Swingplane Ventures (OTC:SWVI) Surges, Valuation May Be Off

The fourth day of the pump job on Swingplane Ventures (OTC:SWVI) finished with a 20.26% gain. As with a lot of other pumps, though, traders may be putting the cart before the horse.

SWVI closed at $0.321 per share. This puts the current market cap of the company at about $43.3 million. It should be noted that the number of outstanding shares (OS) at OTCMarkets is wrong. It says 4.725 billion which seems to be taken out of SWVI‘s 10-Q.

After doing the math the right number was 472.5 million, and that was before the cancellation of 337.5 million shares, which has already happened according to the Jan. 23 8-K/A. That gives us 135 million shares OS, with 12.5 million held by Michel Voyer and the rest held by unknown investors who bought in at some point in 2011.

The same 8-K/A shows that after the acquisition is completed there will be another 100 million common shares, and another 5 million preferred shares all held by the shareholders of Mid Americas Corp. For more details look at my first article on SWVI, or at the 8-K/A.

Back to the cart and the horse, traders are currently buying shares of a company which may or may not have anything worth their money. Until the acquisition is completed and a Super 8-K is filed there’s no way to know for sure what SWVI is worth. Even then, there is no guarantee the company will ever reach profitability or produce any copper for that matter.

Still, those who are aware SWVI is an Awesome Penny Stocks (APS) pump job, and treat it as such, got the chance to make a quick buck. Unfortunately it’s still not certain which way SWVI will go. World Moto, Inc. (OTC:FARE) gave some opportunities for a profit, but with Superior Venture Corp (OTC:SVEN) things went all wrong.