SOLO INTERNATIONAL (OTC:SLIO) and TheStockScout Start the Promotional Machine Once Again
A wise man said “Only a fool makes the same mistake twice.” and he is absolutely correct – if you have fallen for a paid promotion and got yourself burnt once, you probably won’t fall for another one. Apparently TheStockScout think otherwise and they have taken up the task of pumping SOLO INTERNATIONAL (OTC:SLIO) for the umpteenth time.
We will explain what happened the last time SLIO got featured in an awareness campaign by promotional newsletters in a minute, but let’s first start with the most important question – “Do SLIO have any operations and, if yes, what are they?”.
The answer is “They don’t have any operations yet, but they plan to start them very soon.”. That’s a very common answer for penny stock mining companies and – guess what – SLIO are a mining company. We’ve covered our fair share of these ventures and we’ve seen what happens when such a company appears in a promotional email saying that their properties are extremely lucrative, and that the millions are just around the corner. TheStockScout’s email about SLIO is much the same and it is garnished with some peculiar information like for example the claim that China is going to dominate the world because they are the biggest producer of rare earth minerals.
Fear not! SLIO is here. The only thing is, why did TheStockScout pick SLIO out of the hundreds of small cap ventures in that business. In most cases when a mineral exploration company is pumped, a forward-looking press-release is issued alongside the promotion in an attempt to distract the investors from the dreadful financials, but they haven’t even bothered to do that. There was nothing left for us to do but to open the latest report and check how SLIO are doing. Not surprisingly, the financial statement looks terrible and we have summarized the most important figures below:
- cash: $23 thousand
- current assets: $30 thousand
- current liabilities: $152 thousand
- revenue: $0
- net loss: $129 thousand
Due to the dreary state, SLIO‘s management are forced to issue a series of convertible notes, and although the loans are not huge, if they don’t start operating and generating revenue soon, they will have some serious trouble paying them off.
On a brighter note, at least the dilution is not that terrible. SLIO have hardly issued any new stock in the past year and, at one point, their CEO even canceled 100 million of his own shares in order to raise the shareholders’ value, which, of course is very considerate of him. This act of generosity coincided with a promotional campaign for SLIO and this is where it gets scary. We have outlined the mammoth drop that they experienced once the emails stopped, which means that the CEO’s act actually had an adverse effect.
They are not the only ones who crash hard after the hype of the pump has stopped. ITonis Inc (PINK:ITNS)is a very recent and a very painful example for the ones who invested their hard-earned cash. TheStockScout sent out a couple of emails before the opening and after the closing on January 30. We have out lined what happened on January 31 and as seen ITNS have remained in the sub-penny field since then.
SLIO have been in that situation once and there is nothing to stop them from going there again. That’s why you should be extremely careful when making your decision.