Advanced Battery Technologies Inc. (PINK:ABAT) Spikes up 50% on Deserved Attention

Good batteries are essential for the wide spread of mobile devices, and a foreign penny stock company has reared its head to benefit from the trend. We noticed Advanced Battery Technologies Inc. (PINK:ABAT) as it added 50% late last week. ABAT0107.png

The ABAT ticker poses a problem with questionable reporting and incomplete information, earning a skull and bones warning on the OTC Markets. The latest 10Q report is from the end of last year, showing significant financial strength, yet the foreign status of the company and the little known business depressed the ticker after its single promotional mailing in 2011. KITD0107.png

The gigantic, yet obscure business is reaping profits and shows significant strengths in an active market:

  • $74 million cash
  • $10,27 million net earnings
  • $111,63 million current assets
  • $8.13 million current liabilities

This stock is rated among the winners in the battery business, which spans not only handheld devices but much promising batteries for electrical vehicles. There are only speculations on why ABAT was such a fiasco in the pink sheet markets after de-listing from NASDAQ in 2011. The company excuses itself, stating that it had no fault for the demands of the NASDAQ exchange and that they exceeded the reasonable guarantees. After trading on the OTC markets for about a year, the stock is more than 70% down. It is still unclear what direction it would take with the new year and several PR messages.

The ABAT ticker has had minor climbing trends in 2012 but so far has not been able to beat the inertia of the fall, and has kept around 50 cents in the past year.

Another ticker that went from the NASDAQ and into a skull-and-bones pink sheet bet is Kit Development Inc.(PINK:KITD), a stock down from $16 that now trades below 50 cents. Since the de-listing in December last year, the KITD ticker is searching for direction and like ABAT, it’s unknown whether the otherwise well-established businesses will earn the investors’ confidence.

Neither stock was in any known promotion in recent months, yet we may expect to see attempts at publicity in the future. It is best to estimate your own taste for risk before believing any company has a certain recipe for success and a rising trend in its stock.

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