Yet Another Round of Pumps for Montalvo Spirits, Inc. (OTCBB:TQLA)

TQLAchart.pngOn Monday another stage of the prolonged pump for Montalvo Spirits, Inc. (OTCBB:TQLA) was initiated. The various newsletters are still distributing the Andrew Carpenter’s analysis reports that have been passed around since the start of the campaign in May. In its latest incarnation TQLA has been assigned a short term price target of $8 which in turn will become $10 and more in the long run.

Well, investors who believed in their promises might be in for a long wait seeing that TQLA is currently sitting at $0.83. The absolute height reached by the ticker was a little above a dollar during the previous round of the pump. But the company was unable to support even that price and quickly dropped to $0.70.

The third party paying for the prolonged promotion – Belmont Group, Ltd. has, as of July 12, paid $1.8 million to Full Service Media, LLC in order to build investor awareness. We don’t know where the money is going to but most of the current pumpers disclose no received compensation while others own 30 thousand shares which they plan to sell. The only ones receiving $12 500 as payment are Buy Penny Stocks and Super St0ck Plays.

TQLA have just recently decided to join the alcoholic beverage industry. They offer a small selection of tequila products that have been granted a couple of awards from various competitions. This far their results for the fiscal year ended March 31 were:

  • $23 thousand cash
  • $385 thousand total assets
  • $714 thousand total liabilities
  • $28 thousand revenues
  • $1,6 million net loss

5NUVIchart.pngFor now the numbers aren’t very promising but during the past months TQLA have expanded their market distribution and may have began generating more serious revenues. They are also keeping their outstanding shares at a manageable level at 67 million shares. Most of the shares held by insiders are restricted with only 7,2 million free trading shares owned by undisclosed seed shareholders.

Investors should be careful when playing pumped stocks. Even more so when the promotion has been going for months with increased volatility as the only results. The same can also be said for Xumanii, Inc (OTCMKTS:XUII) who crashed by 44% during yesterdays session. Emo Capital Corp. (OTCBB:NUVI) barely moved upwards by 2% despite being heavily pumped since the start of the week.

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