Vista International Technologies, Inc. (PINK:VVIT) Seem to be on the Right Track
There’s no beating about the bush, our planet would have been in a much better shape if it wasn’t for us. Our cars, our power plants and our constant thirst for energy mean that we are slowly but surely killing Mother Nature. It might sound a bit hippie-ish, but it’s true and if we don’t do something about it soon, we could end up in big trouble. Luckily, there are companies that want to make a change and Vista International Technologies, Inc. (PINK:VVIT) is one of them.
Yesterday, a couple of hours after the closing bell, we received a few emails from paid promoters about VVIT and it was only normal to check them out and see if we will be able to confirm the pumpers’ claims.
VVIT have been around since the 1980’s and, just like a nerdy child, they have been interested in all sorts of technologies. They have set themselves the task of developing new and exciting ways in which we can obtain energy without polluting our planet. One of the main points in their portfolio is a green technology through which waste is burned and the gasses that come out are used to produce electricity, but they also have a new type of high octane fuel, that is supposedly approved and can be used all over the US, as well as a new type of electric motor that could one day find itself powering your new electric car.
It all sounds terribly exciting and if they manage to develop all the products and market them properly, their success could be big. They still haven’t done that and, although they have had some revenues over the last couple of years, profitability is still a mirage. Here’s a recap of VVIT‘s most important financials as found in the latest 10-Q covering the third quarter of 2012:
- cash: $9,967
- current assets: $23 thousand
- current liabilities: $4.8 million
- quarterly revenue: $184 thousand
- quarterly net loss: $44 thousand
Those figures won’t get them far but, if we have to be optimistic about it, VVIT seem to have progressed during the last couple of years. We compared the figures above with the ones found in previous financial statements and we can definitely see some movement, especially when it comes to cutting down costs. In addition to this, they announced yesterday that they have summed up the figures for the fourth quarter of 2012 and they say that things are looking up. They also claim that the first two months of 2013 have been a roaring success. We would have been happier if VVIT were able to prove those announcements with a new financial statement, but we’ll probably need to wait a little longer for that. In any case, we’re quite sure that the shareholders were excited by the press-release.
They shouldn’t get too optimistic, though. There are still a ton of liabilities and the 10-Q tells us that there are some notes in default, which means that some colossal interests are building up as we speak. In addition to this, the paid promotion that is currently running for VVIT might adversely affect the performance of the stock. This is exactly what happened to Graystone Company Inc (PINK:GYST) who got pumped by Research OTC at the beginning of February. GYST did manage to gain some ground when the promotion started, but as soon as the emails stopped, they crashed hard and not long after that, they reached levels far below the pre-pump value.
That’s why, even though VVIT seem to be moving in the right direction, you should weigh the risks carefully when making your investment decision.
