The Stock of Baltia Air Lines Inc (OTCMKTS:BLTA) Crashes to New 52-Week Lows
Baltia Air Lines Inc (OTCMKTS:BLTA) have been trying to establish a non-stop service from JFK Int’l Airport to Pulkovo II Int’l Airport of St. Petersburg with their Boeing 747 for years now. When last October the company announced that it has moved to Phase III of its FAA Air Carrier Certification investors were more than excited especially when in the following months BLTA issued PRs about their progress rather regularly. For the past three months however the company has been keeping complete silence with the last official PR coming out on February 6.
On their Facebook profile however BLTA have been a bit more talkative and on March 26 the company posted that outside factors have been preventing them from passing the Mini Evacuation test. Rumors about the mini evacuation test have been flying around for months and they continue to do so even now. The latest date for the test mentioned by investors on message boards was May 5. All those who expected a different outcome remained bitterly disappointed – so far there is no PR about the successful passing of the test.
As a result during yesterday’s trading BLTA’s stock sunk like a rock immediately after the opening bell and failing to recover closed nearly 20% in the red at $0.00828. Not only that but during the session the ticker dropped to a new 52-week low of $0.0079. With the daily traded volume of more than 38 million shares surpassing the 30-day average by over three times it is quite clear that investors were eager to shed their holdings.
For quite a while the hope that BLTA is moving forward with its certification process has been the only thing that kept investors excited because the fundamentals of the company are simply atrocious. The annual report for 2014 showed that at the end of last year Baltia had:
• $185 thousand cash
• $210 thousand total current assets
• $3.1 million total current liabilities
• ZERO revenues
• $15.4 million annual net loss
In addition to these dreadful numbers the long-term shareholders of the company have also been put through a devastating dilution of the common stock. Last year BLTA sold 1.9 BILLION shares at an average price of $0.008. Not to mention that as of March 20, this year, BLTA had 5.8 billion outstanding shares out of the 5.96 billion authorized. The next quarterly report will show if the company has already increased the authorized amount in order to accommodate the issuance of more shares.
It should be obvious that BLTA is a dangerous stock to trade. If you are determined to play the ticker be sure to do extensive due diligence before you put any money on the line.
