Sollensys Corp. (OTC:SOLS) Charts a Rising Trend

A long-forgotten ticker which sprung to life a week ago, Sollensys Corp. (OTC:SOLS), has been making a cautious upward trend in the past few days, rising 50% for a few days. The ticker crashed from its $1 levels at the start of February, but since then has recovered on a series of press releases and valley buying.

SOLS has placed before itself the ambitious task of producing touch screens, yet it has very limited financial resources, as listed in the last filing with the SEC:

• $460 cash

• $149,744 current liabilities

• Zero revenues

• $62,288 net loss

At the end of last week, SOLS added more than 13% in a single day, reaching 62 cents. So far, with low volumes and cautious trading, SOLS is a slow bid, though still priced quite high for a company with few real assets. In practice, SOLS may be the vehicle for the Korean producer of touch screens to trade on the US small cap market, so outside the reports from the American company, we cannot know for sure what financials will fuel the Korean subsidiary, purchased with a new stock issue.

Until August last year, SOLS had an entirely different strategy, trying to sell health solutions under the name Health Directory, Inc. (OTC:HLTD), but this brought it to its current financial situation. It is usual for small cap companies to change business models, even several times, each time attracting anew the attention of investors before the stock crashes.

With a new week opening up, we are yet to see if SOLS would have any deeper corrections. The ticker is not in active promotion, and has not been boosted by new PR messages since February 21st. In any case, it is best to estimate your acceptable potential loss before trying out SOLS for size, since the current trend could change any day.