SUTIMCo International Inc (OTCMKTS:SUTI) on an Eye-Watering Run
Nearly $2.8 million worth of SUTIMCo International Inc (OTCMKTS:SUTI) shares changed hands during yesterday’s session. That’s quite a lot for a triple zero penny stock and it’s especially remarkable for a ticker that nobody was interested in a couple of days ago. Then again, there are plenty of people paying attention now and, at least for the time being, SUTI is out of the triple zero levels.
It opened the day with a gap up at $0.0004 but started running towards the higher end of the charts almost immediately. Six and a half hours later, it was sitting at $0.0013. 333% in daily gains is a remarkable performance and we’re quite sure that there are some people who were able to cash in on the run and make some quick and easy money. Looking at the message boards, however, we can see that there’s still plenty of investors holding on to their shares, expecting an even more astonishing performance in the coming days.
Unfortunately, considering the fact that there isn’t any obvious reason for yesterday’s run, a climb in the future remains somewhat questionable. There isn’t a paid promotion currently running for the stock, the latest press release was issued more than three months ago and the last financial report got published in November. SUTI seems to be propelled by nothing more than speculation at the moment which makes a potential investment extremely risky. There are some other problems too.
The management team is not too keen on updating their shareholders regularly, but when they do, they sometimes make promises they can’t keep. On January 2, 2013, for example, they said that they are taking all the necessary steps towards turning the company into a fully SEC reporting entity and claimed that an uplisting to the OTCQB tier will be completed before the end of last year. No SEC filings were published during 2013 and SUTI is still on the Pink tier.
On April 30, 2013 Fred Rogers, the company CEO, said that they are “a key player” in the technology world and that they have positioned themselves to monetize their technology. The balance sheet found in the report covering the third quarter of 2013 doesn’t really support those claims. Instead, it shows that as of September 30, SUTI had:
- $4,950 in cash
- $16,665 in total assets
- $3 million in liabilities
- an accumulated deficit of around $19.1 million
They did end the quarter with a net income, but this was solely due to the fact that they wrote off around $1 million worth of debt.
Speaking of debt, Mr. Rogers told us on December 9 that the management is hard at work cleaning up the balance sheet. He said that they have managed “to negotiate terms that benefited all parties involved“. We’re not quite sure about that last bit.
According to the Q3 report, SUTI issued a whopping 382 million shares during the third quarter of 2013. All of them were valued at $0.0001 a piece and all of them saw the light of day as a conversion of debt. On September 30 they decided to increase the authorized capital from 950 million to 2.5 billion shares and even published a copy of the certificate of amendment filed with Nevada’s Secretary of State. Not surprisingly, the printing press was fired up once again. The “Subsequent Events”section of the report tells us that between September 30 and November 6, SUTI issued a mind-benging 488 million new shares.
The O/S count might be even bigger now. Around 3.4 billion shares changed hands during yesterday’s session and although the daily trading volume can theoretically exceed the float, it’s an extremely rare phenomenon. SUTI haven’t announced any further increases in the authorized capital, but according to http://nvsos.gov they are now allowed to issue up to 4 billion common shares.
Keeping that in mind might not be a bad call while considering your options.
