Pumpers Fail to Inflate ABT Mining Co. Inc. (OTCMKTS:ABOT)
ABT Mining Co. Inc. (OTCMKTS:ABOT) had a pretty uneventful session on Tuesday. Only 56 trades were executed and after a somewhat modest 7% hike, the ticker stopped at $0.70 per share. Apparently, certain third parties decided that the stock is in desperate need of some action.
The third parties in question contacted Stellar Media Group LLC (the owners of Damn Good Penny Picks as well as a few other pump newsletters), paid $15 thousand, and requested a promotional campaign for ABOT. The pumpers were only too happy to oblige. A total of seven emails hit our inbox after Tuesday’s closing bell and they all talked about how ABOT “is about to soar”.
As it turned out, ABOT wasn’t about to soar. Instead, it lost 14% of its value during yesterday’s session and it is now sitting at $0.60 per share. As you might have guessed already, we’ll now look into the reasons for the underwhelming performance.
They’re not that difficult to find. In fact, after just a few minutes worth of research, you’ll see that ABOT isn’t in such a great shape.
The company headquarters, for example, appears to be located in a virtual office. As for the latest financial report, we should probably let the figures do the talking. Bear in mind that they are not in thousands:
- current assets: $41
- current liabilities: $1,385,263
- NO revenue since inception
- quarterly net loss: $1,132,807
Even the press releases don’t sound particularly convincing. The latest announcement, for example, came out on Tuesday (you can draw your own conclusions about the timing) and at first glance, it looks rather nice. It says that ABOT have retired about $320 thousand worth of debt.
A closer look, however, raises some eyebrows. The PR never mentioned whether the company has eliminated the notes with cash or whether it has done it with the issuance of shares. And that’s an interesting and important question in case you’re contemplating a potential investment.
Up until three months ago, ABOT‘s O/S count was sitting at just over 1 billion and its price was hovering around $0.0005 per share. On May 19, the management team effected a 1 for 2,300 reverse split which pushed the price up and reduced the number of issued and outstanding shares to less than 500 thousand.
A few days later, 150 million shares were issued to Shahan Ohanessian in exchange for the intellectual property related to the AutoClaim mobile application which is still in development. The current O/S count sits at just under 152.5 million which means that 2 million shares are missing from the equation.
These were issued in June as a satisfaction of debt at a rate of $0.0005 per share.
