Southern ITS International, Inc. (PINK:SITS) Carried by a $200,000 Pump

SITS_chart1.pngA new big pump was set in motion over the weekend, touting the stock of Southern ITS International, Inc. (PINK:SITS), with promoters being compensated up to $200 thousand to advertise the company. The pump seems to have kicked in as yesterday SITS closed up 129% up, even if at a deflating sub-penny price of $0.0085 per share.

Yesterday pumpers Awesome Penny Pick, who will be bagging $200 thousand for their efforts, sent their subscribers a new tout email on SITS. Timed right along with the pump, the company released news regarding entry into the final stages of negotiations with Gephart Electric Co., a large electrical construction contractor. The press release contains no hard information or an announcement of a contract but instead the hopes and excitement of the company to maybe work with Gephart.

The company has a history of optimistic press releases followed by disappointment. In August 2012 a press release announced a ‘definitive agreement’ with CSI Business Finance, Inc. who were supposed to invest $1 million into the company to aid its growth. This investment doesn’t seem to have come through as it’s not reflected in SITS‘s subsequent filing.

SITS was formerly known under a number of names, changing and abandoning unsuccessful business ventures. SITS was known as Alco Advanced Technologies, Inc. until March 2012 and traded under the ticker symbol ALCD. The name change was connected with a share issuance of 100 million shares to Southern ITS Corporation (SIC), effecting a merger where the surviving entity was Southern ITS International, Inc. SIC brought total assets of $126 thousand and quarterly net loss of $42 thousand to the company’s already dreary financial state with millions worth of cumulative net loss and insignificant revenues.

The latest quarterly report of SITS is for the quarter ended September 2012 and incorporates the consolidated information from SIC, now a wholly owned subsidiary. The brief rundown of the latest quarterly is as follows:

  • $80 thousand in cash
  • $922 thousand in current liabilities
  • $734 in quarterly revenue
  • $90 thousand net loss

Due to the lack of more current reporting and the sparse available information in SITS‘s filings, investors don’t know how the various touted activities and supposed benefits of the acquisition of SIC impacted the company’s financials over the last quarter of 2012. Pumpers are now basically touting a pink sheet stock that has barely been trading over the last few months, has incurred a mountain of debt and has not proven that it can successfully generate sizable revenues.

1LUDG_fail.pngThe promoters at Awesome Penny Pick were part of terrible pump jobs in the past. One example is the summer fiasco of a promotion that Ludwig Enterprises (PINK:LUDG). The chart speaks for itself. Paid pumps often pan out this way and considering the high budget dished out to promote SITS, it may follow a similar pattern, except it doesn’t look like it could quite reach 50 cents per share.

Investors are advised to do their own due diligence and never trade on paid recommendations that landed in their email inbox.

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