Motalvo Spirits, Inc. (OTCBB:TQLA) Up 30%, Seen as Buying Opportunity

The rapid fall of Motalvo Spirits, Inc. (OTCBB:TQLA) in the end had a positive effect, quickly bringing the ticker to what was perceived as a bargain price. So suddenly, TQLA was bought up to reach dollar volumes of $437,000, growing more than 30% to stand at $0.428. The company has not seen promotion since August 8th, but the newest spike follows a press release on potential international distribution.

The products of TQLA are indeed seeing distribution, and easily available online, aiming for a high-quality market. The only problem was that TQLA was overly promoted, and did not rise on its own.

We will be watching for the developments of international sales through partner Prestige International Exports, LLC The distributor is specializing in exporting Californian alcohol, and mostly focuses on prestigious high-end brands.

The problem following a large promotion is that TQLA would have to absorb the unloading of still a lot of shares, bought at higher prices by newly invited investors. While TQLA did not slide down to the 30 cent range, as expected, it is still far from the dollar levels, and it did not achieve the amazing success of other heavily promoted tickers.

TQLA shows some long-term potential through its agreement to sell shares in $500,000 increments to Lincoln Park Capital Fund, LLC, for a total of $10 million. The company announced this share placement would happen gradually, as working capital need arose, paying attention to potential share dilution.

But one good day is not a sign of recovery, as other penny stocks show. Sometimes, such a day is a precursor for an even bigger drop. Lot 78, Inc. (OTCMKTS:LOTE) was a stock promoted even harder than TQLA, and logically, it slid. Then on one day, it grew by more than 200%. Then, LOTE slid back again to the levels before the jump, as slow selling dragged down the stock.

For Bebida Beverage, Inc. (OTCMKTS:BBDA) the climb from $0.003 to $0.006 is a bit more logical, as 200% is an easy achievement for sub-penny stocks. But the fallout is just as expected, as the otherwise intriguing beverage company could not hold onto the short-term gains.

The new week will show if TQLA could manage to attack the dollar levels again. Still, it is best not to rely too much on a great comeback, as TQLA has shown deep corrections recently. From now on, TQLA may move on a different logic, without the help of the glossy paper mailer distributed a couple of months ago, and without an emailed promotion. This time, TQLA may show its true spirit, and move according to the development of its business.