Price Rolls Downhill for Tire Recycler Harmonic Energy Inc. (OTC:ASUV)
When the rubber meets the road, tires wear out- and it’s the job of Harmonic Energy Inc. (OTC:ASUV) to recycle them. In recent days, the company went up on renewed interest after a press release, but the last three trading sessions come with deep corrections, the last one erasing 13% to $0.73.
The latest news from the company are somehow underwhelming. The company announced the launching of its YouTube channel, and so far features two videos with extremely limited views. The videos at least show Harmonic Energy may have a working factory to regenerate tires. Other data contribute to the solid image of the company:
- $56, 446 cash
- $241,552 net loss
- $595,393 total assets
- $214,381 current liabilities
- Zero revenues
Although there is an almost limited demand to decommission old tires in a reasonable manner, this is still in the future for Harmonic Energy. It remains unknown whether a better website, mobile services and a YouTube video will bring customers through the door. The most recent promotional mail from this summer sets the expectation for $100 million per year, an astronomical sum considering the company is merely in development and is only burning through cash, generated by stock warrants and debt.
The company changed identities and business plans twice, which is itself a red flag. Before it secured a steady contract to recycle tires, the group tried its luck with aerial surveillance systems and organizing tea parties for children. However, none of the birthday parties materialized as the company was also in the development stage back then. Although development is possible for any company, a back history of failed business plans makes it less probable. Short-term PR hype may lift the ticker, but this is usually followed by significant corrections.
The company is also riding the green technology wave which has lifted several penny stocks in the future with promises to make a profitable business out of solving the environment’s problems. Harmonic Energy was promoted briefly in the summer months, with a single email by Ultimate Stock Review, budget unknown. This is a one-time promotion, and the name of the mailer is related to the website TheUltimatePennyStock.com. This pumper has a history with American Liberty Petroleum Corp. (OTC:OREO) which held up for a while in May, but fell by more than 95% in the following months. The stock is being pumped again in a bid to repeat the peaks from the summer- but maybe also the falls.