Avew Holdings Inc (OTCMKTS:AVEW) Starts Correcting
Since the start of June AVEW Holdings Inc (OTCMKTS:AVEW) shifted into a higher gear and their stock price moved accordingly. In just a couple of sessions it managed to run from as low as $0.0005 to a new 52-week high of $0.0033. Unfortunately such heights proved to be far too unstable and yesterday the company suffered a harsh correction of more than 15%. The stock started sliding right from the opening bell and found itself back down to $0.0022 at the end of the session.
For now investors are not too worried as the stock is still keeping most of its recent gains and the latest news coming from the company show that they are ramping up their business. On March 25 AVEW acquired Fantastic Pool Services LLC, a pool service and maintenance company that should significantly boost their revenues. Yesterday another acquisition was revealed but this time in the field of construction and remodeling. According to the latest official tweet from the company they have already signed $150 000 worth of contracts thanks to this latest acquisition.
The company even managed to finally remove the Pink Limited Information sign from their OTCMarkets profile by submitting the financial report for the first quarter of the year. Although the fact that they are now current with their filings undoubtedly boosted investors’ confidence in the stock the report also revealed some rather grim numbers. At the end of March AVEW had:
- $12 thousand cash
- $82 thousand total current assets
- $394 thousand total current liabilities
- $58 thousand revenues
- $60 thousand net loss
In addition to the depressing results AVEW have also managed burn through almost all of their authorized shares. The company has 2.98 billion outstanding shares out of the 3 billion authorized.
With no ability to issue more shares and little no available funds some investors are wondering how the company was able to successfully make not one but two acquisitions. For now AVEW have not submitted any 8-K forms covering the recent deals and with the company being in the pinksheet tier we might have to wait for the next financial report in order to learn the answer.
Until then the stock is likely to remain highly volatile. That is why doing your own due diligence and taking into account all the possible risks around the stock should always precede any trades.
Yesterday the stock of DNA Brands, Inc. (OTCMKTS:DNAX) got flattened to the ground after it lost more than 65% of its value and found itself at $0.0032. Alkame Holdings, Inc. (OTCBB:ALKM) also got crushed losing 22% of its price and closing at $0.0022. The drop came as a result of a record dumping of shares brought by a paid pump touting the company.