Can Swingplane Ventures, Inc. (OTC:SWVI) Bounce?

The current Awesome Penny Stocks (APS) pump job, Swingplane Ventures, Inc. (OTC:SWVI) finally crashed yesterday. The pumpers claim it will bounce, and the company is giving them a hand, but that may not be enough.

SWVI had a nightmare of a session, closing down 52.49% at $0.43 per share on more than 61 million shares. We have been warning our readers a crash was coming from the start.

APS and the other pump newsletters run by Degroupa Tenner Morales Media Corp., are saying they are “1,000% confident” there will be a bounce. The meaningless percentage aside, a bounce is possible in theory, but it depends on what SWVI will do.

The company issued a press release early in the morning claiming the acquisition of Mid Americas Corp. has been closed and the Super 8-K will be filed today. At this time there is no such filing, but the day has just began.

Assuming SWVI files the Super 8-K, the potential bounce will depend a lot on the contents of the filing. If Mid Americas doesn’t bring substantial capital to SWVI the company will have to resort to dilutive financing or debt.

Even in the best case scenario shareholders are still looking at a company which holds an option for 75% in a property. For the option to stay in force, the company will have to pay millions of dollars. Furthermore, SWVI hasn’t conducted feasibility and economical studies, and at this time there is no guarantee SWVI will be able to achieve profitable operations.

Ultimately, before making any decision about SWVI, potential investors must consider the red flags raized by the company and the APS pump job. A failure to take those into consideration can be extremely costly. Those who got burned on TagLikeMe Corp. (PINK:TAGG), World Moto, Inc. (OTC:FARE), and Superior Venture Corp. (OTC:SVEN) should know what I mean.