Vanity Events Holding, Inc. (OTC:VAEV) Amazes with Volume

At the end of last year, Vanity Events Holding, Inc. (OTC:VAEV) was singled out as defunct, but it seems to be back on volumes as much as 10 times the usual. Our latest record for an email promotional campaign is from October last year, but the whole event happened with extremely low volumes. On Tuesday, 750,000 shares changed hands and lifted the ticker 10 cents, from $1.70 to $1.80, a price achieved only after a 1 for 3,000 reverse split.

The company, sporting a website that promises to one day build an empire of diverse businesses, has to rely on the following financial fundamentals:

• $5,483 cash

• Zero revenues as of September 2012, $35,131 as of September 2011

• $2.6 million net loss

The latest message from the company is the preparation of its new website, Watchlender.com, a luxury watch service offering time pieces for temporary use. The site, currently in a preview mode, should start working in the summer. VAEV also plans to extend the lending model to other luxury items such as electronics, accessories or even fine art.

The next few days may reveal if there is an interested party that caused the volume anomaly. Added to this is the threat of a convertible debenture for $100,000, which at maturity converts to just 10% of the average market price in the past 5 trading days. Given that the debenture matures on March 21st, the sudden interest in the stock may coincide with this possibility to obtain and dump a significant number of underpriced shares.

VAEV is currently capped around $5 million, with 2.9 million shares outstanding. But the SEC filings show that 2.6 million shares were issued to gather funds for purchasing assets, as well as 650,000 shares issued as payment for services. The company has 500 million shares authorized and we may expect dilution in the future. VAEV has traded in a broad range between $5.50 and 50 cents, currently hanging around its middle values.

While our database so far does not include the outright pump for VAEV, there may be promotional
Along with the luxury good swapping sites, VAEV is working on its own energy drink brand, adding a drop in the ocean of moderately priced energy drinks that try to gain a piece of Red Bull’s popularity. Shogun Energy is marketed in the Midwest, but it seems to contribute little to the company’s bottom line.

The next few days may be exciting for VAEV, as the source of sudden investor interest may become clearer. But keep in mind that even the company’s auditors Kabani & Company, Inc. have expressed concerns about the company’s future. With a price around $1.80 and a history of negligible volumes, VAEV is a bet filled with strangeness, with a great potential to drop to much lower levels, reverting again to the double-zeroes before the 1 for 3,000 reverse split last fall. Previous picks of Candlestickpicks.com include Barristas Coffee, Inc. (OTC:BCCI), a ticker that fell 75% after the pumps ended last fall and is now making a dramatic recovery. In the case of stocks sounding too good to be true, it is best to know well how much you could afford to lose when sudden changes in direction happen.