank, $948 thousand in liabilities and a quarterly revenue of just $3,850 (a 77% decrease year-over-year). With those financials in mind, HSCO‘s price, which, at yesterday’s close stands at $0.0003, is not that surprising.
Yet another interesting thing is to be found in HSCO‘s press releases from the last couple of months. There’s been quite a lot of PR action recently and if you take a closer look at the announcements, you’ll see that HSCO and OLIE have been doing business with pretty much the same enterprises over the last couple of weeks. Coincidence? We’ll let you decide.
Another peculiar thing about OLIE‘s acquisition target is the promotional history. HSCO has been the target of numerous pumps in the past and the longer term chart shows that the ticker simply isn’t resilient enough to withstand the pressure.
Speaking of which, the positive press release is, apparently, a good enough reason for a pump for OLIE. VIP Stock Reports and their affiliated newsletters expect to receive $50 thousand and, in exchange, they are calling OLIE “a lifetime opportunity“. It’s up to you to decide whether they are right or not, but at the moment at least, there is little in terms of cold hard facts to suggest that the company is indeed in for a huge success.
That’s why, doing a lot of due diligence and carefully considering the risks is absolutely essential before putting any money on the line.
