Aero Grow International, Inc. (OTCMKTS:AERO) Crashes, but Promises a Future
Aero Grow International, Inc. (OTCMKTS:AERO) just came into the game, when increased investors’ attention caused a day of record selling. The relatively inactive ticker slid down to $1.98 as more than 120,000 shares changed hands. In the past days, AERO traded sporadically, between $2 and $2.20. AERO was active in the summer of 2012, but this never evolved into a period of more robust volumes. And since there was no new promotion since the end of July 2012, we have to wait and see if this is not another fluke. 
Yet in the past days, AERO has been busy with self-promotion, retaining Genesis Select as its investor relations firm. And early on Tuesday, the company provided a fresh PR outlining its new indoor garden product, AeroGarden Ultra. For now, the rest of the week will show if the efforts pay off and AERO is bought, despite the relatively high price.
AERO produces a home-based gardening technology, allowing users to grow herbs or leafy vegetables. The company is not immediately comparable to hydroponics producers, and may not be easily classified as belonging to the medical marijuana bubble on the OTC markets.
AeroGarden seems like a widespread product, appearing on online auctions both new and used. This is how the bottom line reveals the success of the product:
- $3.3 million cash
- $4.5 million total current assets
- $2.24 million total current liabilities
- $1.12 million product sales
- $67,297 net loss for last quarter, down from $7.1 million for same quarter in 2012
AERO improved its earnings position after a one-off debt conversion cost. The company has just 5.9 million shares outstanding, and is capped at around $11 million right now. With a low float and a small share base, AERO has all the trappings of a potential high-flier, except for the rather forbidding share price.
Speaking of surprising newcomers, Endeavor IP, Inc. (OTBB:ENIP) continues with its promotion-fueled rise, reaching as high as $1.11. But buying volumes are shrinking and the trend will need to prove its viability soon.
Yet another ticker that moved in from very inactive trading was Biozone Pharmaceuticals, Inc. (OTCBB:BZNE“>BZNE), also a company with viable products. Yet the BZNE“>BZNE stock offered a choppy ride instead of a smooth rising trend, as paid promoters stay away from now, and the company relies on its press updates.
In the case of AERO, it’s a cat in a bag regarding stock levels. Despite the solid fundamentals, the company may follow the path of other small caps that had everything right- only to turn out wrong. If you choose AERO, it is best to stay away from unaffordable investments.
