Swingplane Ventures, Inc. (OTC:SWVI) Misses Expected Date

According to the filings of Swingplane Ventures, Inc. (OTC:SWVI) the transaction for the acquisition of Mid Americas Corp. was supposed to be closed yesterday. There was no filing, nor was there an announcement.

For a while it seemed this would be enough to take down this pump, and SWVI traded as low as $0.29 per share, but then it rebounded and managed to close up 4.99% at $0.379 per share after 20.3 million shares had changed hands.

There are a number of details traders should keep in mind when looking at SWVI. Firstly, it’s an Awesome Penny Stocks (APS) pump. This alone should speak volumes to traders who aren’t new to the OTC and Pink stocks.

Secondly, until the transaction for the acquisition is closed, all SWVI has is about $160 thousand in cash which isn’t even enough to cover their current liabilities.

Thirdly, there is very little information about Mid Americas Crop. The information that is available shows that the company hasn’t yet earned the option, operations on the property haven’t started, and the company will have to pay millions before it gets to that point.

Despite all the unknowns, traders seemed willing to pay the inflated price for SWVI shares. For the most part, this was probably due to the pump emails which claim SWVI can go to $1 or $2 per share.

Although unlikely, if there are some traders looking at SWVI who aren’t familiar with APS and its history, they should really consider the fact that none of the previous pumps have ever reached the high price levels from the time when they were pumped.

As a matter of fact, most of them are down more than 90% from the pump highs. TagLikeMe Corp (PINK:TAGG) is one relatively recent example.

That being said, most APS pumps get runs that last several days before they crash hard. SWVI may have some fight left in it yet. Press Releases, filings and pumps can all contribute to a short-term spike.