Vista International Technologies, Inc. (OTCMKTS:VVIT) Moving Up
Yesterday’s trading session saw Vista International Technologies, Inc. (OTCMKTS:VVIT) gain as much as 25% and the trading volume broke through the roof. What caused it? Well, it could be the email that OTCMagic sent out after the end of Tuesday’s session or it could be the positive news that we have seen from VVIT in recent days. Most likely, it’s a combination of both. Do VVIT‘s shares really deserve that much attention, though?
As we wrote in our previous article on them, VVIT are not your typical penny stock company. Unlike most of the ventures we deal with, they have working operations, processing facilities and, dare we say it, a rather interesting story.
They have been around for quite a while and they have developed a piece of technology that is supposed to turn waste into energy, thus reducing our environmental impact. They have been somewhat successful with the Thermal Gasifier in the past and the machine is now in its third generation. According to their latest annual report for the fiscal 2012, they expect that it will be the primary source of revenue in the future. What’s even better, on March 25, they announced that they are starting work on a new project which will incorporate the newest Thermal Gasifiers.
In the meantime, they have a processing plant in Texas which is used to convert tires into fuel and for the last couple of years, it’s been VVIT‘s sole source of revenue. And it seems to be doing rather well. We see a steady growth in the proceeds from it year-over-year and according to one of the latest press releases, the first quarter of 2013 has exceeded all expectations.
Financial situation? Well, it’s not perfect but, as we mentioned, the revenues are increasing with every quarter and the losses are shrinking which would suggest that they are working on streamlining the manufacturing process. Additionally, they announced recently that they are about to secure financing amounting to $6 million which, if completed, will definitely help.
The most recent figures are dated December 31, 2012 and here’s a quick summary of the most important ones:
- cash: $16 thousand
- current assets: $44 thousand
- current liabilities: $4.9 million
- yearly revenue: $683 thousand
- yearly net loss: $351 thousand
All in all, VVIT appear to be a company with potential, an interesting piece of technology and, most importantly, operational progress. So why, you’re wondering, are they stuck at just $0.15 per share even after yesterday’s run?
Well, OTCMagic tell us that it’s because nobody has ever heard of VVIT, but that’s not strictly true. The last time we wrote about them, there was a heavy promotional effort and we received over 40 emails in just a couple of days. The pumpers’ efforts, coupled with the string of press releases that sounded just as optimistic as the ones we read today resulted in a run that you don’t see every day even in Pennyland – over 600% added in just a couple of weeks.
Once the emails were gone and the excitement from the press releases died out, however, it all went pear-shaped and in just a couple of days the ticker wiped out most of the gains. Since then, VVIT‘s shares have not been able to go anywhere near the $0.35 high that they reached during the peak of the pump.
Currently, the mailing activity is nowhere near as intense as the what we saw in March, but in terms of PR’s, things look pretty much identical. Does that mean that VVIT will score a similar peak followed by a huge crash?
Only time will tell and, of course, we will be sure to check on them, but one thing that you should probably keep in mind is that according to the annual report, quite a lot of debt was converted into common shares at the end of March when the price was at its lowest. If this stock is to be sold, we could see the ticker heading south once again.
