The Stock Of Baltia Air Lines Inc (OTCMKTS:BLTA) Avoids A Severe Correction
Yesterday’s session was a turbulent one for the stock of Baltia Air Lines Inc (OTCMKTS:BLTA). The ticker opened at $0.00695 but in early trading quickly plunged to a low of $0.0055. Still, the stock bounced and ultimately closed the day with a loss of less than 2% at $0.007. It seems that investors are waiting for an official confirmation about BLTA’s latest attempt to pass the mini evacuation test, part of their FAA Air Carrier Certification.
So far the company has made multiple attempts to complete the test but they were all unsuccessful. According to some investors posting on message boards the latest test took place late in the evening on Tuesday. The company has not released any information and with every day that passes investors might start to lose hope once more.
The problem is that even if BLTA manage to move on with the Air Carrier Certification process they would still be surrounded by red some rather serious red flags. The latest financial report showed that at the end of March the company had:
• $118 thousand cash
• $131 thousand total current assets
• $2.9 million total current liabilities
• ZERO revenues
• $2.8 million net loss
The fundamentals of the company simply cannot support the current market cap of more than $36.7 million. However, as we have said on numerous occasions in our articles, a more alarming issue is the crushing dilution of the common stock. After issuing 2.2 BILLION common shares last year as of December 31, 2014, BLTA had 5.5 billion outstanding shares. The problem is that more and more shares are still being printed and as of May 4, 2015, the outstanding shares had almost reached 6 BILLION. If the issuance of shares doesn’t slow down BLTA might run out of room despite it recently increasing its authorized amount to 6,986,000,000 shares.
If BLTA has once again failed the mini evac test the effect on their stock could be devastating. On the other hand even if the company aced the test the numerous red flags will still be there. Use caution and plan your trades carefully.
