Revolutionary Concepts Inc. (OTC:REVO) Adds 70% on Acquiring Finance Subsidiary
The promise of a revolution always sounds good. This only helps the Revolutionary Concepts Inc. (OTC:REVO) stock, which shot up on two consecutive days. However, the company is still a development-stage business, betting on a single bright idea, so it may be a while before real marketing catches up with stock price.
REVO trades around a cent and shows possibility for growing and falling quickly within short trading periods, so it is a fast and furious bet, having taken gains upward 200% and erased them again. Since its last pump in August, the small, $2.8 million company has not improved its business materially, still relying on preliminary plans. Its incomplete filings, dating back to 2011, show the following financial strengths and weaknesses:
- Zero cash
- Zero revenues
- $1.7 million net loss
- $1.73 million total liabilities
The stock’s recent climb from double-zeroes follows a series of press releases pushing this ticker to the front with high trading volume. The latest news may mean REVO practically changes its business description, by acquiring financing company Greenwood Finance Group LLC. This is a logical move, after Greenwood supported REVO for years in its pre-market attempts, and finally used the company to get out on the OTC markets.
The assets of Greenwood Finance will be used toward developing and marketing the REVO system for controlling computers with eye movements, a novel approach using existing web camera technology targeted to the disabled. The development potential makes the company believe its stock is currently undervalued at one cent and may easily trade between 23 and 31 cents.
The new financial situation of REVO, taking into account the Greenwood assets and income, is still not available, but may prove a significant piece of news and send the relatively cheap stock up as more and more investors learn about it. We’ll be tracking the stock movements the next days to see where this ride will take.
In the case of such rapidly rising companies, it’s best to hold off investments you cannot afford to lose. The REVO ticker was mentioned in an $9,000 promotion by the Stocktamer, a minor pumper with a record of past picks that went sour quickly. One of its previous choices, Life Design Station, Intl. (OTC:LDSI) spiked immediately on the August pump and reached a high of 5 cents, then quickly falling to double zeroes.