American Heritage International Inc. (OTCBB:AHII) Crashes and Burns
In our previous articles about the company we warned our readers that the remarkable climb of the stock of American Heritage International Inc. (OTCBB:AHII) was only possible through the combination of e-cig hype and a multy-million pump.
Well, all those who listened and used caution should have avoided yesterday’s disaster when AHII bombed by exactly 50% in just six and a half hours of trading. After more than 3.7 million shares got dumped on the market the stock plummeted towards the bottom and at closing time was sitting at $0.7 per share.
The other major pump going on at the moment – the $.1 million promotion for Well Power, Inc. (OTCBB:WPWR) also crashed yesterday. WPWR lost close to 30% of its value and dropped down to $0.36 per share. This marked the seventh session in a row of corrections for the company and it may single that the pump is coming to its end.
A big part in the outcome of the session must have played the SeekingAlpha article which also exposed AHII as a stock targeted by a paid promotion. The pump campaign began with the creation of a special landing page which contained some rather bombastic statements. Then Future Money Trends were hired for $15 000 to send a couple of email alerts in order to build up the artificial hype and finally a hard mailer was put into circulation last week.
Even after yesterday’s fiasco AHII still commands a market cap of $69 million, a number that cannot be supported by the company’s fundamentals when at the end of September, 2013 they consisted of:
- $13 thousand cash
- $33 thousand total current assets
- $76 thousand total current liabilities
- Zero revenues
- $45 thousand net loss
Promotions backed by such big production budgets, and AHII‘s campaign is just that with $1,6 million set aside for the pump, often run for a prolonged period of time but the otucome is always the same.
The other major pump going on at the moment – the $.1 million promotion for Well Power, Inc. (OTCBB:WPWR) also crashed yesterday. WPWR lost close to 30% of its value and dropped down to $0.36 per share. This marked the seventh session in a row of corrections for the company and it may single that the pump is coming to its end.